Vietnam auto sector trails global peers despite trade war boost

Volumes are expected to remain small unless domestic production is incentivised.

Despite the boost from the trade war, the performance of Vietnam’s automotive sector is expected to remain weak compared to its regional peers.

Whilst its score in Fitch Solutions’ Autos Production Risk/Reward Index (RRI) has risen from 49.3 to 49.8 out of 100, it still falls below the regional average of 57.7 and just below the global average of 50.0.

Vietnam’s automotive sector slightly accelerated to 49.8 points due to the US-China trade war, but the lack of a strong industry policy is dragging the sector down, according to the firm.

According to the breakdown of the RRI, Vietnam gained a low score of 8.9 for industry policy, as automakers are forced to look elsewhere to invest. As a result, the country got a score of 39.3 on its vehicle production volume indicator.

Volumes are expected to remain small unless domestic manufacturing is incentivised.

Despite all of this, the country remains amongst the top 10 most attractive Asian markets for auto manufacturing. Vietnam scored 58.8 for industry rewards, including the high score of 78.6 on its competitive landscape indicator. Country rewards were also attractive at 60.3, with strong points for labour force (82.1) and low average wage costs (83.9).

Photo courtesy of Pexels.com.

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

ARA LOGOS is currently on the 13th spot.
Meanwhile, the demand for petrochemical exports benefitted from this same crisis.
This is expected to speed up the electronic exchange of trade documents.
This is in support of achieving Absolute Zero Carbon by 2040.
Adults will only shop if goods are discounted by at least 48%, survey says.   About 54% of 1,001 Singaporean adults have plans to shop during the Black Friday sales but only if prices of goods are discounted by at least 48%, a survey from Finder.com showed.
This move is in line with its goal to accelerate recommerce growth in SEA.
The notes were released under its $3m Multicurrency Medium Term Note Programme.
Singtel showed the most growth.
Re-exports also saw an increase of 16.4% in the same month.
The marine company apologised to its workers at the dorm.
SG electricity demand peaked at 7,667MW in October 2021.
The two aim to accelerate the progression of AI.
It will focus on sustainable opportunities for companies in Singapore.
Cargo load factor, however, was down by 1.6% YoY to 97.3%.
Despite this, KF pegs their estimated total sales for the year at 13,000 units.