VIETNAM AUTOMOBILES
AND AUTO PARTS INDUSTRY REPORT
TABLE OF CONTENTS
03
54
Executive summary
Entry landscape
07
55
Automobiles market overview
Domestic auto parts manufacturers
14
69
Auto parts market overview
Entry barriers
15
76
Business Environment
Collaboration landscape
15
Government policy
27
Trade agreements
29
Market features
38
Hai Phong Industrial complex
43
Quang Ninh Industrial complex
48
Chu Lai Industrial complex
VIETNAM AUTOMOBILES MARKET REPORT
82
Appendix: Financial statements
2
보고 요약
핵심 요약 – 1. 베트남 자동차 산업 현황
Automobile production in Vietnam, 2014 – 9M/2020
1
산업내 가치사슬 중 부가가치가 가장
낮은
Thousand units
300.0
120%
102.8%
100%
250.0
단계 영위 중
80%
200.0
2
완성차 조립의 마지막
부분에 집중 (OEM
일본 5, 미국 2, 베트남 합작사 3 등)
150.0
4
0%
-14.2%
50.0
인근국가(태국, 인도네시아) 대비 약2.6배
작은 규모의 완성차 소비 시장
126.1
255.8
256.4
219.9
272.0
284.2
181.4
2014
2015
2016
2017
2018
2019
9T/2020
9M/2020
Production volume
Thousand units
300.0
‘20년 9개월간 완성차 18.1만대 조립생산 vs
Growth
120%
100%
250.0
80%
60%
32.4%
3.3%
20%
0.8%
0%
254.8
209.5
277.3
279.5
174.9
-17.8%
246.7
50.0
40%
124.5
동기비 30.5% 감소
2014
2015
2016
2017
2018
2019
9T/2020
9M/2020
-
-20%
-40%
Consumption volume
3
-40%
Source: VIRAC, VAMA
98.1%
150.0
‘20년 9개월간 수입차 소비 65,074대로 전년
-20%
Vietnam automobile consumption, 2014 – 9M/2020
200.0
17.5만대 소비
VIETNAM AUTOMOBILES MARKET REPORT
20%
4.5%
0.3%
100.0
5
40%
23.7%
100.0
-
3
60%
Growth
Source: VIRAC, VAMA
보고 요약
핵심 요약 – 2. 베트남 자동차 부품시장
Completed auto parts production volume, 2014 - 9M/2020
1
Million units
12,000
Tier 1 : 83개사 (순정부품 제조업체 21개사 포함)
Tier 2, 3 : 138개사, 기타 178개사
450.1%
500%
400%
10,000
300%
8,000
2
200%
일본 부품업체가 부품제조시장 주도(개사) :
6,000
100%
28.3%
일본(177), 베트남(136), 대만(57) 등
4,000
-10.1%
-8.0%
0%
-86.8%
2,000
3
다수의 기업이 오토바이
부품과 자동차
0
-100%
1378.1
7581.0
9729.0
1288.1
1158.2
1065.9
2014
2015
2016
2017
2018
2019
Production volume
부품의 혼합 생산
806.9
-200%
9T/2020
9M/2020
Growth
Source: VIRAC, GSO
Production of components and spare parts, 9M/2020
Other spare parts for motor vehicles
4
자동차 부품 소비량 : ‘20년 9개월간 부품 8억690만개
소비로 동년비 26.3% 감소
1.37% 1.50%
2.95%
0.86%
3.21%
Ignition wire sets and other harnesses
used in motor vehicles
Other equipment used by motor
vehicles
9.68%
Other audio signal equipment
Airbag
5
현재의 부품생산 현지화율은 10%대로 낮은 상황
80.42%
Gear box
Starter-generator
Source: VIRAC, GSO
VIETNAM AUTOMOBILES MARKET REPORT
4
보고 요약
핵심 요약 – 3. 산업 발전 가능성
Localization rate of key auto parts OEMs in Vietnam, 2019
1
2
현대타잉콩, 타코, 빈패스트
Company’s
등 베트남
가계소비지출 증가, 베트남 정부의 강력한
자동차 산업 육성 의지와 우대정책 전개
등록비 50% 인하 조치 단행
자동차 소유비율 상승여지 풍부
4
USD
200
Bus
Target
15% - 18%
15 - 18%
35 45%
60%
60%
~12%
35% (Hyundai
Accent)
40%
~25%
30% (Honda City)
15% (Honda CR-V)
40%
~20%
37% (Innova)
45%
Less than
10%
Less than 10%
(Fadil)
60%
Average income and spent per month, 2010 – 2019
180
:
166.9
160
(대/1천명) 베트남 16, 인도네시아 55, 태국 196,
113.5
120
100
80
60
베트남 정부와 현지 완성차 제조 및 조립업체들의
59.7
52.1
86.1
69.0
81.3
109.6
116.6
92.9
40
강력한 부품현지화율 제고 의지
20
0
2010
2012
2014
Average Income
VIETNAM AUTOMOBILES MARKET REPORT
180.8
133.4
140
말레이시아 341
5
Truck
자동차 제조 및 조립 업체 성장 중
‘20년7월부터 베트남내 제조 및 조립된 자동차의
3
Passenger cars
average
5
2016
Spent per month
2018
2019
Source: VIRAC, GSO
보고 요약
핵심 요약 – 4. 우리기업 진출전략 포인트
10여개의 완성차 제조 및 조립공장 위치 감안 : 주로
1
Vinh Phuc
북부(하이퐁-빈패스트, 빈푹-토요타, 혼다, 닌빈& 꽝닌-
Ninh Binh
현대 타잉콩)와 중부(꽝남-타코)에 집중
Hai Phong
Da Nang
소규모 분산 제조, 부품 공급업체 부족, 숙련인력
2
Quang Nam
부족으로 인한 높은 제조 비용 감안 필요, 인근국가 대비
생산비용 약20% 고가
Binh Duong
3
Dong Nai
젊은 인력과 저렴한 인건비 활용 가능,
베트남 정부의 자동차 산업 육성 의지 강력
Can Tho
Automotive designed capacity in Vietnam
4
5
OEMs
Existing
capacity
2019
Planned new
capacity
2020
Expected total
capacity
2025
Thaco
207
120
327
TC Motor
102
150
252
베트남내 소비시장 겨냥과 병행한 아세안
Honda
10
10
20
역내 생산거점 구축 전략 동시 구사
Toyota
50
20
70
VinFast
250
250
500
Total
619
550
1,169
현지업체와의 합작투자를 통한 점진적인
중기적 진출 전략
VIETNAM AUTOMOBILES MARKET REPORT
6
Source: VIRAC
VIETNAM
AUTOMOBILES
MARKET
OVERVIEW
7
1.1. Automobiles market overview
Automobile production in Vietnam, 2014 – 9M/2020
Thousand units
300.0
120%
102.8%
100%
250.0
80%
200.0
60%
150.0
40%
23.7%
100.0
20%
4.5%
0.3%
0%
-14.2%
50.0
-
-20%
126.1
255.8
256.4
219.9
272.0
284.2
181.4
2014
2015
2016
2017
2018
2019
9T/2020
9M/2020
Production volume
-40%
Growth
Source: VIRAC, GSO
In the first 9 months of 2020, the number of cars produced and assembled nationwide reached 181.4 thousand units, a sharp decrease of 48.7% compared
to the same period in 2019. There were many factors affecting volume of domestic car production:
•
In the first and second quarters, the effects of the epidemic on the entire production chain already took it toll on Vietnam's imports. Moreover, many large
automobile manufacturers in Vietnam such as Ford, Toyota, Honda and TC Motor all had to stop production during March. Though some Thaco facilities are still
operating, workers and production chain are still under social distancing. This is the main reason for the significant decline in car production
•
Since the end of June, with support from the government by reducing 50% of registration fee compared to previous amount and extending payment term for
excise tax, a new door of opportunities has opened for domestic automobile production. According to the Ministry of Industry and Trade, car consumption in
2020 will decrease, but only by 3 - 5% compared to 2019. Therefore, many car manufacturers including FDI enterprises are considering maintaining operation, or
even expanding production in the context of the government’s support.
VIETNAM AUTOMOBILES MARKET REPORT
8
1.1. Automobiles market overview
In the first 9 months of 2020, the total car consumption of the entire
Vietnam domestic automobile consumption, 2014 – 9M/2020
Thousand units
300.0
120%
98.1%
100%
250.0
80%
200.0
60%
32.4%
150.0
3.3%
100.0
20%
0.8%
246.7
254.8
209.5
277.3
279.5
174.9
-17.8%
124.5
50.0
40%
2014
2015
2016
2017
2018
2019
9T/2020
9M/2020
-
Consumption volume
Growth
domestic market reached 174.9 thousand units, a sharp decrease
compared to the same period in 2019.
After the surge from the second half of 2018 to the end of 2019, domestic
demand for cars has been negatively affected by the epidemic. Luxury
goods such as cars will suffer even more in the context of all goods
stagnation; only a few essential items can maintain steady sales.
All VAMA members recorded a plunge in sales; many businesses had to
0%
stop production and close local car dealerships to avoid incurring losses. To
-20%
cope with decreasing demand, companies simultaneously reduced prices to
-40%
stimulate demand with preferential packages of up to thousands of USD. In
addition, VAMA also proposed to the government to be exempt from
Source: VIRAC, GSO
registration tax to incentivize automobile businesses.
Automobile consumption by type, 2019 – 9/2020
Units
40,000
35,000
30,000
333
8,917
25,000
580
20,000
15,000
10,000
5,000
377
863
5,781
511
584
7,345
6,649
319
460
6,812
176
3,300
22,528
19,624
14,362
7,228
7,203
7,959
20,287
19,394
226
291
5,964
6,079
27,396
6,532
365
331
20,916
21,355
22,314
15,228
24,823
223
2,757
12,807
8,958
333
4,812
372
262
5,711
5810
313
3,652
12,471
13,071
13,009
309
339
6,109
6,133
17,584
17,593
6,396
270
4,966
20,630
15,419
7,796
0
01/2019 02/2019 03/2019 04/2019 05/2019 06/2019 07/2019 08/2019 09/2019 10/2019 11/2019 12/2019 01/2020 02/2020 03/2020 04/2020 05/2020 06/2020 07/2020 08/2020 09/2020
Passenger cars
VIETNAM AUTOMOBILES MARKET REPORT
Commercial vehicles
9
Special-purpose vehicles
Source: VIRAC, VAMA
1.1. Automobiles market overview
FAVORITE VEHICLE TYPES CONSUMPTION BY REGION
North
Favorite vehicle type:
• Sedan, Hatch back,
Crossover
• Pick-ups, Van, Truck
Central
Favorite vehicle types:
• SUV
• Pick-ups, Heavy truck
South
South
Favorite vehicle types:
Source: VIRAC
• SUV, MPV (Multi Purpose
Vehicle)
• Light truck
VIETNAM AUTOMOBILES MARKET REPORT
10
1.1. Automobiles market overview
Automobile consumption by origin, 2019 – 9M/2020
Thousand units
40,000
35,000
30,000
25,000
14,711
13,459
12,539
12,211
20,000
11,358
10,773
11,391
6,947
12,542
13,251
9,426
8,155
8,889
15,000
5,919
7,276
7,977
7,786
7,986
6,188
10,000
5,000
18,799
4,749
19,769
14,047
15,269
16,162
15,275
16,994
12,594
16,406
16,595
19,700
4,361
9,599
7,685
11,697
11,878
7,400
15,874
16,088
11,095
17,826
12,869
0
01/2019 02/2019 03/2019 04/2019 05/2019 06/2019 07/2019 08/2019 09/2019 10/2019 11/2019 12/2019 01/2020 02/2020 03/2020 04/2020 05/2020 06/2020 07/2020 08/2020 09/2020
Domestic
Import
Source: VIRAC, VAMA
•
In 2019, the ATIGA agreement reduced the tax on imported CBU cars from ASEAN to 0%, causing a mass of imported CBU cars to flood into Vietnam. The
proportion of car consumption has also shifted very unfavorably for locally assembled and manufactured vehicles. In 2018, the consumption of
imported cars only reached 25% of the total volume of cars, but by 2019, this rate reached 41.2%.
•
Until early 2020, the car market is bleak; the volume of CBU imported cars, though cheap, still plummeted due to a decrease in demand. According to
VAMA in the first 9 months of 2020, Vietnam consumed 65,074 CBU imported cars, a decrease of 30.5% compared to the same period in 2019.
•
In addition to the joining of VinFast, Toyota Vietnam has recently returned to the domestic assembly of the Fortuner model after 2 years of import.
Accordingly, Toyota will buy more land to expand the factory as well as build a test track, aiming to increase capacity to 90,000 cars/year by 2023.
VIETNAM AUTOMOBILES MARKET REPORT
11
1.1. Automobiles market overview
VAMA’s automobiles consumption by region,
9M/2019 – 9M/2020
Units
Units
60,000
VAMA’s automobile types consumption by region, 9M/2020
120,000
100,000
80,000
55,312
53,499
50,000
98,626
88,390
40,000
74,728
74,041
30,000
60,000
40,000
20,000
32,189
20,338
18,325
18,185
23,768
20,000
10,000
0
0
5,110
544
North
Central
9M/2019
9M/2020
South
North
Source: VIRAC, VAMA
Passenger cars
891
333
Central
Commercial vehicles
South
Special-purpose vehicles
Source: VIRAC, VAMA
In the first 9 months of 2020, car sales decreased steadily in all 3 regions, North, Central and South. Total car sales of VAMA in all 3 regions only reached
172,537 cars, a decrease of 21.3% as compared to the same period in 2019.
•
The North recorded consumption of 74,041 vehicles, a decrease of 16.2% year-on-year.
•
Central Vietnam only achieved sales of 23,768 units, down by 26.2% compared to the same period in 2019, the sharpest decrease among the 3 regions. This is
the region with the lowest car consumption in the country.
•
The Southern region reached 74,728 units, a decrease of 24.2% compared to the same period in 2019.
•
The consumption structure of vehicles has not changed much, with the highest consumption still being passenger cars due to high demand for individual
vehicles; followed by commercial vehicles with trucks, pickups and buses, and finally specialized vehicles, which are mostly garbage trucks.
VIETNAM AUTOMOBILES MARKET REPORT
12
1.1. Automobiles market overview
Sales of top 10 best-seller automobiles in Vietnam, 9M/2020
Toyota Vios
19,120
2,912
Hyundai Accent
12,778
1,871
Hyundai Tuson
6,682
1,671
VinFast Fadil
6,461
1,515
Ford Ranger
8,101
1,500
Hyundai SantaFe
7,030
1,491
Mitsubishi Xpander
9,906
1,470
Hyndai Grand i10
10,101
1,313
VInFast Lux SA2.0
1,307
Mazda CX-5
6,380
1,267
0
5,000
10,000
9M/2020
VIETNAM AUTOMOBILES MARKET REPORT
13
15,000
20,000
25,000
9/2020
Source: VIRAC, VAMA
1.2. Auto parts market overview
Completed auto parts production volume, 2014 - 9M/2020
•
Million units
tech spare parts such as wheel rims, exhaust pipes, brakes,
450.1%
12,000
and shock absorbers, so output has decreased significantly.
500%
The aforementioned parts are in large quantity but bring
400%
10,000
little added value, so businesses turned to concentrated
production of other types of components, both for
300%
8,000
domestic service and for export.
