In the future, the export of auto parts and components promises to be an industry that brings high export value among the billion-dollar industries in Vietnam.
Auto parts and components - export "bright spot"
According to the General Department of Customs, the group of means of transport and spare parts in the first 11 months of 2024 had a total export turnover of 13.76 billion USD. Compared to the same period last year (12.01 billion USD), this year the export turnover of this group of goods still maintained positive growth, with a growth rate of nearly 13%.
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| Vietnam's export turnover of auto parts and components has been increasing gradually in recent years. Photo: TT |
Notably, Vietnam's auto parts exports to the world reached 9.029 billion USD by the end of November, the highest level ever.
According to the General Department of Customs, since 2019, Vietnam's auto parts exports have exceeded the 5 billion USD mark. Key products include electric wires and cables, tires, mechanical parts, plastic components, etc. Of which, auto electric wires and cables account for 65% of the export value.
According to experts from the United Nations Industrial Development Organization (UNIDO), Vietnamese enterprises have great strengths in the production of electrical wires for automobiles and are actually the world's third largest exporter of this product, after China and India.
Major auto centers such as Japan, the US, the EU and even Thailand are importing automotive electrical cables from Vietnam, affirming its position as an important link in the global auto assembly supply chain.
Statistics from the General Department of Customs show that Vietnam's auto parts export turnover has maintained a double-digit growth rate in recent years.
This is the result of the shift of production from large markets such as China to smaller but potential markets in Southeast Asia, including Vietnam. In addition, Vietnamese enterprises are also catching up with the demand for large-scale production and increasingly participating deeply in the global supply chain.
A good sign when Truong Hai Group Joint Stock Company (THACO) held a ceremony to launch the export of the first shipments of the year at the beginning of the year of At Ty 2025. Specifically, THACO AUTO (a member group of THACO) exported 120 Kia Frontier trucks to the Middle East, 400 Kia New Carnival body paint kits to India and 45 Peugeot Django 150cc motorbikes to Cambodia.
In 2025, THACO INDUSTRIES (THACO's member group in the field of mechanics and supporting industries) plans to export 2,800 semi-trailer products of all kinds to the North American market; 1,400,000 spare parts to Asia; 50,000 civil equipment products to North America; 40,000 industrial equipment components to Australia; 9,000 industrial equipment sets to Europe. The products are manufactured on advanced technological lines, strictly controlled in quality, meeting international standards, especially in high-demand markets such as North America, Australia, Europe, etc.
This is considered a “bright spot” in the current export of auto parts. In particular, the market space for developing the manufacturing and exporting of auto parts for Vietnamese enterprises is quite potential if they know how to seize the opportunities.
Need more policies to encourage businesses
In the future, the export of auto parts and components will be an industry with high export value among the billion-dollar industries in Vietnam. Currently, Vietnam has about 2,000 enterprises producing components, creating jobs for more than 600,000 people, of which about 300 enterprises participate in the global supply chain. The proportion of components purchased by Japanese companies in Vietnam has increased from 28% to 37% over the past 10 years.
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| THACO inaugurated auto parts factories and THACO INDUSTRIES R&D Center; inaugurated THACO Bus factory's production line and introduced new product line-up of THACO Truck and THACO Bus brands. Photo: HV |
According to the Department of Industry (Ministry of Industry and Trade), Vietnam currently has about 350 automobile manufacturing and assembling enterprises, of which over 60% are enterprises producing automobile components and spare parts (214)... Vietnam is an export partner of components with many of the world's leading automobile manufacturing powers such as the United States, Japan, South Korea, China, Thailand and Germany...
Normally, the export value of Vietnam's auto parts is 1.5 - 2 times higher than the import value of auto parts that Vietnamese enterprises import. Vietnam mainly imports machinery and exclusive components of manufacturers such as engines, gearboxes, chassis, paints, etc. These are the most important parts and have high added value.
Meanwhile, in Vietnam, because automobile support industry enterprises, including companies related to Toyota, Honda... are only able to order or have the capacity to produce simple components, the added value is low, and the quantity of exports compensates for the value and quality.
Notably, to improve the export capacity of auto parts as well as take advantage of tariff incentives from FTAs, economic experts believe that it is necessary to link and connect businesses with each other and with large businesses in the world to create markets. However, according to experts, in 2025 there will be many great opportunities for the auto parts and components industry to develop because Vietnam is converging many positive supporting factors.
Dr. Le Huy Khoi, Deputy Director of the Institute for Strategy and Policy Research on Industry and Trade (Ministry of Industry and Trade) said that the orientation of the Vietnam Automobile Industry Development Strategy to 2030, with a vision to 2045, determines that by 2030: Developing the Vietnam automobile industry on the basis of ensuring overall socio-economic goals and efficiency; aiming to access and be proactive in technology for manufacturing machine parts; meeting environmental requirements and standards and the trend of using energy saving and green energy, enhancing the ability to supply domestic consumption needs and participating in the global automobile value chain, with large export value.
By 2045, the development of the automobile industry will not only ensure the goal of contributing to and improving overall socio-economic efficiency but also meet new requirements, pioneer in environmental protection and completely switch to manufacturing and supplying automobile products using electricity and green energy, new energy... Moving towards complete initiative in engine production for most vehicle types; fully meeting domestic consumption needs and deeply participating in the global automobile industry value chain; expanding and increasing export turnover and added value.
| According to the Department of Industry, to export auto parts and accessories, it is necessary to have more policies to encourage domestic supporting industry enterprises in general or auto supporting industry enterprises in particular. In particular, access, investment in technological innovation, product standardization and participation in the value chain with advantageous products, competitive enough to export auto parts and accessories. |
Source: https://congthuong.vn/ky-vong-xuat-khau-linh-kien-phu-tung-o-to-372255.html
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