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Chairman of the local private automaker Vinaxuki Bui Ngoc Huyen proposed the Government put forward preferential policies on land, technological transfer, and long-term, low-interest-rate loans to stimulate automobile spare part manufacturing businesses.

In an interview granted to the Vietnam News Agency, Huyen said the industry has undergone 20 years of formation and development with many businesses encouraged to join the auto support industry.

He said the Government has adopted a number of policies to develop the sector, such as supporting the mechanics industry with zero-percent interest rates on 10-year loans, adding that however, few businesses can access this source of capital.

He said support policies do not suit the real situation due to a lack of accurate market forecast.

The businessman said his company has built auto-manufacturing factories creating fuel-saving and low-cost cars for farmers and the middle-class that meet international export standards, but high tax has pushed prices up.

Huyen suggested the Government select and cooperate with foreign partners in producing engines and complicated spare parts via policies prioritising car accessory production over assembly.

Vietnam aims to produce 227,000 automobiles and become a major supplier of spare parts and high-value items in the world automobile production chain by 2020 as a part of the master plan for Vietnam’s automobile industry development recently approved by the Prime Minister.

Source: VNA