200%
6,000
100%
28.3%
-10.1%
4,000
-8.0%
-86.8%
2,000
0
Since 2017, Vietnam stopped producing a number of high-
1378.1
7581.0
9729.0
1288.1
1158.2
1065.9
806.9
2014
2015
2016
2017
2018
2019
9T/2020
9M/2020
Production volume
•
components and spare parts reached 806.9 million units,
0%
a sharp decrease of 26.3% compared to the same period
-100%
in
•
2.95%
0.86%
during
March,
The average localization rate of Vietnam's auto industry in
import price. Even the big business like THACO only
achieved 15-18% of the localization rate.
•
Within the structure for complete auto parts, other
motor vehicle parts account for the largest share with
more than 80% of output. These are small components
Airbag
that do not have high expertise.
Gear box
•
It is clear that the domestic production of auto parts is still
limited in the variety of products; moreover, some high-tech
Starter-generator
spare parts have stopped production, leading to higher
Source: VIRAC, GSO
VIETNAM AUTOMOBILES MARKET REPORT
pandemic
so the domestic production cost of parts is higher than the
Other spare parts for motor vehicles
Other audio signal equipment
80.42%
the
production is still low, leading to a small scale of production,
Other equipment used by motor vehicles
9.68%
of
ASEAN countries. This is because Vietnam's automobile
Ignition wire sets and other harnesses used in
motor vehicles
3.21%
Because
2019 reached 10%, which is very low compared to other
Growth
Production of components and spare parts, 9M/2020
1.50%
2019.
production stalled, and market demand also decreased.
-200%
Source: VIRAC, GSO
1.37%
In the first 9 months of 2020, Vietnam's production of
14
import of auto spare parts every year to meet the demand
of domestic automobile manufacturing and assembling
industry.
1.3. Business Environment – Government policy
Important regulatory environment in Vietnam automobile industry, 2003 – 2020
Time
Event
Content
Cars with 7 or less seats (except passenger car business) and motorbikes of
2003
Change of registration fee
organizations and individuals in provinces are charged the vehicle first registration
fee of 5%.
•
2004
Increase
in
special
consumption tax
•
Approval for importing new
•
Increase special consumption tax from 5% to 24%
•
New CBU cars are allowed to be imported into Vietnam with 100% import tax
rate
CBU cars
2005
Increase in special consumption
tax
•
in
special
consumption tax
2006
•
2007
Increase
Reduction in import tax
3 times reduction in import tax
Increase special consumption tax from 24% to 40%
•
Increase special consumption tax from 40% to 50% for cars with less than 5
seats
•
7-seat car is only subject to 30% tax
•
Car import tax is reduced from 100% to 90%
Impact
Pushing the cost of buying a
car by 5-8%
Vehicle
decreased by 26%
Vehicle
VIETNAM AUTOMOBILES MARKET REPORT
15
consumption
decreased by 32%
Cars with less than 5 seats
will cost an extra 3,000 5,000 USD
When Vietnam joins the WTO, all types of CBU cars are reduced import tax in 3 Domestic
times from 90% to 80%, 70% and 60%
consumption
down
car
prices
cool
1.3. Business Environment – Government policy
Important regulatory environment in Vietnam automobile industry, 2003 – 2020
Time
Event
•
2008
Content
•
2 times increase in import
tax
•
Increase import tax for the first time from 60% to 70%, and the second to 83%
•
Increase in registration fees
•
Increase the registration fee from 10% - 15%
•
Amend special consumption •
Car excise tax is charged by cylinder capacity, rather than seats
tax law
2009
New registration fee
•
New excise tax goes into
New registration fee is 12%
effect
2011
car
prices
increased
•
The volume of imported
cars
increased
sharply
before the tax increase
Domestic car prices
increased
Increase the registration fee
bracket
•
Domestic
decision took effect
•
•
Impact
Tighten
the
imported
Increase the registration fee bracket from 10 - 15% to 10 - 20%
Domestic car prices
increased
vehicle
2014
Import tax reduction
Changing
2016
calculating
the
Import duties from ASEAN countries are reduced to 50%
method
excise
tax
of
on
imported vehicles. Import tax
reduction.
The calculation of excise tax changes from cost to wholesale price, i.e. cost of
goods plus shipping costs, advertising, sales and profitability of the business.
Reduce tax on cars imported from ASEAN to 40%
VIETNAM AUTOMOBILES MARKET REPORT
16
The amount of imported
cars surged
Domestic car prices
increased
1.3. Business Environment – Government policy
Important regulatory environment in Vietnam automobile industry, 2003 – 2020
Time
2017
Event
Content
• Tighten the imported vehicle
•
Decree 116 tightens the business conditions of automobile importers
• Support domestic car
•
In Decree 125, the import tax on automobile parts will be reduced to 0% if they
assembly enterprises
2018
meet the conditions set out by the government
Impact
The number of imported
cars fell sharply
Import tax reduction Decree
Reduce tax on cars imported from ASEAN to 0%. Passenger cars with 9 seats or less
116
Special
with a cylinder capacity of 2.0 liters or less will receive a 5% discount on the special
The number of imported
consumption tax is based on
consumption tax. Models with engines with a cylinder capacity of more than 2,500cc
cars plummeted
cylinder capacity
- 3,000cc are subject to a 5% increase in special consumption tax
takes
effect.
Promulgating the roadmap for the application of emission standards is issued for
cars in traffic and imported used cars.
2019
Decree No.16/2019/QD-TTg
•
For cars produced before 1999: level I
•
For cars produced between 1999 – 2008: level II
•
For cars produced after 2008: level II
•
For imported used cars: level IV
•
50% reduction in registration fees for domestically-produced or assembled
• Sustainable growth in
number of automobiles
• Reduce pollution
•
vehicles
2020
•
Decree 70/2020/ND-CP
•
Decree 109/2020/ND-CP
•
Decree 57/2020/ND-CP
•
consumption increased
Extension of the deadline for the payment of special consumption tax on
•
domestically produced and assembled cars till the end of 2020
•
domestically produced for the production, processing (assembly) of supporting
products
Imported cars had to cut
profits
to
increase
promotion to compete
Import tax rate of 0% for raw materials, supplies and components that cannot be
VIETNAM AUTOMOBILES MARKET REPORT
Automobiles
•
Domestic auto industry
was greatly supported
17
1.3. Business Environment – Government policy
Conditions for manufacturing and assembling enterprises:
Decree No. 116/2017/ND-CP dated October 17, 2017 providing for the conditions for production, assembly, import and provision of warranty and
maintenance services for all types of cars, effective from the date of signing.
Automobile production and assembly conditions:
Enterprises established in accordance with the law shall be granted certificates of eligibility for automobile production and assembly when they meet the following
conditions:
•
Infrastructure:
a) Enterprises must have legal rights to factories, assembly technology lines, welding lines, paint lines, product quality control lines and automobile test lines that meet
minimum requirements in Appendix I enclosed herewith;
b) Have an automobile warranty and maintenance facility owned by the enterprise, or leased by the enterprise, or under the authorized agent system of the enterprise
that satisfies the provisions of this Decree.
•
Persons in charge of techniques of automobile production and assembly lines must have a university or higher degree in mechanics and automobiles, and have at
least 5 years' experience in automobile manufacture and assembly.
•
Having sufficient human resources and plans to ensure occupational safety and sanitation in accordance with the law.
•
Satisfying the conditions of fire prevention and safety in accordance with the law on fire prevention.
•
Having documents on environmental protection for automobile production and assembly plants that have been approved by agencies in accordance with the law
on environmental protection.
Transition terms:
•
The operating automobile production and assembly enterprises may continue operating for 18 months from the effective date of this Decree. After this time,
automobile production and assembly enterprises must fully satisfy the conditions specified in this Decree.
VIETNAM AUTOMOBILES MARKET REPORT
18
1.3. Business Environment – Government policy
General provisions on automobile import business:
•
Only enterprises can be considered for granting a business license to import cars.
•
Enterprises are entitled to import cars after satisfying the conditions and being granted automobile import business licenses are specified in this Decree.
•
Automobile importers must comply with the regulations on automobile import management in this Decree and other relevant legal documents.
Conditions for car import business:
Enterprises established in accordance with the law shall be granted the automobile import business license when meeting the following conditions:
•
Have car warranty and maintenance facilities owned by the enterprise, or leased by the enterprise, or under the authorized agent system of the enterprise that
meet the provisions of this Decree.
•
There is a written certification or documents proving that the enterprise has the right to act on behalf of the foreign automobile manufacturer and assembly
enterprise to recall imported cars in Vietnam.
Transition terms:
•
The car import business will comply with current regulations until December 31, 2017;
•
From January 1, 2018, enterprises are only allowed to import cars after being granted a license to import cars according to the provisions of this Decree;
•
Regardless of the provisions specified at point a, Clause 2 of this Article, enterprises satisfy the conditions specified in this Decree and have the license for
automobile import business granted by the Ministry of Industry and Trade before December 31, 2017 is entitled to import cars from the effective date of the
License for import business.
VIETNAM AUTOMOBILES MARKET REPORT
19
1.3. Business Environment – Government policy
Do not test cars below Euro 4 emissions standards
•
From January 1, 2018, the Vietnam Registry Department stopped receiving the registration, granting technical safety certificates for cars manufactured, newly
assembled, or imported, using diesel fuel with unsatisfactory emissions standard Euro 4 and below. The reason is to follow the instructions of the Prime Minister in
Document No. 436 dated March 28, 2017, and of the Ministry of Transport on the implementation of the roadmap for applying emission standards for cars and
motorcycles.
•
Accordingly, from January 1, 2018, all new manufactured, assembled and imported cars must meet level 4 emission standards by the provisions of Decision No. 49
to be inspected and issued circulation certificate. For vehicles using diesel fuel, automobile importers, manufacturers, and assemblers must have import and
production plans to ensure the completion of customs procedures, registration before December 31, 2017. After this time if not completed, the vehicle must be reexported or exported.
Reduce special consumption tax for cars below 2.0L
•
According to the roadmap for adjusting the special consumption tax passed by the National Assembly at the 11th session of the 13th National Assembly. From
January 1, 2018, cars with 9 seats or less, equipped with engines below 1.5L will apply the special consumption tax of 35%.
•
Meanwhile, the special excise tax on cars equipped with engines that have a capacity of fewer than 2.0 liters will be 40%, a decrease of 5% compared to 2017. This
will partly affect the car prices from 2018.
VIETNAM AUTOMOBILES MARKET REPORT
20
1.3. Business Environment – Government policy
Auto part manufacturers in Vietnam are entitled to enjoy incentive policies offered by the Government in accordance to Decree 111/2015/ND-CP dated on 3rd
November 2015.
Some key incentive policies:
Corporate income tax
Import tariff
import
tariff
applied
Surface water/land rent
for
Provincial
Corporate income tax (CIT) is set
0%
at 10% for 15 years (compared to
machines/ equipment imported to
shall provide further incentives for
granted
standard CIT rate of 20%)
create fixed assets of the auto part
large
interest
projects
projects beside the Government’s
auto
People’s
part
Committees
Preferential credit policy
manufacturing
rent exemption/reduction policy.
VIETNAM AUTOMOBILES MARKET REPORT
21
Auto part manufacturers shall be
loans
rates
at
preferential
from
the
Government’s funding resources
1.3. Business Environment – Government policy
Changing the regulations on the price to calculate the special consumption tax on imported vehicles under 24 seats.
❖ Before January 1st, 2016:
➢ Producers: Price to calculate the special consumption tax = Factory price (including production and sales costs + profit)
➢ Exporters: Price to calculate the special consumption tax = CIF price + import tax
❖ Since January 1st, 2016: According to Decree No.108/2015/ND-CP, the price to calculate the special consumption tax on automobile is:
➢ Producers: Price to calculate the special consumption tax = Factory price (including production and sales costs + profit)
*The factory price is not lower than 105% of the price of commercial retailers.
➢ Exporters: Price to calculate the special consumption tax (wholesale price) = Cost of goods sold + costs (shipping, advertising, sales) + profit
*In which the wholesale price is not lower than 105% of the cost of goods sold.
With the calculation of special consumption tax based on the wholesale price of importers will help curb the commercial fraud and the situation of transferring price
through marketing, product promotion costs or declaring the business income tax to pay less (the special consumption tax for automobile is 45-60% while business
income tax is only 22% of profits). At the same time, this provision would cause the price of imported automobiles to increase by at least 5% of the current price,
which is advantageous for companies distributing locally assembled vehicles, also bringing long-term benefits due to the development of domestic production.
Besides, in 2018, the tax rate on imported CBU automobiles will be 0%, while the import tariff on component still remain 20-25% (depending on components and the
import market), keeping the current calculation of special consumption tax will cause the amount of taxes paid on CBU vehicles to fall sharply, making them be more
advantages than domestically produced items. Therefore, the tax rate must be in line with the CKD parts for businesses to maintain local production, instead of
collecting foreign currencies to import.
VIETNAM AUTOMOBILES MARKET REPORT
22
1.3. Business Environment – Government policy
Auto part manufacturers in Vietnam are entitled to enjoy incentive policies offered by the Government in accordance to Decree 111/2015/ND-CP dated on 3rd
November 2015.
Some key incentive policies:
Corporate income tax
Import tariff
import
tariff
applied
Surface water/land rent
for
Provincial
Corporate income tax (CIT) is set
0%
at 10% for 15 years (compared to
machines/ equipment imported to
shall provide further incentives for
granted
standard CIT rate of 20%)
create fixed assets of the auto part
large
interest
projects
projects beside the Government’s
auto
People’s
part
Committees
Preferential credit policy
manufacturing
rent exemption/reduction policy.
VIETNAM AUTOMOBILES MARKET REPORT
23
Auto part manufacturers shall be
loans
rates
at
preferential
from
the
Government’s funding resources
1.3. Business Environment – Government policy
Roadmap of applying special consumption taxes (SCT) for automobiles
•
Changes in import tax on CBU in some countries: (1) According to the
ASEAN Trade in Goods Agreement (ATIGA), which is effective from
January 1, 2018, the tax on cars imported from other countries in the
ASEAN region will decrease from 30% to 0%. (2) From December 20,
No. Segment
1
Above 2.0L to ≤ 2.5L
20-24T dump trucks are subject to 20% and 30% tax respectively.
Above 2.5L to ≤ 3.0L
ASEAN-China trade commitment (ACFTA) in 2018:
4.0 ≤ 5.0L
Cars of 30 or more specialized for airport use were subject to a tax of
> 6.0L
50% tax in 2018.
racing cars, sports cars were taxed 5% and in 2018 decreased to 0%.
2
4
50%
55%
130%
150%
10 seats to under 16 seats
From 16 seats to under 24
seats
Passenger cars
30%
15%
15%
10%
15%
15%
20%
> 3.0L
5
60%
110%
60%
2.5 ≤ 3.0L
and septic tanks are immediately subject to 0% tax. Other types are
•
40%
≤ 2.5L
Crane trucks, drilling cranes, firefighters, concrete mixers, road cleaning,
subject to 50% tax in 2018.
