VinFast wants domestic enterprises to produce electric cars together, increasing the localization rate

VTC NewsVTC News12/12/2024


At the seminar on VinFast automobile localization held in Hai Phong this morning (December 12), Mr. Le Ngoc Anh - Director of VinFast Vietnam Factory - said that the supporting industry in Vietnam plays an important role in promoting the development of the economy, especially the manufacturing industry, including the automobile industry. However, before VinFast appeared, this field was still facing many big challenges.

The first challenge is small scale, most of the supporting enterprises in Vietnam are small and medium enterprises, lacking investment in technology and production capacity.

Second is low competitiveness. Products of domestic supporting enterprises often have difficulty meeting quality and price requirements compared to international suppliers.

Finally, there is a lack of connectivity in the supply chain, domestic enterprises still lack close connections with large enterprises and global supply chains.

VinFast's car production line is 90% automated.

VinFast's car production line is 90% automated.

“Faced with this situation, right from the beginning of entering the automobile manufacturing industry, VinFast has set a clear goal of not only producing cars but also promoting the domestic supporting industry to develop more strongly, thereby increasing the localization rate and contributing to the country's sustainable economic development,” Mr. Ngoc Anh emphasized.

With that goal in mind, right from its inception, VinFast has determined not to follow the conventional assembly path but to become a true automobile manufacturer. Only then can it strongly promote the development of domestic supporting enterprises, while reducing dependence on imported components.

At the world's leading modern factory complex, VinFast dedicates more than 30% of the complex's area to developing supporting industrial zones, creating conditions for businesses to directly participate in the supply chain.

In particular, VinFast has proactively produced important components such as the body, engine, etc. thanks to factories with a level of automation of over 90%, ensuring quality and production scale meeting international standards. Currently, in the VinFast factory, there are workshops: stamping, welding, assembly, engine, etc., all installed on the most modern and advanced production lines in the world from Germany, Austria, Korea, etc.

“Currently, the localization rate of VinFast electric vehicles has reached more than 60%, including important details such as the body, engine, roof, and shock absorbers. This is a remarkable achievement in the context of Vietnam's young supporting industry,” Mr. Ngoc Anh informed.

Up to now, VinFast has built a clear roadmap to increase the localization rate through the domestic production and supply of additional parts such as: car seats, electric wires, car lights, car rims, brake - steering systems, interior and exterior components, mirrors, etc. The localization rate will reach 84% by 2026 when VinFast produces electric batteries, one of the most valuable components in electric vehicles.

VinFast wants to increase the localization rate of electric car production to 84% by 2026. (Illustration photo: Thanh Lam)

VinFast wants to increase the localization rate of electric car production to 84% by 2026. (Illustration photo: Thanh Lam)

To achieve these goals, VinFast said it will coordinate with partners currently present in Vietnam. At the same time, it will take advantage of the existing network of supporting businesses to optimize domestic supply, reducing dependence on imports.

“VinFast will cooperate with Vietnamese enterprises that have experience in manufacturing spare parts, components or supporting fields such as logistics, assembly, processing, etc. to reduce transportation costs, increase supply speed, and promote the development of domestic enterprises.

We will also cooperate with existing FDI enterprises in Vietnam operating in the supporting industry or component manufacturing sector, helping to increase access to high technology and modern management skills," said the VinFast factory director.

Commenting on this goal, economic expert Pham Chi Lan expressed her belief that VinFast can do it: " VinFast has been around for more than 7 years but has done more than companies that have been in Vietnam for decades ."

PSG Dr. Bui Quang Tuan, Vice President of the Vietnam Economic Science Association, former Director of the Vietnam Economic Institute, also highly appreciated the role of VinFast in the effort to increase the localization rate in automobile production in Vietnam.

“I would like to use the term “leading bird” to compare VinFast. I believe that with VinFast’s current success, in the future, many domestic enterprises will join hands to produce components for the automobile industry. From there, it will help us go faster and more sustainably instead of finding our own way,” said Mr. Tuan.

Thanh Lam


Source: https://vtcnews.vn/vinfast-muon-doanh-nghiep-noi-cung-san-xuat-o-to-dien-nang-ty-le-noi-dia-hoa-ar913230.html

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