35%
45%
90%
5.0L ≤ 6.0L
3
Cars and other motor vehicles designed mainly for golf players, small
50%
40%
3.0L ≤ 4.0L
The import tax rate for cars from China is effective according to the
20% until 2018. Passenger cars designed from 6-18 tons are subject to
•
45%
From 1.5L to ≤ 2L
trucks under 5T are subject to 70% tax, an increase of 2%; 10-20T and
•
Vehicles under 10 seats
≤ 1.5L
2015, the import tax on trucks will increase according to Circular 163:
•
July 1st, 2016
Since
Current SCT – December January 1st,
31st, 2018
2018
25%
Electric cars
The tax reduction roadmap has been approved: Vietnam has signed a
Under 9 seats
25%
15%
free trade agreement (CPTPP), committing to gradually reduce the
From 10 seats to 16 seats
15%
10%
import tax on CBU cars to 0% after 7-9 years. Vietnam and the EU have
From 16 seats to 24 seats
Carrying both people and
cargo
10%
5%
10%
10%
also signed a free trade agreement (EVFTA) committing to gradually
reduce the import tax on CBU cars to 0% after 9-10 years. The price of
imported CBU cars will drop from 1.2 to 1.5 times, helping to stimulate
6
shopping demand.
Vehicles powered by
biofuels
7
Motorhome vehicles
8
Gasoline combined electrical
energy powered vehicles
(fuel not exceeding 70%)
VIETNAM AUTOMOBILES MARKET REPORT
24
50% of the tax on same type vehicles
60%
70%
75%
70% of the tax on same type vehicles
Source: VIRAC summarized from Ciircular No. 165/2014/TT-BTC
1.3. Business Environment – Government policy
On November 16, 2017, Decree No.125/2017/ND-CP was issued amending and supplementing a number of articles of Decree No. 122/2016/ND-CP dated
September 1, 2016 of the Government on the Export Tariff, Preferential Import Tariff, List of Goods and Absolute Tariff, Mixed Tax, and Non-Quota Import
Tax. The Decree took effects from January 1, 2018.
Car types
9-seat-or-less
passenger cars
Under-16-seat
used
passenger
cars
(cylinder capacity
under 1,000cc)
Taxes rate
Cylinder capacity under 1,000cc
Absolute tax at 10,000 USD/unit
Cylinder capacity between 1,000 and 2,500cc
Used car price multiply tax rate of a new car of the same type + 10,000 USD
Cylinder capacity above 2,500cc
Used car price multiply tax rate of a new car of the same type + 15,000 USD
SUVs, sport cars excluding vans (cylinder capacity above 1,000cc)
10-to-15-seat cars
Mixed tax of 200% or 150% + 10,000 USD per unit
(based on the lowest rate)
Cylinder capacity under 2,500cc
Used car price multiply tax rate of a new car of the same type + 10,000 USD
Cylinder capacity above 2,500cc
Used car price multiply tax rate of a new car of the same type + 15,000 USD
16-seat-or-more passenger cars
Remain unchanged
On February 21, 2019, the Government issued Decree No.20/2019/D-CP amending and supplementing a number of articles of Decree No.140/2016/ND-CP
dated October 10, 2016 of the Government on registration fee.
In which, there are provisions relating to registration fee applicable to cars:
From April 10, 2019, pick-ups and vans will have to pay the first registration fee equal to 60% of the initial fee of cars with less than 9 seats. Thus, with the current
registration fee of 10% for cars of less than 9 seats, registration fee for pick-ups applied from April 10, 2019 will be 6%, increasing 3 times higher than the previous 2%.
Particularly in Hanoi, the registration fee for pick-ups and vans will be higher than other localities, at 7.2% due to the current registration fee of passenger cars of less
than 9 seats at 12%.
The pick-ups truck is considered a multipurpose vehicle with tonnage of less than 1.5 tons, suitable for both city and rural use thanks to its ability to carry people and
cargo at the same time, so businesses import complete built-up ones to Vietnam for distribution. In particular, this is a car with comfortable equipment and modern
technology but has the advantage of low registration fee (only 2%) making this car the choice of many people.
VIETNAM AUTOMOBILES MARKET REPORT
25
1.3. Business Environment – Government policy
In 2020, due to Covid-19’s impacts, domestic automobile industry was benefiting from three recently government incentive policies:
(1) 50% reduction in registration fees for domestically-produced or assembled vehicles in effect from June 28 to the end of 2020.
(2) Allow automakers who met the requirements of outputs to enjoy zero import tariffs for automobile components which could not have been produced
domestically, helps cutting production costs by 2-2.5%.
(3) Extension of the deadline for the payment of Special Consumption Tax on domestically produced and assembled cars till the end of 2020.
➔ These policies would help lower production and service costs, making cars more affordable to more people.
On February 5, 2020, the Government loosen conditions for importing cars by issuing Decree No.17/2020 – on adjustments and supplements to Government
Decree No.116/2017 stipulating regulations on car manufacture, assembly, imports and warranty services. Automobile importers in Vietnam will no longer have
to obtain a Vehicle Type Approval (VTA) certificate from authorities in exporting countries, making it easier for them to import cars into the country.
Decree No.17/2020 has also relaxed its rules on clearance procedures for imported cars.
Overall, Decree No.17/2020 helps reduce the amount of time needed for the clearance process and lower the costs for inspections, testing and storage for
automobile importers.
➢ For imported cars: To annul regulations on type quality certificates specified in Clause 11, Article 3 of Decree 116.
➢ For automobile manufacturing and assembling enterprises:
• To annul the regulation that there must be persons in charge of automobile production and assembly lines having university or higher degree in the mechanics
and automobile disciplines and have experience in automobile manufacture and assembly. at least 5 years as prescribed in Clause 2, Article 7 of Decree 116;
• To annul the regulations on having sufficient manpower and plans to ensure occupational safety and sanitation in accordance with the law on occupational
safety and sanitation in Clause 3, Article 7 of Decree 116;
• To annul the regulations on the satisfaction of fire prevention and fighting safety conditions and fire-fighting plans in accordance with the law on fire prevention
and fighting in Clause 4, Article 7 of Decree 116.
VIETNAM AUTOMOBILES MARKET REPORT
26
1.3. Business Environment – Trade Agreement
ASEAN free trade area (AFTA) – Import taxes procedure:
2013 – 60%
2014 – 50%
2015 – 50%
2016 – 40%
2017 – 30%
2018 – 0%
Non-tariff barriers were set up to protect the domestic auto industry. Facing fierce competition from imported cars, especially when the tax rate for cars imported
from ASEAN is reduced to 0%, the Government has issued a number of policies aimed at protecting the domestic automobile manufacturing and assembly industry.
For example, Decree No.116/2017 tightens business conditions for automobile importers; circular 03/2018 providing for technical safety quality inspection and
environmental protection for imported cars; Decree No.125/2017 on the reduction of import tax on car components with terms of annual output is expected to
support domestic car manufacturers.
EU-Vietnam free trade agreement (EVFTA)
In June 2019, the EU-Vietnam Free Trade Agreement (EVFTA) was signed after 9 years of negotiation. According to the roadmap, EVFTA can be ratified by the EU in
the first half of 2020. According to the regulations, the agreement takes effect 2 months later or at a time agreed by the two sides.
EU
Goods
Vietnam
Base tax rate
Route
Base tax rate
Route
Tractor (8701)
• 0% with agricultural tractors
• 16% for tractors
A
5-30%
B10
Bus (8702)
10-16%
B7
70%
5% for vehicles weighted 6-18 tons
B10
Car (8703)
10%
B7
78% for vehicles under 3,000 cc
74% for vehicles over 3,000 cc
15% for specialized vehicles
B10
B9
B9/B10
Truck (8704)
10-22%
3.5% for dedicated trucks
B7
A
15% for vehicles under 3,000 cc
65% for vehicles weighted under 5 tons
0% for vehicles weighted over 45 tons
B10
B10
A
Auto spare parts (8708)
3-4%
A
5-25%
B7
VIETNAM AUTOMOBILES MARKET REPORT
27
1.3. Business Environment – Trade Agreement
Meaning of symbols:
•
A: The base tax will be eliminated as soon as the agreement comes into force
•
B7: The base tax is eliminated after 8 regular reductions, once a year, starting from the year the agreement comes into force.
•
B9: The base tax is eliminated after 10 regular reductions, once a year, starting from the year the agreement comes into force.
•
B10: The base tax is eliminated after 11 regular reductions, once a year, starting from the year the agreement comes into force.
The Government maintains a policy of protecting the auto industry when joining EFTA. Looking at the roadmap of tax cuts on both sides of possible auto
goods, Vietnam is implementing a policy of protecting the automobile manufacturing and assembly industry, with a high base tax rate, and an extended protection
period.
VIETNAM AUTOMOBILES MARKET REPORT
28
1.3. Business Environment – Automobiles market features
Number of automobiles manufacturing and assembling
enterprises, 2014 – 2019
Number of labors in automobiles industry, 2014 – 2019
35,000
100
32,564
30%
26.92%
90
25%
80
70
17.02%
60
25,000
17.11%
15%
20,000
12.12%
50
10%
40
0%
20
10
-
-5.45%
55
52
2014
2015
-5%
66
74
76
89
2016
2017
2018
2019
Number of enterprises
Growth
50%
20,302
15,000
14,503
17,937
16,284
30%
20%
-10%
10,000
5,000
12.28%
5.75%
15.1%
10%
10.15%
0%
-1.67%
-
-10%
2014
Source: VIRAC, GSO
40%
17,638
5%
2.70%
30
60.4% 60%
30,000
20%
70%
2015
2016
Number of labors
2017
2018
Growth
2019
Source: VIRAC, GSO
The number of enterprises operating in the field of manufacturing and assembling domestic cars in 2019 increased by 17.11% compared to 2018,
reaching 89 enterprises.
•
The number of automobile manufacturing and assembling enterprises in the past year has increased significantly, due to the fact that the Government has
had policies and decrees to develop the domestic automobile industry. However, production technology is still basic, the localization rate (refer to page
No.34 and 35) is still quite low compared to other countries in the region.
•
In addition, domestically produced cars also have to compete with imported cars from other countries in the ASEAN region (Thailand, Indonesia, ...) as prices
for imported cars are relatively lower than that of domestic ones.
The domestic automobile industry is on the rise, the number of automobile manufacturing and assembling factories has continuously increased each
year, leading to the great attraction of the industry to the workforce. In 2019, there were more than 32 thousand employees in the field of automobile
production and assembly, up to 60.4% compared to 2018. The highly trained workforce has gradually met the needs of the domestic market.
VIETNAM AUTOMOBILES MARKET REPORT
29
1.3. Business Environment – Automobiles market features
USD million
Revenue of automobile manufacturing and assembling
industry, 2014 – 2019
USD million
16,000
120%
14,000
109.3%
100%
12,000
60%
8,000
60%
52.7%
40%
8.5%
2,000
2,490.6
3,811.2
5,599.6
6,622.4
2013
2014
2015
2016
Revenue
40%
35.5%
15,000
30%
27.6%
10,000
10%
20%
18.3%
4,000
50%
20,000
20%
46.9%
6,000
-7.6%
6,121.1
6,638.8
2017
2018
0%
13,892.4
-20%
-0.5% 0%
5,000
0
2019
8,095.4
12,365.6
16,755.3
2014
2015
2016
Revenue
Tăng
trưởng
Growth
*Exchange rate: USD/VND = 23,230
•
25,000
80%
10,000
0
Revenue of automobile wholesaling and retailing,
2014 – 2019
Source: VIRAC, GSO
*Exchange rate: USD/VND = 23,230
-10.9%
14,932.2
19,053.4
2017
2018
-10%
18,954.2
-20%
2019
Tăng
trưởng
Growth
Source: VIRAC, GSO
Revenue from car manufacturing and assembly activities recorded strong growth in 2019. This is an impressive growth in the period of 2014 - 2019 thanks to
the support and promotion of domestic automobile production along with that is the rise of major car manufacturers with domestic production and assembly
lines such as THACO, Toyota, VinFast, etc.
•
However, the car wholesale and retail industry saw a slight decrease in revenue of 0.5% compared to last year, reaching USD 18,954.2 million. The
reason is that the volume of cars consumed is not increased significantly in addition to the decrease in car prices due to the impact of the reduction
of import tax on CBU from some regions, causing the car price to drop overall.
VIETNAM AUTOMOBILES MARKET REPORT
30
AUTOMOBILES SUPPLY CHAINS
Tier-3
suppliers
Nhà cung cấp cấp 3
Tier-2
suppliers
Nhà cung cấp cấp 2
•
138 suppliers
•
5 spare parts manufacturers
•
178 other parts manufacturers
•
61 motorbike spare parts suppliers
•
50 motorbike and automobile spare parts suppliers
•
18 automobile spare parts suppliers
•
277 other parts suppliers
•
Tier-1
suppliers
Nhà cung
cấp cấp 1
•
21 assembling OEMs
•
5 Japanese OEMs
•
2 USA OEMs (GM, Ford)
177 Japanese suppliers
•
1 German OEM (MBV)
•
136 Vietnamese suppliers
•
Vietnamese and other country
•
57 Taiwanese suppliers
•
14 Korean suppliers
•
The rests from USA, Germany, Malaysia, etc.
•
Simple mechanical automobile parts can be supplied by local SMEs
•
Complicated and high-tech automobile parts are manufactured by FDI
•
83 suppliers
OEMs
OEM
lắp ráp
OEMs
•
enterprises for export
Simple spare parts and assemblies
•
CKD automobiles assembling
such as chairs, batteries, bulky plastic
•
Production procedure: welding,
details, etc.
painting, assembling, checking
Source: MOIT, ASEANSC
VIETNAM AUTOMOBILES MARKET REPORT
31
1.3. Business Environment – Automobiles market features
Vietnam level of participation in global automobiles
4.0 value chain
Value added
Vietnam
participation
3.0 value chain
Research
Design
Auto parts
manufacturing
Assembling
Marketing
Others
Source: VIRAC, ASEANSC
According to World Bank, Vietnam's participation in the global value chain is mostly the last stage of assembly, and this stage always has the lowest share of
value-added in the value chain. Moreover, when the global value chain moves to the 4.0 value chain, the value added in assembly will be narrower.
However, with the Government's support for domestic auto assemblers, Hyundai Thanh Cong, Truong Hai and VinFast are expected to create a triangle for the
development of Vietnam's auto manufacturing industry.
VIETNAM AUTOMOBILES MARKET REPORT
32
1.3. Business Environment – Automobiles market features
•
Due to the Price Appraisal Center – Ministry of Finance, until 2020, the cost of producing cars in Vietnam is about 20% higher than that of Thailand and
Indonesia: After 25 years of development, Vietnam's automobile industry is still extremely small and weak, not only in comparison with major manufacturing centers
in the world but also with other regional countries.
•
There are about 20 large domestic and foreign assemblers. Domestic production only meets about 60-70% of domestic demand, and this number is on the
downward trend in recent years due to increasing competition from imported vehicles.
•
The weakness of the auxiliary component manufacturing industry and the lack of uniformity in the transport infrastructure is the reason for the slow
development of the automobile industry in Vietnam:
➢ Vietnam's automobile industry still depends on imported spare parts, so it is only involved in assembly and distribution of cars in the domestic market.
➢ As a result, domestic manufacturers have to bear the cost of packaging, logistics and import duties on components. This leads to a 20% higher cost of
automobile production in Vietnam than Thailand and Indonesia.
➢ The number of Vietnam's automobile manufacturers in 2019 is only about 89, much less than other ASEAN countries.
➢ One of the reasons that make the automobile industry in Vietnam weak is the fact that domestic firms have not yet cooperated, associated and specialized
between automobile assembly and production with production of spare parts and components.
➢ Locally-produced products contain very low technology content including tubes, automobile tires, seats, mirrors, glasses, wires, batteries, plastic products.
• Tier-1,2,3 suppliers has not been able to cooperate with the car manufacturers: Many domestic supporting companies cannot become partners with car
manufacturers because the prices are not competitive compared to imported sources since Vietnam's car output is still low, making suppliers unable to
invest in machinery, equipment, technology, and people with such a small market size. Besides, products requiring high technical requirements, the quality of
the domestic supplier cannot meet the requirements, and lack of supplier network.
•
Opportunities for the Vietnamese auto parts production market:
➢ Vietnam is facing the greatest opportunity to become a new manufacturing hub in the world. Manufacturing enterprises continue to move out of
China due to rising costs; trade conflicts with the United States, and manufacturers' strategies to minimize dependence on a single market, especially
after Covid-19.
➢ The CBRE Vietnam report shows that tier-1 suppliers are expanding rapidly in the Vietnam automobile market, such as Bosche, Schaeffler, and
Mitsubishi Motors. Industrial complexes located near ports and car manufacturers will attract new investors. Northern provinces such as Vinh Phuc,
Hung Yen, Hai Phong, and Hai Duong are expected to become the focus of investment in the future.
VIETNAM AUTOMOBILES MARKET REPORT
33
1.3. Business Environment – Automobiles market features
Localization rate of countries in Asia, 2019
Localization rate in Vietnam’s car industry remains low compared to
Asean
55%
Malaysia
regional peers for 4 main reasons:
45%
65%
Indonesia
70%
Thailand
0%
importing from neighboring countries. Car sales in Vietnam
reached 385,600 units last year (2019), but the size of the
Indonesia and Thailand market was 2.6 times bigger and that of
20%
10%
Malaysia, 1.6 times. For October 2020, the total sales volume of
the members of the Vietnam Automobile Manufacturers’
90%
10%
20%
30%
40%
Domestic
50%
Small car sale volume: Due to low vehicle demand, investment
in technology for localization is much more expensive than
30%
80%
Vietnam
•
35%
Association (VAMA) was 204,144 units, a decrease of 17% in
60%
70%
80%
90%
100%
comparison to October 2019.
Import
Source: VIRAC, VAMA
•
Heavy reliance on imported raw materials: about 80-90 percent of the main raw materials used to manufacture components are still imported. As a result,
companies are required to import approximately USD 2 to 3.5 billion in components and parts for vehicle manufacturing, assembly, and repair each year.
•
Under-developed local supporting industries: the local automobile industry has not been able to invest in core and high technology products such as engine
production and transmission systems. Localized parts are mostly of low technology products such as tires, seats, mirrors, glasses, cable harnesses, batteries, and
plastic products.
•
A latecomer in the automobile industry: Vietnam’s automobile industry only got its proper start in the 2000s, 20 or 30 years after Thailand or Indonesia. This is
one of the reasons attributable to the lack of an ecosystem to support the automobile industry in Vietnam.
VIETNAM AUTOMOBILES MARKET REPORT
34
1.3. Business Environment – Automobiles market features
Localization rate of major vehicle types, 2020
Plan to increase the ratio of domestic manufacturing value to automobile
Production due to Decree No.1211/QD-TTg
Under-9 passengers vehicle
2020
2025
2035
9-passenger vehicles
30% - 40%
40% - 45%
55% - 60%
10-or-more passenger vehicles
35% - 45%
50% - 60%
75% - 80%
Trucks
30% - 40%
45% - 55%
70% - 75%
Special purpose vehicles
25% - 35%
40% - 45%
60% - 70%
53%
10-or-more passengers vehicle
Under-7 tons truck
0%
10%
20%
30%
40%
50%
Source: VIRAC, ASEANSC
VIETNAM AUTOMOBILES MARKET REPORT
Source: VIRAC, Ministry of Industry and Trade
35
1.3. Business Environment – Automobiles market features
Development of automobile industry in some ASEAN countries
Vietnam
Philippines
MAINTENANCE
The size of the market is small, low
Description
competitiveness of the production
cost compared to imported vehicles
• High production costs
• Low localization rate
Problems
• Low production rate
Indonesia
Thailand
DEVELOPMENT
MATURE
Thanks to the expansion of the
market, the competitiveness is on
the same level as that of imported
cars from other countries
Accelerate technical know-how,
compete with vehicles of other
countries in foreign markets.
• Low tech
• High labor cost
• Low capacity
• Manpower shortage
Promote expansion of market size
Investment promotion (increase production capacity - localizationrate)
Essential support from
the government
Commercial promotion
Domestic car protection/
narrowing gap of
Promoting investment
production costs
in products with high
added value
VIETNAM AUTOMOBILES MARKET REPORT
36
1.3. Business Environment
Ninh Binh
Vinh Phuc
Hai Phong
Hanoi
Vietnam
Da Nang
autombile
industry consists of less
than 10 key players that
already
Quang Nam
had
their
own
factories in Vietnam. These
factories located at some
big industrial parks in the
North
and
Central
of
Vietnam with brands: TC
Motor, THACO and a new
Binh Duong
Dong Nai
Can Tho
VIETNAM AUTOMOBILES MARKET REPORT
37
Vietnamese brand VinFast.
1.3. Business Environment – Hai Phong Industrial complex
Hai Phong
VIETNAM AUTOMOBILES MARKET REPORT
38
VINFAST’S AUTOMOBILE FACTORY
1.3. Business Environment – Hai Phong Industrial complex
Hai Phong transport & logistics infrastructure
Personal income
tax
•50% reduction to the normal rate
for lifetime of the project for
locals and expats.
•(Other industrial zones: 0%
reduction).
Hai Phong – Hanoi highway
The 105.5km highway shortened traffic time between the two cities from 4 hours to
1.5 hours. Passage of 18-ton truck and 40-feet container becomes accessible
Cat Bi international airport
The 105.5km highway shortened traffic time between the two cities from 4 hours to
1.5 hours. Passage of 18-ton truck and 40-feet container becomes accessible
Tan Vu – Lach Huyen Ocean bridge
Connecting Hai Phong city with Lach Huyen Int‘l Deep Water Port. Constructed as the
Import – export
tariff
•Goods exempted duty are:
•Goods from free trade zones
exported.
•Goods imported into free trade
zones and only used in free trade
zones
longest bridge with 15km in-length in Vietnam
Lach Huyen international deep water port
Constructed with 14m in water depth, 2 berth to host cargo vessels with loading
capacity of 100,000 tons. Traffic time to USA and EU is shortened by about 1 week
Dinh Vu – Cat Hai economic zone indices
VAT tax
•Goods traded between foreigners
using in free trade zones has been
exempted VAT tax;
•Goods & services sold in free
trade zones has been applied 0%
VAT tax.
VIETNAM AUTOMOBILES MARKET REPORT
39
Area
Population
22,540 ha
310,000
Tariff zones
Port system
12,932 ha
1,046 ha
39
1.3. Business Environment – Hai Phong Industrial complex
VinFast industrial complex:
The project located on Dinh Vu – Cat Hai industrial zones, with an area of 335 ha.
Designed capacity of VinFast industrial complex
1st stage:
250,000 units per
year
250,000 units per
annum;
2nd stage:
500,000 units per
annum
An automobile manufacturing
zone
Electrical motorbike
VinFast industrial complex
An electrical motorbike
manufacturing zone
3,000 units per
Electrical bus
Automobile
An operation zone
1st stage:
annum;
2nd stage:
500,000 units per
annum;
Expansion plan:
1 million units per
annum.
An electrical bus
manufacturing zone
Source: VIRAC, VinFast
Automobile manufacturing zone contains a body shell workshop, an
An auxiliary industrial zone
automobile paint workshop, an engine workshop, an assembly
workshop and an auxiliary workshop. Key components such as engines
and chassis will be purchased from leading European and US designers.
A trainning center
The project is invested by big corporations such as Bumper, Aapico,
Lear, ZF to invest in large-scale factories to manufacture and assemble
engines, front and rear axle assemblies, to manufacture, assembling car
A research and development
institute.
seats, manufacturing car front bumper, rear bumper, stamping and
welding frame details, assembling batteries for electric cars and
Source: VIRAC, VinFast
VIETNAM AUTOMOBILES MARKET REPORT
motorcycles.
40
40
1.3. Business Environment – Hai Phong Industrial complex
Stamping workshop
Area (m2)
Capacity
VinFast industrial complex
Manufacturing
growth rate
Body welding
workshop
Painting
workshop
50,000
100,000
25,000
16 units per min
38 units per
hours
More than 800
units per day
21.88%
14.4%
With the process monitoring
by technology of SCHULER
Company (Germany), the
data are collected online by
equipment acompanying
with assemble lines. By
continuously checking actual
parameters, production
status and technical issues
are quickly identified and
required measures
equipment is promptly set
up and implemented to
ensure the quantity and
quality of products. In
addition, smart diagnostics
at workshop works like black
boxes on an airplane:
Specific data are selfdirected
continuous storage. In case
of a breakdown or failure, a
retrospective analysis can be
performed to confirm
identifying the cause, for
example software bugs or
machine parts or lines.
VinFast body
welding
workshop.
designed and
supplied by
leading partners
such as FFT, EBZ,
HIROTEC, is
equipped with
about 1200 ABBmade robots.
This is modern
and fully
automatic body
welding machine
in Vietnam and
Southeast Asia..
VIETNAM AUTOMOBILES MARKET REPORT
41
The EcoSmart
VEC intelligent air
management
system by Dürr
comes from the
Germany,
fully automatic,
delivering power
on demand
through realtime recording
in production.
This technology
significantly
reduces the
amount of air
and electricity
consumed when
drying new
vehicles
paint.
Engine
workshop
Assembly
workshop
Auxiliary
workshop
50,000
200,000
20,000
The workshop is
designed and
supplied by
leading partners
such as GROB,
Thyssenkrupp,
AVL,
MAG, using the
latest in precision
mechanical
technology to
machine the
Engine heads,
Engine body and
Shaft
engine
crankshaft.
The line is
designed and
supplied by a
leading supplier
Eisenmann, with
highly automated
conveyors and
self-controlled
vehicles that are
interlocked
together. In
addition, the
assembly stages
are equipped
with modern
Atlas Copco
torque clamps
linked
production lines
ensure that the
tightening force
of each assembly
is controlled and
retrievable
at all times.
Auxiliary
workshop
includes paint
area of plastic
details (front
bumper, rear
bumper) with
friendly paint
technology
environment
provided by
supplier Dürr. In
addition the
workshop also
has
tire finishing area
and capacity to
expand for future
molding of
plastic parts.
41
6.11.3. Business Environment – Hai Phong Industrial complex
• Tax policy is not stable and synchronous;
• Favorable geographical location: Hai Phong has the
largest seaport in the North, an important trading hub
• Transport and supply costs for auto manufacturers are
between the North and regional countries. In addition,
still high due to limited localization and low
Hai Phong Industrial Park has a full range of traffic
types,
maximum
support
for
Logistics
for
competitiveness of foreign manufacturers.
the
• Lack of high-skilled labor in automobile industry;
automotive industry.
• Enjoy the policy of promoting transport infrastructure
and economy. Dinh Vu - Cat Hai Industrial Park is one
of the 16 economic zones that enjoy the most
incentives.
Hai
Phong's
integration
capacity
is
S
W
enhanced with a series of technical infrastructure
works.
• Hai Phong is actively implementing policies to support
businesses to expand investment, prioritizing the
development of the automobile and supporting
industries to attract major car manufacturers, typically
• Domestic car production is still low, and the high rolling
O
T
VinFast.
• Program
costs make cars a luxury item, and demand is not high.
• The quantity of domestically produced components and
accessories is small, less diversified and of poor quality,
and difficult to compete with ASEAN countries such as
to
support
investment
in
technical
Thailand and Indonesia.
infrastructure of industrial clusters, guaranteed by the
• Difficulties in mobilizing resources, especially capital,
budget of Hai Phong city for the period 2019 - 2025
human resources and technology to establish a
concentrated automobile manufacturing and assembly
industrial park
VIETNAM AUTOMOBILES MARKET REPORT
42
42
1.3. Business Environment – Quang Ninh Industrial complex
Major Industrial Parks in Quang Ninh
Name
Dong Mai Industrial park
Total
area (ha)
160
Quang Ninh
Major industry
Building materials manufacturing,
Textile, etc
Hai Yen Industrial park
182.4
Home furniture manufacturing, etc.
Cai Lan Industrial park
242.8
Wooden furniture manufacturing,
Shipbuilding, etc
Viet Hung Industrial park
301
Auto parts manufacturing, Mechanical
engineering, etc
Hoanh Bo Industrial park
681
Electronic manufacturing, Consumer
goods industry, etc
Phuong Nam Industrial park
709.1
High-tech industry
Hai Ha Industrial park and sea
port
4,988
Seafood processing industry
Dam Nha Mac Industrial and
service park
3,710
Shipbuilding, Logistics service, etc
Source: VIRAC, Kland
Quang Ninh is located in the North-east of Vietnam. To the north, it is adjacent to
China with 118.8 km border and Gulf of Tonkin to the east. Quang Ninh has a
geostrategic position in terms of politics, economics, military and foreign affairs. It is
located in the Vietnam-China economic cooperation area with ​”Two Corridors and
One Belt”, inter-regional cooperation of extended Gulf of Tonkin, ASEAN-China
connection point and Nam Ninh-Singapore economic corridor.
VIETNAM AUTOMOBILES MARKET REPORT
43
1.3. Business Environment – Quang Ninh Industrial complex
Viet Hung Industrial Park is invested in Ha Long City with the scale of 300 hectares. The
Besides, Vietnam’s conglomerate Vingroup also
complex plays an important role in implementing the policy of attracting projects of
announced a plan to invest in an industrial
processing industry, manufacturing, using modern technology. It’s the result of cooperation
production complex south of Luc Lam River at
between Quang Ninh province and Thanh Cong Group to build an environmentally friendly car
Mong Cai border with a capital scale of more than
factory. The complex is built on a total area of 340 hectares, with a strategic location, located right on
$147.8 million in order to manufacture spare parts
the banks of Cua Luc Bay, convenient for both domestic and international trade. It’s expected to
and accessories for cars and other motor vehicles.
attract many businesses in the automotive supporting industry, manufacturing components and spare
parts.
•
The project is divided into two investment phases.
Phase 1 (2020 - 2022) will focus on investing in
building production lines for auto components,
accessories and spare parts with an expected
capacity of 500,000 sets/year. Phase 2 (2022-
2025) expands auto parts factories, and increases
the capacity to 1,000,000 sets/year.
•
DEEP C invested in two industrial zones in
Quang Yen town – Bac Tien Phong and Nam
Tien Phong IZs, also known as DEEP C Quang
Ninh – on a total area of 1,680 ha. In DEEP C’s
investment plan, a 150,000 m2 ready-built factory
space at DEEP C Quang Ninh is scheduled to be
built and put into operation next year.
THANH CONG – VIET HUNG AUTOMOTIVE SUPPORTING INDUSTRIAL COMPLEX MAP
VIETNAM AUTOMOBILES MARKET REPORT
44
1.3. Business Environment – Quang Ninh industrial complex
Viet Hung Industrial Park
Infrastructure investors
Cienco 5
Location
Viet hung commune, Ha Long city, Quang Ninh province
Scale
Total area base on Master plan: 301 ha
•
Decision No.519/TTg by the Prime Minister on 06/8/1996 to approve the establishment of Viet Hung industrial park.
•
Document No.727/TTg-CN by the Prime Minister on 15/5/2006 to set up Viet Hung industrial park.
•
Decision No.2416/QD-UBND of Quang Ninh Provincial People's Committee on 17/8/2006 to approve constructing and
servicing infrastructure Viet Hung Industrial park in Ha Long City.
Documents
•
Document No.1154/BXD-KTQH by the Ministry of Construction on 28/07/2004 to approve plans of Viet Hung industrial
park.
•
Decision No.330/QD-UBND of Quang Ninh Provincial People's Committee on 26/01/2007 to approve detailed construction
planning ratio 1/20000 of Viet Hung industrial park.
Land lease period
Contents of land use according
to Master plan approval
documents
Land lease method
50 years
•
Industry assembly
•
Manufacturing engineering, interior vessel;
•
Construction material production,
•
Processing agricultural products, aquatic products, consumer goods production;
•
Investors are allowed to propose of adjusting industrial sectors plan to match practical
Land lease
VIETNAM AUTOMOBILES MARKET REPORT
45
1.3. Business Environment – Quang Ninh industrial complex
Dong Mai Industrial Park
Viglacera Infrastructure Investment Development Company – The Vietnam Glass and Ceramic for Construction
Infrastructure investors
Corporation
Location
Planned total area and current status
Quang Yen town, Quang Ninh province
•
Planned total area: 160 ha
•
Current status of Ip: Technical infrastructure works outside the fences of the industrial zone such as the power supply
system, water supply and drainage system, traffic system, communication system... have been invested for
construction. Currently, investors have been implementing construction site clearance and infrastructure investment.
Approved document
•
The industrial zone belongs to the Planning for developing Industrial Zones in the whole country until 2020 approved
by the Prime Minister in Decision No 1107/QD-TTg of August 21st, 2006.
Legal documents
•
Established under the Decision No 2276/QD-UBND of July 14th, 2008 of Quang Ninh Provincial People’s Committee.
Decision on planning approval
Detailed construction planning at 1:2,000 scale for Dong Mai Industrial Zone was approved by Quang Ninh Provincial
People’s Committee in Decision No 1153/QD-UBND April 17th, 2008.
Land lease period
50 years
•
Dong Mai Industrial Zone is oriented to become the industrial zone that would not make the environment polluted
with the encouraged investment sectors: Mechanical engineering, Transport equipment assembly, Construction
material manufacturing, Interior architecture, Precision machining and mechanical assembly, Agricultural products and
Contents of land use according to
Master plan approval documents
food processing, Medical devices manufacturing, Electronic and electrical devices assembly and manufacturing,
Consumer goods production, Textile, garments and some other industries.
•
Land lease method
Investors are allowed to propose adjustments to the planning of industries in the industrial zone to meet the practice.
Land lease or factory hiring
VIETNAM AUTOMOBILES MARKET REPORT
46
6.11.3. Business Environment – Quang Ninh industrial complex
• Quang Ninh Industrial Park is adjacent to a high-speed
• The connectivity of inter-regional traffic has not been
system with a route across the border with China, fully
optimized and some bottlenecks in important traffic
converging types of transport: Van Don international
routes have not been resolved
airport, Lach Huyen seaport suitable to form a
biological Manufacturing industrial zones associated
with Logistics
• Policies and incentives to promote businesses in the
field of automobile production and assembly
S
W
• Quang Ninh is in the process of completing projects
on the road connecting Cai Lan Industrial Park to Ha
Long - Van Don Expressway and Van Don - Mong Cai
Expressway
to
create
a
basis
for
supporting
• The progress of production and assembly projects is
O
T
transportation for businesses
site clearance
• Challenges in administrative procedure reform and
developing high-quality human resources
• Policy of economic development towards restructuring
industries, improving technology map and expanding
connection with other industrial zones in the region
VIETNAM AUTOMOBILES MARKET REPORT
still slow, unsatisfactory due to the impact of ineffective
47
1.3. Business Environment – Chu Lai industrial complex
CHU LAI INDUSTRIAL PARK
Quang Nam
VIETNAM AUTOMOBILES MARKET REPORT
THACO AUTOMOBILE COMPLEX
48
48
1.3. Business Environment – Chu Lai industrial complex
Since 2003, THACO has invested in Chu Lai Industrial Park to form THACO CHU LAI open economic zone with the total acreage of 1,200 ha. THACO CHU LAI consists
of 4 major industries that the company has already had strengths and opportunities:
•
Mechanical engineering & automotive industry (325 ha)
•
Agricultural & Forestry (451 ha)
•
Sea port & Logistics (140 ha)
•
Chu Lai Real estate (320 ha)
THACO CHU LAI industrial park
Location
Hamlet 4, Tam Hiep Commune, Nui Thanh District, Quang Nam Province
Total investment
Over USD 3.4 billion
•
Road: THACO CHU LAI located on the main national traffic junctions, including 1A National Highway, north-south railway and Da
Nang – Quang Ngai expressway
Transportation
Infrastructure
•
Seaways: THACO CHU LAI is 2.5 km away from Chu Lai port (port number 1 - Tam Hiep port). Chu Lai port belongs to the national
seaport system, with the advantage of being a wind-tight port, convenient for cargo ships to enter and dock
•
Airways: THACO CHU LAI is 15 km away from Chu Lai airport. This is the largest airport in Vietnam, currently has routes Chu Lai Hanoi and Chu Lai - Ho Chi Minh City
•
Electricity: Power is supplied from the national grid via 110KV Ky Hoa transformer station with 2 transformers with capacity of 40
MVA each, providing stable power to the industrial park
Technical
infrastructure
•
Water supply: provided by Tam Hiep Water Plant with a total capacity of 20,000 m3/day and night to ensure sufficient water supply,
connected to the fence of businesses
•
Wastewater treatment system: wastewater is treated locally from each factory and sent to a general treatment area. Waste water
collection and treatment system for North Chu Lai Industrial Park - phase 1 with capacity of 1,900 m3/day and night has been put into
operation
VIETNAM AUTOMOBILES MARKET REPORT
49
Source: VIRAC, THACO
1.3. Business Environment – Chu Lai industrial complex
Organizational structure of automotive department at THACO Chu Lai
General manager of
automotive and
mechanics
Vice manager of
automotive
manufacturing
Trucks and buses
manufacturing and
assembling
factories
Passenger vehicles
manufacturing and
assembling
factories
Vice manager of
automotive
supporting industry
Automotive
supporting
factories
Vice manager of
mechanics
Mechanical
manufacturing and
processing
complexes
Design and
commercial
companies
Source: VIRAC, THACO
VIETNAM AUTOMOBILES MARKET REPORT
50
1.3. Business Environment – Chu Lai industrial complex
Factories of THACO Chu Lai industrial complex
THACO passenger
vehicles
THACO Bus
THACO Truck
THACO Kia
THACO Mazda
THACO Semitrailer and trailer
Operational time
May 2019
December 2017
March 2020
September 2019
March 2018
February 2016
Total invesment
USD 190 million
n/a
USD 190 million
USD 20 million
n/a
USD 6.5 million
Total acreage
7.5 ha
17 ha
11 ha
31 ha
30.3 ha
4 ha
Capacity
20,000 units per
year
20,000 units per
year:
• 8,000 buses
• 12,000 minibuses
50,000 units per
year
50,000 units per
year
100,000 units per
year
5,000 units per year
Types of products
Peugeot 3008,
Peugeot 5008,
Peugeot Traveller
Premium and
Peugeot Traveller
Luxury
12, 47, 60-seat
buses in 3
segments: Deluxe –
Luxury - Premium
Trucks, Dump trucks
and Specialized
trucks branded
Foton, Forland, Kia,
Mitsubishi Fuso
Kia Morning, Kia
Soluto, Kia Cerato,
Kia Optima, Kia
Rondo, Kia Sorento,
Kia Seltos
Mazda 3, Mazda 6,
Mazda CX-5, Mazda
CX-8
Hooded trailers,
Special-purpose
trailers, concrete
mixing tanks, etc.
Source: VIRAC, THACO
VIETNAM AUTOMOBILES MARKET REPORT
51
1.3. Business Environment – Chu Lai industrial complex
6.1
• Chu Lai industrial park has a convenient transportation
• Transportation infrastructure among Chu Lai industrial
infrastructure that includes highway, airways and
park is unequal, esspecially outside THACO Chu Lai.
seaways with the distance of under 10 km
Lack of investment and incentive policies make it hard
for synchronzing
• THACO Chu Lai is the biggest automotive industrial
complex of Vietnam due to its parties of automobile
assembling
industry
and
supporting
• Lack of connectivity with other economic centers such
industry
altogether
• THACO Chu Lai has a long period of development and
as Hanoi and Ho Chi Minh City
S
W
has fulfilled the manufacturing process in order to raise
the localization rate
• Quang Nam province has been improving the standard
of living, resulted from economic growth. Main factors
that enable rapid growth is THACO Chu Lai industrial
complex, Nam Anh industrial park and North Chu Lai
• The progress of production and assembly projects is
O
industrial park. These industrial parks will be the
site clearance
• Challenges in administrative procedure reform and
developing high-quality human resources
flagship of Quang Nam economy, attract more
• Automobiles consumption in Vietnam central remains
investors in relative industries
low, this create a high transportation cost to bring
• Localization rate has chance to increase due to
products to customers in big cities in the North and
mechanical supporting industries among Chu Lai
VIETNAM AUTOMOBILES MARKET REPORT
T
still slow, unsatisfactory due to the impact of ineffective
South
52
ENTRY
LANDSCAPE
2.1. Domestic auto parts manufacturers
Automotive designed capacity in Vietnam
Unit: thousand units p.a.
OEMs
Existing capacity
2019
Planned new capacity
2020
Expected total capacity
2025
Thaco
207
120
327
TC Motor
102
150
252
Honda
10
10
20
Toyota
50
20
70
VinFast
250
250
500
Total
619
550
1,169
Source: VIRAC
Total designed capacity stays at 619,000 units p.a. with the commercial launching of VinFast and Thaco Luxury car plant in May 2019.
The industry is expected to witness a surge by 550,000 units p.a. in designed capacity by 2025.
VIETNAM AUTOMOBILES MARKET REPORT
54
2.1. Domestic auto parts manufacturers
Projected capacity of some automobile assembly plants, 2018 – 2020
Plants
Truong
Hai JSC
Capacity
Investment
units
Localization
rate
USD 500 million
(phase 1)
Industrial
Zone
Plans
• Completion of phase 1: 4/2018
Chu Lai
50,000
Mazda plant
Location
18%
(Quang Nam)
• Production of tires and other components will increase the
localization rate of 40%
• Export to Myanmar, Cambodia, Philippines
• Completed in mid-2019
Thanh Cong
Group
Hyundai Thanh
12,000
Cong plant
units/year
USD 500 million
Gia Vien
(Ninh Binh)
• Total production of tires and other components will increase
19%
the localization rate to 40%
• To become a Hyundai Motor Manufacturing Center in South
East Asia
• USD 3.5 billion
Vingroup
VinFast plant
500,000
units/year
• Completed in 2025
Dinh Vu-Cat
• To launch electric vehicles after 12 months, and launch cars
• Phase 1: USD1-1.5 billion Hai
• Credit Suisse AG
sponsors USD 800
million
Economic
60%
Zone (Hai
after 24 months
• To contribute to Hai Phong budget: USD 860 million
Phong)
• To become the leading car manufacturer in Southeast Asia
• The project is divided into two phases: phase 1 is expected to
Huyndai
Thanh
Huyndai Thanh
100,000
Cong and
Cong 2
units/year
Huyndai
(HTMV2)
be completed in June 2022, phase 2 will be completed in June
Gian Khau
USD 138 million
Motor
VIETNAM AUTOMOBILES MARKET REPORT
Industrial
Zone (Ninh
Binh)
40%
2025
• Production and assembly on modern lines were transferred
from Hyundai Motor and leading partners in the field of hightech mechanical engineering
55
2.1. Domestic auto parts manufacturers
THACO Truck
Some typical models of Thaco Auto
Truong Hai Auto Corporation (Thaco) was
founded on April 29, 1997 by Tran Ba Duong,
and has a total of about 20,000 staff members.
As one of the leading and largest automakers
in Vietnam, THACO has an A-to-Z value chain
ranging
from
product
R&D,
auto
parts
THACO Bus
manufacturing to auto assembly, logistics,
distribution and retail. The company is now
offering a wide range of products: trucks,
buses, passenger cars, and special-purpose
vehicles from mid-range to luxury segments
which have successively earned high sales and
automotive manufacturing and supporting
industries in Vietnam. It is home to 32
100,000
and mechanical complexes, Chu Lai port and
logistics units, road transport and shipping
companies,
construction
&
investment
companies, THACO College and other support
96,127
91,700
80,421
80,000
40.3%
59,709
60,000
companies and units, including automotive
assembly plants, automotive parts factories
89,602
42,339
7.3%
40,000
-4.6%
20,000
-20.6%
0
2014
units.
2015
2016
2017
Sales
2018
100%
Units
80%
30,000
60%
25,000
40%
20,000
20%
15,000
0%
10,000
-20%
5,000
-40%
0
9M/2020
2019 9T/2020
Growth
Source: VIRAC, VAMA
VIETNAM AUTOMOBILES MARKET REPORT
56
Thaco Kia
Thaco
Mazda
9M/2020
Peugeot
Thaco
Truck
9M/2019
540
1,613
Quang Nam is considered the largest hub of
112,847
89.9%
120,000
Sales volume of Thaco by brands,
9M/2019 – 9M/2020
17,043
17,150
Industrial Park in the central province of
Sales volume of Thaco, 2014 – 9M/2020
2,277
2,755
Thaco Chu Lai Mechanical and Automotive
Units
19,444
24,569
years.
20,405
21,081
market shares in the domestic market over the
Bus Thaco
Financial statement
INCOME STATEMENT
TRUONG HAI AUTO CORP. (THACO)
Unit: USD
BALANCE SHEET
Unit: USD
2018
2018
Net sales
1,964,570,948
1,917,285,460
Cost of goods sold
1,879,665,003
1,829,660,351
84,905,945
87,625,108
271,729,344
192,659,293
21,703,512
63,470,320
Interest expenses
8,832,025
28,673,725
Selling expenses
31,276,332
45,374,361
Administration expenses
31,727,402
35,397,166
Gross margin
2019
2019
Income from financial activities
795,451,535
656,360,001
4,082,367
4,000,222
II, Short-term investment
110,328,634
8,214,879
III, Short-term receivables
522,122,362
549,386,339
74,765,140
68,822,592
Profit from operation
271,928,044
136,042,554
142,840,630
77,098,036
Profit before tax
276,125,550
136,642,624
1,199,195,849
1,870,788,632
3,844,064
80,355
1,646,935
352,235,593
-312
-3,904,613
221,044,175
251,131,840
272,281,798
140,466,882
1,994,647,384
2,527,148,632
2018
2019
A, LIABILITIES
828,086,816
1,137,166,342
I, Short-term liabilities
827,908,243
966,854,777
Cash flows from operating activities
436,884,151
554,681,879
II, Cash flows from investment activities
1,296,425
2,290,061
178,574
170,311,565
-
170,131,111
145,944
171,650
B, EQUITY
1,166,560,568
1,389,982,290
TOTAL LIABILITIES AND OWNER'S EQUITY
1,994,647,384
2,527,148,632
A, CURRENT ASSETS
I, Cash and cash equivalents
1, Accounts receivable from customers
IV, Inventories
B, LONG-TERM ASSETS
1, Long-term receivable
2, Fixed assets
TOTAL ASSETS
Expenses from financial activities
Current income tax expenses
Income tax expenses is deferred
Net profit after tax
CASHFLOW STATEMENT
Unit: USD
1, Short-term loans and debts
2, Taxes payable to State Treasury
II, Long-term liabilities
1, Long-term loans and debts
2, Science and technology development fund
I, Cash flows from operating activities
Cash flows from investment activities
57
49,518,987
-231,448,103
-397,120,149
1,698,419
-82,017
4,082,367
4,000,222
III, Cash flows from financial activities
Cash flows from financial activities
Effects from exchange rate difference
Net cash flows during the fiscal year
*Exchange rate: USD/VND = 23,230
VIETNAM AUTOMOBILES MARKET REPORT
121,631,303
2.1. Domestic auto parts manufacturers
TYPICAL MODELS
TC Motor is formerly known as Thanh
Cong Mechanical Co., Ltd and was
established in 1999, with a vision to
Huyndai Kona
Huyndai i10
become the leading corporation in the
region. From the early beginning, TC
MOTOR has relied on internal resources to
expand and grow strongly, and to become
a
typical
contributions
business
to
with
the
Huyndai Elantra
Huyndai Accent
important
Vietnamese
automotive industry.
Huyndai Santafe
Huyndai Tucson
In 2009, Thanh Cong Group became an
official partner with Hyundai Group in the
field of distributing Hyundai passenger cars
in Vietnam. After 10 years of cooperation,
expansion and joint ventures, Thanh Cong
Group has made Hyundai become one of
the leading automotive brands in Vietnam.
In the first 9 months of 2020, Hyundai car
Sales volume of TC Motor, 2015 – 9M/2020
Units
106.3%
90,000
120%
80,000
100%
70,000
80%
60,000
sales reached 49,200. With the distribution
50,000
channel of 81 dealers, all car models
40,000
produced and distributed by TC MOTOR
30,000
dominate their segments. Especially, Thanh
20,000
Cong Group has shifted its structure from
10,000
importing the whole cars to nearly 100%
0
assembly production.
60%
34.8%
20%
0%
-15.4%
-20%
27,000
36,400
30,800
63,526
79,568
49,200
2015
2016
2017
2018
2019
9M/2020
Sales
VIETNAM AUTOMOBILES MARKET REPORT
40%
25.3%
58
-40%
Growth
Source: VIRAC
Financial statement
INCOME STATEMENT
HYUNDAI THANH CONG VIETNAM JSC.
Unit: USD
BALANCE SHEET
Unit: USD
2018
2018
Net sales
1,258,784,915
1,859,108,233
Cost of goods sold
1,214,952,882
1,642,321,232
43,832,033
216,787,002
Income from financial activities
5,010,537
9,004,550
Expenses from financial activities
3,629,608
4,630,809
Interest expenses
2,777,508
4,043,473
Selling expenses
15,333,652
22,001,535
541,074
831,699
Gross margin
2019
2019
198,657,445
357,399,695
I, Cash and cash equivalents
30,889,200
34,198,129
II, Short-term investment
58,619,037
98,527,295
III, Short-term receivables
70,489,155
192,777,285
1, Accounts receivable from customers
42,035,411
73,247,463
Profit from operation
29,338,236
198,327,508
IV, Inventories
33,754,871
31,896,985
Profit before tax
28,786,710
198,142,322
B, LONG-TERM ASSETS
81,447,252
83,037,150
Current income tax expenses
2,531,908
17,213,814
-
-
-
-
68,988,182
71,389,491
26,254,802
180,928,508
TOTAL ASSETS
280,104,697
440,436,845
A, LIABILITIES
127,329,920
115,289,307
I, Cash flows from operating activities
I, Short-term liabilities
127,329,920
115,289,307
Cash flows from operating activities
A, CURRENT ASSETS
1, Long-term receivable
2, Fixed assets
Administration expenses
Income tax expenses is deferred
Net profit after tax
CASHFLOW STATEMENT
Unit: USD
13,331,183
45,630,650
II, Cash flows from investment activities
2,977,773
14,316,906
Cash flows from investment activities
II, Long-term liabilities
-
-
1, Long-term loans and debts
-
-
2, Science and technology development fund
-
-
B, EQUITY
152,774,776
325,147,537
TOTAL LIABILITIES AND OWNER'S EQUITY
280,104,697
440,436,845
1, Short-term loans and debts
2, Taxes payable to State Treasury
59
2019
-26,939,586
62,890,094
-42,903,957
-43,225,479
60,787,405
-16,351,129
-
-
-9,056,138
3,313,486
III, Cash flows from financial activities
Cash flows from financial activities
Effects from exchange rate difference
Net cash flows during the fiscal year
*Exchange rate: USD/VND = 23,230
VIETNAM AUTOMOBILES MARKET REPORT
2018
2.1. Domestic auto parts manufacturers
TYPICAL MODELS
Honda was established in 1948 in Japan and is
one of the most valuable brand in the world
(Forbes' annual ranking of the world's most
valuable brands). The company's global strategy
is to supply products of the highest quality yet
at a reasonable price for worldwide customer
Honda City
satisfaction.
Honda Civic
Honda CR-V
Honda City
Honda Vietnam was established in 1996 as a
joint venture between 3 partners, Japan Honda
Motor Company (42%), Thailand Asian Honda
Motor Company (28%), and Vietnam Engine
and Agricultural Machinery Corporation (30%)
to
manufactures
two
main
products:
motorcycles and automobiles. In March 1998,
Honda Vietnam inaugurated the first factory
Honda Vietnam's strategy
Units
Sales volume of Honda Vietnam, 2014 – 9M/2020
35,000
140%
33,102
Honda Motor Vietnam is to provide
123.3%
27,099
30,000
120%
25,000
100%
20,000
80%
manufacturing motorcycles, and in March 2005,
Honda Vietnam officially received the license
from the Ministry of Planning and Investment to
allow
the
production
and
assembly
of
automobiles in Vietnam with a modern factory
and assembly line in Vinh Phuc with the
capacity of about 10,000 vehicles/year. Honda
16,520
15,000
10,000
6,492
5,000
8,312
38.4%
22.2%
Accord and Honda Civic lines to fully meet the
2014
needs of Vietnamese customers.
VIETNAM AUTOMOBILES MARKET REPORT
2015
2016
2017
Sales
60
fuel-saving
technology
in
order
to
optimize the value for customers. In
Vietnam, most Honda models use new I-
VTEC technology engines combined with
continuously variable transmission (CVT)
20%
operate smoothly, save fuel and be
environmentally friendly.
Every year, Honda Vietnam organizes
5.5%
0
products with advanced, durable and
gearboxes, which give the ability to
40%
28.0%
Vietnam currently offers passenger cars such as
Honda City, Honda CR-V, and import Honda
60%
12,134
11,501
One of the business strategies of
0%
2018
Growth
2019
9M/2020
9T/2020
Source: VIRAC, VAMA
safe driving programs and experiences
new models to help consumers to
appreciate the most authentic Honda
products in Vietnam.
Financial statement
INCOME STATEMENT
HONDA VIETNAM CO., LTD
Unit: USD
BALANCE SHEET
Unit: USD
A, CURRENT ASSETS
2018
2019
1,480,795,400
1,502,461,375
1,069,730,078
1,149,107,065
II, Short-term investment
-
-
III, Short-term receivables
65,153,628
1, Accounts receivable from customers
I, Cash and cash equivalents
2018
2019
Net sales
4,590,351,458
4,666,103,683
Cost of goods sold
3,204,162,355
3,247,936,527
Gross margin
1,386,189,103
1,418,167,156
Income from financial activities
53,618,656
56,512,532
Expenses from financial activities
23,072,644
18,618,679
-
-
Selling expenses
187,367,122
186,306,205
65,022,110
Administration expenses
217,805,692
227,646,541
61,413,411
60,864,709
Profit from operation
1,011,562,302
1,042,108,262
IV, Inventories
296,972,041
252,436,271
Profit before tax
1,009,396,961
1,041,379,212
B, LONG-TERM ASSETS
279,678,616
307,060,506
Current income tax expenses
177,475,581
167,545,921
95,576
250,568
-3,801,255
1,782,098
207,077,119
211,757,301
835,722,635
872,051,193
1,760,474,016
1,809,521,881
A, LIABILITIES
871,614,551
884,333,858
I, Cash flows from operating activities
I, Short-term liabilities
810,812,771
807,912,098
Cash flows from operating activities
1, Long-term receivable
2, Fixed assets
TOTAL ASSETS
Interest expenses
Income tax expenses is deferred
Net profit after tax
CASHFLOW STATEMENT
Unit: USD
-
-
2, Taxes payable to State Treasury
45,683,476
47,987,847
II, Long-term liabilities
60,801,780
76,421,760
-
-
52,555,520
63,697,617
888,859,465
925,188,023
1,760,474,016
1,809,521,881
1, Short-term loans and debts
1, Long-term loans and debts
2, Science and technology development fund
B, EQUITY
TOTAL LIABILITIES AND OWNER'S EQUITY
61
2019
791,264,600
923,607,416
-42,510,918
-69,176,631
-842,351,926
-788,025,313
-93,598,244
66,405,472
II, Cash flows from investment activities
Cash flows from investment activities
III, Cash flows from financial activities
Cash flows from financial activities
Effects from exchange rate difference
Net cash flows during the fiscal year
*Exchange rate: USD/VND = 23,230
VIETNAM AUTOMOBILES MARKET REPORT
2018
2.1. Domestic auto parts manufacturers
TYPICAL MODELS
Toyota
Co.,
Motor
Ltd
Vietnam
(TMV)
automobile
Joint
is
an
Camry
Ventures
Vios
Corrolla
Fortuner
founded in September, 1995.
The total investment capital
was 89.6 million USD based
on the capital contributions
from
Toyota
Motor
Innova
Corporation (70%), Vietnam
Engine
and
Machinery
Agricultural
Corporation
-
KUO
Units
90,000
(10%).
80,000
Since establishment, TMV has
70,000
VEAM
(20%)
Singapore
incessantly
and
Pte.Ltd
developed
not
only in sales but also in
production scale. By now,
TMV is holding the leading
30,000
automobile market with the
20,000
capacity of more than 30,000
10,000
units/year (two working shifts
0
a day) and the accumulated
20.5%
65,856
57,036
20%
15%
13.4%
40,820
4.1%
2016
2017
Sales
apply
higher
prices
than
competitors in every segment.
Marketing and branding policy: product exhibition,
discount,
sponsorship,
customer
club,
annual participation in Vietnam Motorshow. In addition,
activities,
from
year-end
thank
you
party,
golf
5%
driving... to bring company brand closer to consumers.
tournament, car maintenance instruction courses, safe
Labour training policy: Toyota Vietnam applies a
2018
2019
9M/2020
9T/2020
Source: VIRAC, VAMA
62
strategy
of
professional
training
and
regular
qualification testing, especially the company is very
interested in and prioritizes the recruitment of local
Growth
* Sales does not include Lexus
VIETNAM AUTOMOBILES MARKET REPORT
Toyota
10%
0%
2015
policy:
the company also organizes a lot of customer care
41,109
11.0%
2014
Price
promotion,
59,355
50,285
sales of TMV reaching more
than 305,799 units.
25%
79,328
23.2%
40,000
position in the Vietnamese
Honda Vietnam's strategy
Sales volume of Toyota Vietnam, 2014 – 9M/2020
60,000
50,000
Hiace
human resources.
Financial statement
INCOME STATEMENT
TOYOTA MOTOR VIETNAM CO., LTD
Unit: USD
BALANCE SHEET
Unit: USD
A, CURRENT ASSETS
2018
403,441,300
I, Cash and cash equivalents
91,283,047
86,493,221
II, Short-term investment
23,676,281
60,266,896
III, Short-term receivables
22,101,661
1, Accounts receivable from customers
2019
Net sales
1,644,776,950
1,762,104,176
Cost of goods sold
1,369,759,730
1,473,539,017
275,017,220
288,565,159
12,887,352
11,797,905
5,228,974
7,997,893
Gross margin
2019
430,984,885
2018
Income from financial activities
Expenses from financial activities
-
-
Selling expenses
31,835,132
29,605,613
24,471,038
Administration expenses
22,450,869
24,094,457
11,042,491
14,412,112
Profit from operation
228,389,597
238,665,100
289,078,538
226,244,198
Profit before tax
226,448,156
238,567,690
56,607,642
65,142,735
46,051,548
48,836,896
275,339
216,289
-644,923
1,136,456
50,878,785
56,007,224
181,041,532
188,594,338
TOTAL ASSETS
487,592,527
468,584,034
A, LIABILITIES
242,424,532
215,863,234
I, Cash flows from operating activities
I, Short-term liabilities
236,844,898
203,766,088
Cash flows from operating activities
IV, Inventories
B, LONG-TERM ASSETS
1, Long-term receivable
2, Fixed assets
Interest expenses
Current income tax expenses
Income tax expenses is deferred
Net profit after tax
CASHFLOW STATEMENT
Unit: USD
-
-
50,130,924
38,685,113
5,579,634
12,097,146
-
-
5,579,634
12,097,146
B, EQUITY
245,167,995
252,720,800
TOTAL LIABILITIES AND OWNER'S EQUITY
487,592,527
468,584,034
1, Short-term loans and debts
2, Taxes payable to State Treasury
II, Long-term liabilities
1, Long-term loans and debts
2, Science and technology development fund
63
2019
25,988,893
224,113,575
-33,935,716
-47,868,903
-133,822,876
-181,041,532
-141,769,699
-4,796,860
II, Cash flows from investment activities
Cash flows from investment activities
III, Cash flows from financial activities
Cash flows from financial activities
Effects from exchange rate difference
Net cash flows during the fiscal year
*Exchange rate: USD/VND = 23,230
VIETNAM AUTOMOBILES MARKET REPORT
2018
2.1. Domestic auto parts manufacturers
TYPICAL MODELS
VinFast was founded in 2017, and is part of
VinFast President
VinFast Fadil
Vingroup which is Vietnam’s biggest private
enterprise. The company aims to become
the leading automobile and motorcycle
manufacturer in Southeast Asia. It plays a
key role in Vingroup’s vision to become an
VinFast Lux A 2.0
international standard technology-industry-
VinFast Lux SA 2.0
service conglomerate by 2028 with a focus
and
VinFast’s strategy
application.
set
up
a
manufacturing,
research, supplier park, and development
complex at a greenfield factory in the Dinh
Vu Economic Zone located in Cat Hai
District, Haiphong. The manufacturing plant
complex
comprises
335
hectares
and
includes a Centre for Product Research &
Development, Automobile Manufacturing
Plant, Training Centre and Localization
Area. From now to 2025 – 2030, most R&D
is expected to be channeled towards
electric cars. VinFast diversified its product
scope in an attempt to compete with both
mid-high-level prices such as MercedesBenz, BMW, Audi, Lexus and electric
models for lower segments.
VinFast has bought in German technologies from BMW,
Italian design from Pininfarina, and auto parts from Bosch
and
3,500
Siemens.
When
previous
original
equipment
manufacturers took about 60 months from design to
3,000
production, VinFast reduces lead time to a mere 24 months
by replacing the time-consuming clay remodification
2,500
process with digital modelling. The designs have been
2,000
selected by an online survey in which 60,000 people
participated. By proactively involving the general public, the
1,500
company hopes to capitalize on national pride which should
1,000
500
0
give the domestic consumer base the decisive push to
3,626
1,515
804
1,307
will
Sales volume of VinFast, 5 – 9/2020
1,494
849
337
308
VinFast
Units
4,000
2,214
1,577
355
282
development
2,170
1,364
467
339
technology
2,161
1,156
682
323
on
5/2020
6/2020
7/2020
8/2020
9/2020
Total sales
VIETNAM AUTOMOBILES MARKET REPORT
Fadil
Lux A2.0
Lux SA2.0
Source: VIRAC
64
purchase VinFast’s vehicles.
With
an
aggressive
recruitment
strategy,
VinFast
is
attracting top talents for CEO, managers and staffs. Some
key positions are taken by high-level managers from GM,
Bosch, Hoden. Notably, attractive packages are introduced
to hire a pool of skilled staff from Samsung.
Financial statement
INCOME STATEMENT
VinFast TRADING AND PRODUCTION CO., LTD
Unit: USD
BALANCE SHEET
Unit: USD
A, CURRENT ASSETS
2018
2019
783,073,994
793,233,982
2018
Net sales
12,032,396
263,754,378
Cost of goods sold
13,932,562
450,197,482
Gross margin
-1,900,165
-186,443,104
Income from financial activities
42,536,324
169,192,563
3,037,513
114,072,126
Expenses from financial activities
100,712,355
41,546,981
II, Short-term investment
-
-
III, Short-term receivables
619,156,097
237,409,679
1, Accounts receivable from customers
27,728,862
40,610,830
IV, Inventories
10,245,593
419,893,867
1,562,131,994
3,101,466,849
1, Long-term receivable
139,475,248
348,175
2, Fixed assets
162,849,177
2,738,351,205
TOTAL ASSETS
2,345,205,988
3,894,700,831
A, LIABILITIES
1,264,204,405
3,060,911,552
543,035,639
756,981,323
Cash flows from operating activities
195,586,485
218,604,784
II, Cash flows from investment activities
10,558,744
17,963,512
II, Long-term liabilities
721,168,766
2,303,930,228
1, Long-term loans and debts
721,168,766
2,303,930,228
-
-
B, EQUITY
1,081,001,583
833,789,279
TOTAL LIABILITIES AND OWNER'S EQUITY
2,345,205,988
3,894,700,831
I, Cash and cash equivalents
B, LONG-TERM ASSETS
-
100,436,713
1,955,640
56,023,852
25,706,908
61,850,015
Profit from operation
9,936,097
-249,196,534
Profit before tax
7,455,569
-248,030,464
Current income tax expenses
1,273,716
-
-
-
6,181,852
-248,030,464
Interest expenses
Selling expenses
Administration expenses
Income tax expenses is deferred
Net profit after tax
CASHFLOW STATEMENT
Unit: USD
I, Short-term liabilities
1, Short-term loans and debts
2, Taxes payable to State Treasury
2, Science and technology development fund
65
2018
2019
I, Cash flows from operating activities
Cash flows from investment activities
-98,431,703
-362,756,453
-1,566,860,805
-1,281,626,556
1,760,841,675
1,584,876,726
95,549,167
-59,506,283
III, Cash flows from financial activities
Cash flows from financial activities
Effects from exchange rate difference
Net cash flows during the fiscal year
*Exchange rate: USD/VND = 23,230
VIETNAM AUTOMOBILES MARKET REPORT
2019
2.1. Domestic auto parts manufacturers
Localization rate of key auto parts OEMs in Vietnam, 2019
Company’s average
Passenger cars
Truck
Bus
Target
15% - 18%
15 - 18%
35 - 45%
60%
60%
~12%
35% (Hyundai Accent)
40%
~25%
30% (Honda City)
40%
15% (Honda CR-V)
~20%
37% (Innova)
45%
Less than 10%
Less than 10% (Fadil)
60%
Source: VIRAC
VIETNAM AUTOMOBILES MARKET REPORT
66
Analysis of domestic tier-1 and tier-2 auto parts production
Breaking down the existing auto part suppliers by tier type, among 404 suppliers identified by JETRO and JICA experts, there are 83 first tier suppliers, 138 second
and third tier suppliers, 5 aftermarket producers, and 178 are not classifiable. By supplier specialization, 61 firms supply motorcycle parts, 50 firms supply both
motorcycle and automobile parts, 18 firms supply automobile parts, and 275 firms are not classifiable. By nationality, there are 177 Japanese, 136 Vietnamese, 57
Taiwanese, 14 South Korean, and the remains belong to Germany, Malaysia, USA, etc.
Suppliers by tier type
Suppliers by nationality
Suppliers by specialization
Motorcycle parts
15%
1st tier
21%
Automobile parts
5%
Unknown
44%
South Korea
3%
Others
7%
Taiwanese
14%
Japanese
43%
Both, 12%
Unknown
68%
2nd tier
34%
Vietnamese
33%
AMP
1%
1st tier
2nd tier
AMP
Unknown
Motorcycle parts
Automobile parts
Both
Unknown
AMP: Aftermarket producers
Japanese
Vietnamese
Taiwanese
South Korea
Others
Source: VIRAC, Synthesizing from JETRO’s and JICA’s list of local firms
• To meet the growing demand, an automotive assembly company needs at least 20 suppliers of various components. However, even big joint ventures like
Toyota is not able to produce CBU vehicles in Vietnam because the number of enterprises engaged in manufacturing spare parts is too small.
• Automobile supporting industry only produces a number of components including components of chassis, car body, cabin cover, car door, tires, radiators,
brakes, electric motors, shafts, wheel rims, etc. Therefore, the components and spare parts of automobiles are small in size, types and quantities.
• The majority of domestic firms in the automobile supporting industries only provide products to the domestic automobile assembly companies, while the FDI
enterprises in the supporting industries only supply products to FDI automobile assembly companies.
VIETNAM AUTOMOBILES MARKET REPORT
67
Analysis of domestic tier-1 and tier-2 auto parts production
Technical skill is not a major problem of local tier-1 suppliers, but the key barriers for them to engage in the automotive supply chain are high cost, low
management skills (production, quality, warehouse, human...), and their perception of safety, environment.
What car manufacturers expect from their potential suppliers include an updated and attractive business profile; cost and quality competitiveness; samples
following to drawings; entrepreneur’s enthusiasm and perseverance; stable product quality, accurate tolerance; and ability to provide with different scales to
different customers.
➔ Recommendations to potential suppliers: To become auto part suppliers and participate in automobile global supply chain, local businesses should:
•
Take part in auto part supplier databases and business matching programs.
•
Create attractive business profile.
•
Improve productivity, cut costs, compete on price and quality.
•
Improve management capability, and comply to the international norms of doing business.
•
Obtain international certification for quality, environment.
VIETNAM AUTOMOBILES MARKET REPORT
68
10 Key tier-1 auto parts manufacturers
No.
Company name
Tax code
Location
Net sales 2019 (USD)
1
DENSO MANUFACTURING
VIETNAM CO., LTD.
0101210878
Lot E1, Thang Long Industrial Park, Kim Chung Commune, Dong Anh
District, Hanoi City
480,710,500
2
YAZAKI HAI PHONG VIETNAM
CO., LTD
0200438947
Lot L, Nomura Industrial Park, Hai Phong, An Hung Commune, An
Duong District, Hai Phong
428,302,997
3
SUMI-HANEL WIRING SYSTEMS
CO., LTD
0100113945
Industrial Road 4, Sai Dong B Industrial Park, Thach Ban Ward, Long
Bien District, Hanoi
356,189,388
4
VIETNAM PRECISION INDUSTRIAL
NO.1 CO, LTD
2500213190
Khai Quang Industrial Park, Khai Quang Ward, Vinh Yen City, Vinh
Phuc Province
168,585,158
5
TOYOTA BOSHOKU HANOI CO.,
LTD
2500152396
No. 144, Tran Phu Street, Phuc Thang Ward, Phuc Yen Town, Vinh
Phuc Province
118,796,461
6
GS BATTERY VIET NAM CO., LTD
3700255457
No. 18, Street 3, Vietnam - Singapore Industrial Park, Binh Hoa Ward,
Thuan An Town, Binh Duong Province
103,601,922
7
HARADA INDUSTRIES VIETNAM
CO., LTD
3600243024
Lot A1, Long Binh EPZ, Bien Hoa City, Dong Nai
84,305,847
8
HANOI PLASTICS JOINT STOCK
COMAPY
0100100858
Group 12, Phuc Loi Ward, Long Bien District, Hanoi
51,837,654
9
INOAC VIETNAM CO., LTD
2500236896
Lot 36, Quang Minh Industrial Park, Quang Minh Town, Me Linh
District, Hanoi
50,719,875
10
SUMMIT AUTO SEATS INDUSTRY
CO., LTD
0101841425
Noi Bai Industrial Park, Soc Son District, Hanoi
2,391,905
*Exchange rate: USD/VND = 23,230
VIETNAM AUTOMOBILES MARKET REPORT
69
10 Key tier-1 auto parts manufacturers
Tier-1 suppliers
Denso Manufacturing Vietnam Co., Ltd.
Overview
Products
Location
Denso Manufacturing Vietnam Co., Ltd was established on October 4, 2001 (the
System control
Hanoi
official time of receiving the investment license) in Thang Long Industrial Park, Dong
component
Anh, Hanoi, Vietnam. Since establishment, DENSO Vietnam has always focused on
(Pedal, Valve
environmental protection in all business activities and working towards sustainable
switching)
development. The company has received ISO 14001 certificate in 2004.
Yazaki Hai Phong Vietnam Co., Ltd
Yazaki Hai Phong Vietnam is a subsidiary of the Yazaki Group, Japan. Yazaki
Electric Wire
Group is a global business with 596 factories and branches in 46 countries around the
System
Hai Phong
world. In Vietnam, Yazaki Hai Phong provides the electric wire system for cars. The
company is also one of the leading factories in terms of quality, product prices, and
on-time delivery to customers in Vietnam.
Sumi-Hanel Wiring Systems Co., Ltd
Sumi- Hanel Wiring System Co., LTd is a joint venture between Hanel and
Electric Wire
Sumitomo Corporation (Japan), specializing in manufacturing electric wires for
System
Hanoi
automotive, motorbike and electronic industries. The Company was established under
the Investment License No. 1588/GP dated 11 June 1996 issued by the Ministry of
Planning and Investment. Currently, Sumi- Hanel is operating with 5,000 employees
in Sai Dong B Industrial Zone, Hanoi. The company's products are highly valued for
quality and technical safety. With the advantage from the brand of Hanel MTV Co.,
Ltd., Sumi-Hanel Wiring System Co., Ltd has received the trust of many partners in the
electronics and automobile industry both in and outside the country.
Established in 2001, Vietnam Precision Industrial No.1 Co., Ltd. manufactures and
Stamping part,
Vietnam Precision Industrial No.1 Co,
supplies metal fabrication parts to various reputable companies including Honda,
Chassis frame
Ltd
Ducati and Ford. VPIC1 has obtained multiple ISO certificates and grown to a
assy, Side step,
company with approximately 3,500 employees. VPIC1 is part of Eurocharm
Hunger seat assy
Group which primary operates in Taiwan. Since 1974, the Group has been focusing on
delivering the best metalworking result with the most reliable quality.
VIETNAM AUTOMOBILES MARKET REPORT
70
Vinh Phuc
10 Key tier-1 auto parts manufacturers
Tier-1 suppliers
Overview
Products
Location
Toyota Boshoku Hanoi Co., Ltd
Toyota Boshoku group is one of the world's premium interior systems suppliers and
Seats and
Vinh Phuc
filter manufacturers, develops and produces interior components, unit components with the
interior
main office in Japan. Toyota Boshoku Asia (TBAS) employ over 11,000 team members in about
components,
20 locations throughout Thailand, Malaysia, Philippines, Taiwan, Vietnam. TBAS group is a
Carrier sub-
premier manufacturer of automotive interior systems, which include seats, door trims,
assays /Spare
headliners, substrate, and carpet in addition to air and oil filters for a variety of customers.
wheels, Floor
Toyota Boshoku Hanoi Co., Ltd is established on 06/26/2008, with head office located in
Carpets
Phuc Yen City, Vinh Phuc Province, Vietnam.
GS Battery Viet Nam Co., Ltd.
GS Battery VietNam Co., Ltd is a company 100% foreign-owned capital, a joint venture
between GS-Yuasa Corporation which is the No. 1 biggest lead-acid batteries manufactures in
Battery
Binh
Duong
Asia and Mitsubishi Corporation which is the biggest trading conglomerate in Japan. The
company was established on May 12th,1997, and began its operation and business activities
in 1999. Market share:
- No 1 position in Vietnam for the original equipment market for famous manufacturers
such
as
Toyota,
Honda,
Mercedes-
Benz,
Yamaha,
Mitsubishi,
Piaggio.
- No 1 position in Vietnam for the replacement market of motorcycle and automotive
batteries.
Harada Industries Vietnam Co.,
Ltd.
HARADA has been delivering automotive antennas since 1957 with the Lock Antenna, a
radio receiving automotive antenna. Since then, they have advanced into a world-class
supplier occupying a high share of OEM supplies for global automakers. The company
provides customers a clear solution on antenna and surrounding technologies meeting the
customer and market needs in response to the fast moving world of the automotive industry.
VIETNAM AUTOMOBILES MARKET REPORT
71
Attenna
Dong Nai
10 Key tier-1 auto parts manufacturers
Tier-1 suppliers
Overview
Products
Location
Hanoi Plastics Joint Stock
Comapy
Hanoi Plastics Joint Stock Company (HPC) was established in 1972, headquartered in Long
Plastics part
Hanoi
INOAC group were founded in 1926, and starts their business by producing tires and tubes for
Rubber part,
Hanoi
bicycles. Since then, they have created new materials and products one after another,
Dam/ Assays
Bien, Hanoi and became a member company of An Phat Holdings - Plastic Plastic Group Art from
the end of 2018. HPC is equipped with modern production lines and equipment systems imported
from the US, Western European countries, Japan and some new industrial countries with
mechanized qualifications and relatively high automation.
Inoac Vietnam Co., Ltd
including launching Japan’s first polyurethane production operation.
INOAC Vietnam is one of the overseas subsidiaries of INOAC group, which focuses on
manufacturing rubber, polyurethane and developing their applications such as automotive, electric
products, office automation equipment, industrial machine, garment, furniture.
Summit Auto Seats Industry
Co., Ltd
Summit Auto Body Industry Co., Ltd. or "SUMMIT" was established in 1986 and is one of the
largest suppliers in Thailand's automotive industry. The ability to produce its own tooling and R&D
combined with a constant production enhancement has led SUMMIT to the leading position. All
SUMMIT's factories have passed IATF 16949:2016 , which is the latest standard in the industry.
VIETNAM AUTOMOBILES MARKET REPORT
72
Sunviso,
Headlining
Hanoi
2.2. Entry barriers - Challenges for manufacturers
•
The small domestic vehicle market does not encourage the development of auto parts industry: Among the existing suppliers, more than 90% are FDI
enterprises, only a few local suppliers can participate in the supply chains of auto manufacturers in Vietnam. Compared to Thailand, the number of suppliers in the
Vietnam’s automobile industry is too little. Regarding the tier-1 suppliers in 2019, Thailand has nearly 700 enterprises, but Vietnam has only 83 suppliers.
•
The condition of more number of assemblers sharing smaller and more scatter size makes Vietnam harder to develop supplier networks: The local parts
available for auto assemblers are normally labor intensive, simply produced, bulky and heavy parts, such as auto chairs, glasses, tires, wheels, etc.
•
Vietnam is seeing a major shortage of skilled labor: Only 12% of Vietnam’s 57.5 million-strong workforce are highly skilled, according to recruitment firm
ManpowerGroup. A number of Vietnam human capital index rankings is quite low, including know-how and development and education. These limitations can
certainly offset any savings in labor costs to make Vietnam a less attractive for many manufacturers since it will be hard for them to find quality labor force to
support the automotive industry.
•
Price:
➢
Low orders quantity due to small car sale volume
➢
Reliance on imported raw materials (must purchase raw materials from suppliers appointed by car manufacturers)
➔ High product selling price
•
Capability:
➢
Quality management system requirement
➢
Low technical skill
➢
Lack of experience in producing high end products
➢
Weak R&D capacity
➢
Lack of funding sources to purchase modern facilities
➢
Management capacity (late delivery, etc.)
➔ Difficulties to meet high technical requirements from car manufacturers.
VIETNAM AUTOMOBILES MARKET REPORT
73
2.2. Entry barriers - Key attractive points of Vietnamese automobiles industry
•
High potential automobile consumption market
➢ Vietnam’s automobile market has unique characteristics, which differentiates from those of other ASEAN countries: Vietnam has two major markets,
Hanoi and Ho Chi Minh City, but others have only one big market in capital city (Indonesia may have two, Jakarta and Surabaya). In Vietnam, potential market
seems to have a wider distribution, not only in Hanoi and Ho Chi Minh City, but also in other big cities like Hai Phong, Da Nang. These market characteristics
combining with other factors, i.e. demographic dividend, infrastructure, GDP per capital growth will make Vietnam to become a high potential for automobile
market in coming years.
➢ High saving rate among family: Average income of a typical family has been increasing year on year, in contrast spent per month has the same trend but at a
much lower speed. Therefore, savings has been increased for large spent on houses and expensive stuff like autos.
➢ Loan outstanding balance for individual’s consuming has steady growth speed, reached USD 63.9 billion in 2019.
Average income and spent per month, 2010 – 2019
USD
200
180
166.9
160
113.5
120
100
60
86.1
59.7
69.0
81.3
109.6
Vietnam loan outstanding balance, 2012-2018
70
180.8
80%
67.03%
60
133.4
140
80
USD billion
116.6
92.9
65.35%
60%
50
43.86%
40
50%
40%
30
52.1
70%
25%
40
9.53%
10
20
0
0
2010
30%
20
2012
2014
Average Income
2016
2018
2019
Spent per month
*Exchange rate: USD/VND = 23,230
VIETNAM AUTOMOBILES MARKET REPORT
11.75
19.63
28.24
46.69
58.37
63.93
2014
2015
2016
2017
2018
2019
Loan outstanding balance
Source: VIRAC, GSO
74
*Exchange rate: USD/VND = 23,230
20%
10%
0%
Growth
Source: VIRAC, NFSC
2.2. Entry barriers - Key attractive points of Vietnamese automobiles industry
•
Auto companies are increasing investments in supporting industries:
➢ On September 22, 2020, TC Motor began construction of the 340 ha Thanh Cong Viet Hung Complex for Automotive Supporting Industries in northern
Quang Ninh Province. A spokesperson for the Ninh Binh-based auto firm believed that the complex would attract many companies in the auto ecosystem.
➢ Next to Quang Ninh is the VinFast plant that makes cars, motorbikes and electric bikes in the Dinh Vu-Cat Hai industrial zone in Hai Phong City. A third
of the 335-ha plant is used to produce auto and motorbike parts.
➢ Truong Hai (Thaco) making large investments in supporting industries. It currently has 12 plants in the 1,200 ha Chu Lai-Quang Nam industrial zone
making both internal and exterior parts for buses, trucks and cars; composite parts; automotive glass; air conditioners for trucks, buses and passenger cars;
car body parts and more.
•
Vietnam young and cheap labor forces:
➢ Vietnam have low labor costs. The country monthly minimum wages in 2019 vary by region from $125 to $180, with the highest rates in urban areas like
Ho Chi Minh City and Hanoi. Besides, Vietnam’s minimum wage growth is showing signs of stability. Minimum wages increased by an average of 5.3% in
2019, a lower increase than in 2018 (6.5%) and 2017 (7.3%). The abundant low-wage labor force is one of the key attractive point in the initial stage of the
Vietnamese automotive industry’s development.
•
Taxes on automobiles and auto parts
➢ The Ministry of Finance has worked on a special consumption tax policy to submit it to the government, proposing to reduce or waive the tax on
domestically made car components to help local automobile manufacturers cut costs.
➢ The Ministry of Industry and Trade (MoIT) has also proposed other support policies such as lower corporate income tax for the auto industry and its
supporting industries.
➢ The Vietnamese central bank have also been considering policies to increase demand for cars, such as lower loan interest rates for buying domestically
produced cars.
VIETNAM AUTOMOBILES MARKET REPORT
75
2.2. Entry barriers - Proposals of entry strategy for Korean auto parts manufacturers
Reason that urges South Korean investors to pour money into projects on making car parts in Vietnam:
•
Vietnam’s new regulations, including Decree 116 that tightens control over imported automobiles, “positively influence” South Korean auto firms’ investment
decisions.
•
The saturation of the world market which has led to a drop in exports, domestic sales and manufacturing in South Korea. According to a report by the
Korea Automobile Manufacturers Association (KAMA), the country made 2,162,000 vehicles in the first six months of 2017, a 1.5 % year-on-year decline against
2016, marking the lower production since 2010.
•
The auto industry of South Korea owns an effective supply chain which its leading firms can take of advantage to reach out to international markets.
•
Vietnam’s strategic geographic location: many Korean auto part manufacturers' major goal is selling automobile parts to Southeast Asia, which may include
Vietnam’s VinFast - the automotive arm of conglomerate Vingroup. So the factories, one in place, would help Korean investors reduce the cost and raise the
convenience for supplying their products in the Southeast Asian market.
General strengths of Korean auto parts manufacturers:
•
The auto industry of South Korea owns an effective supply chain which its leading firms can take of advantage to reach out to international markets.
•
Investment from South Korea in Vietnam remains strong. The Northeast Asian country is the second-largest source of foreign direct investment (FDI) for
Vietnam in the first six months of this year, second only to Japan. During the reviewed period, South Korean firms invested US$5.06 billion, or 24.9% of total
investment to the country.
•
Korean is increasing investment in Vietnam to boost supporting industry: VITASK - a cooperation project between the South Korean Ministry of Trade,
Industry, and Energy and the Vietnamese Ministry of Industry and Trade, was officially launched on December 11, 2020, in Hanoi, to help Vietnamese businesses
in the automotive and electrical-electronic industries improve their capacity and deeply participate in the global supply chain.
•
Korea has experience in developing a successful auto industry and makes it a vehicle for economic growth. Korean auto parts manufacturers can draw lessons
for the development of auto industries in latecomer countries like Vietnam, and offer measures that can use, drawing on the successes and failures of the Korean
auto industry’s development experience.
VIETNAM AUTOMOBILES MARKET REPORT
76
2.2. Entry barriers - Proposals of entry strategy for Korean auto parts manufacturers
For the market entry strategy, Korean auto part makers may start with “pass through” first to test the market demand and then set up factories later on.
Key requirements for such pass through collaboration are as follows:
•
Be an existing auto part suppliers for OEMs’ overseas plants
•
Have a local partners with an existing manufacturers plant in Vietnam
•
Providing key input materials or parts for further processing in Vietnam and supplying to OEMs to test the market demand.
Suitable options of market penetration:
Collaboration with FDI auto parts markers
➢ Collaboration opportunity: low
➢ Collaboration type: Become their potential suppliers (preferred for Korean auto part makers have manufacturing plants in Vietnam already)
➢ Most of tier-1 auto part companies in Vietnam are FDIs who produce auto parts upon the orders from their parent companies or foreign customers. Majority of
their output products are exported while small portions are supplied to local car manufacturers.
Collaboration with local auto part makers
➢ Collaboration opportunity: high
➢ Collaboration type: R&D co-operation or become their clients or suppliers
➢ Local companies are open for cooperation with new partners and clients. However, most of them are small-scale businesses and able to provide small and
simple auto parts only. They would be good candidates for Korean auto parts makers in pass through collaboration since they have existing manufacturing
plants in Vietnam and are open to cooperate.
VIETNAM AUTOMOBILES MARKET REPORT
77
2.2. Entry barriers - Proposals of entry strategy for Korean auto parts manufacturers
Step 1
Information exchange between car
manufacturers and auto part makers
Site visit by car manufacturers to assess
Step 2
auto part supplier’s production capability
Car manufacturer provides standard technical
General procedure
Step 3
of entry strategy
Step 4
drawings and technical requirements
Auto part company provides sample & quotation
Sample product verification & contract
Step 5
Step 6
VIETNAM AUTOMOBILES MARKET REPORT
78
negotiation
Archive licenses and sign the contract
2.2. Entry barriers - Proposals of entry strategy for Korean auto parts manufacturers
Searching for suppliers
•
Searching for potential suppliers:
•
First visit: The purpose of the
Regularly, the car manufacturer
first visit is to confirm the
usually looks for new auto part
information
suppliers
gathered
databases
profile screening, preliminarily
developed
by
consulting
assess
companies
or
government
the
ability
requirements
on
to
introduction
assurance, etc.
the
existing
Profile
screening:
•
When
a
Second visit: If the samples
meet the requirements, the car
potential supplier is identified, the
manufacturer
car manufacturer will look at its
second visit. The purpose of this
profile
necessary
visit is mainly to confirm the
information about main products,
progress of improvements per
size
of
their recommendations in the
customers,
first time, the readiness of
equipment and technology in use,
potential suppliers to become
financial status, etc. If they find all
their suppliers, as well as the
conditions are satisfied, they will
enthusiasm and passion of the
contact to make an appointment
firms’ leaders.
of
to
the
collect
business,
establishment,
main
year
will
require
a
Request for quotation: if a
visible, the car manufacturer will
contact to request for quotation
for the products they offer. After
receiving the quotation, if it is
safety,
management systems, quality
reasonable, they will send a
request for sample production.
•
Request
for
sample
production:
There
can
be
several ways to request for
sample
production.
The
car
manufacturer can send detailed
blueprints, on which potential
suppliers
will
produce
molds
base
on
and
to
make
samples. The car manufacturer
can also send a sample product,
and
the
potential
suppliers
should measure the sample to
draw blueprints, making the
for a factory visit.
mold,
and
copied one.
VIETNAM AUTOMOBILES MARKET REPORT
Order
possibility of collaboration is
meet
organizations, trade fairs, or the
of
•
from
through
suppliers or employees.
•
Request for quotation and
sample
Visit
79
then
produce
a
•
Order for mass production: If
the
second
positive
visit
results,
manufacturer
achieved
the
will
car
consider
making the first order for mass
production. It normally takes
about 1.5 to 2 years from this
date until the launching date
of the first vehicle assembled
with
their
products.
Throughout this period time,
the
car
manufacturer
suppliers
still
frequently
collaborate,
have
and
to
work
together to ensure the quality
and progress of work.
2.3. Collaboration landscape
Key factors enable collaboration in Vietnamese automobiles industry
•
Increasing demand for higher localization rate:
➢
The Ministry of Finance proposed a draft regulation on new special tax calculation for domestically-produced cars to encourage automotive makers to
increase localization rate. Taxable price for domestically-produced automobiles with 9 seats or less will be exclusive of the value od the auto parts produced
domestically, encouraging automotive makers to increase the localization rate and enhance price competitiveness of domestic assembled car.
➢
To enjoy the tax incentives from the regulation, car manufacturers are expected to increase their localization rate via the cooperation with domestic
auto part suppliers.
•
Local OEMs aims to increase their localization rate:
➢
Car manufacturers are aims to increase their localization rate to over 40% via further development of local supplier base. For example, Toyota
Vietnam’s key focuses for localization in Vietnam include Seats, Body parts and Plastics auto parts.
➢
OEMs are leveraging existing motorcycle supplier base to find new auto part suppliers.
➢
Many OEMs in Vietnam are open for collaboration with Korean auto part suppliers such as Thaco Auto, Toyota Vietnam, Honda Vietnam, Ford
Vietnam, etc.
VIETNAM AUTOMOBILES MARKET REPORT
80
2.3. Collaboration landscape
SWOT analysis for Vietnamese automobiles industry
S
W
• In the short term, vehicles assembled in Vietnam are
cheaper than imported vehicles. However, in the
long run, with the current import tax reduction
schedule for cars, it is likely that imported cars will
be priced close to domestically assembled ones
• The advantages from geographic location will help
reduce costs and facilitate the supply of products to
T
• Vietnam is in a period of deep international
integration with a series of FTAs signed which will
be a good opportunity for the country to join the
global supply chain and develop the supporting
industry.
• Living standard and income of the people are
gradually increasing. Opportunities to develop for
• The size of Vietnam's automobile market is
fragmented as car assemblers are disconnected.
• The automobile supporting industry is small
which cannot stimulate the development of parts
• Consumers in Vietnam tend to wait for lowpriced imported cars when the car import tax
from ASEAN is reduced to 0%.
• There are many contradictions in the
development policies of the automobile
industry
• Countries in the region have more competitive
the auto industry are still abundant.
VIETNAM AUTOMOBILES MARKET REPORT
manufacturing and supporting industries is weak.
manufacturers.
the markets in Southeast Asia.
O
• The connection between automobile
price and higher localization rates than Vietnam.
81
SWOT analysis OEMs in Vietnam suitable for collaboration – VinFast
❖ Strengths:
❖ Weaknesses:
• The sound business and financial performance of Vingroup over the
• The most serious challenge for VinFast is to compete with international
years is a strong foundation for the company to confidently take up the new
giants in both domestic and foreign markets. As a young brand with no
challenge.
proven track record, it will need to focus on the domestic market first, at
• The company’s business ecosystem in different sectors and its large
least in the coming five to ten years, then looks to export its products.
customer base of about 5 million middle-class people provide the
• VinFast will have to invest heavily in R&D capabilities and human
company with a unique advantage in marketing its automotive products in
resource development to internalize the imported technologies and
the domestic market. The company can provide promotion packages with
know-hows. VinFast’s technical teams are reportedly rather inexperienced
additional benefits from its other businesses, such as health care or holiday
and still unable to master these technologies, leading to their reliance on
vouchers, or even discounts for housing products to lure new car buyers.
consultants, especially AVL.
S
W
• Vingroup in general, and VinFast in particular, enjoy strong political
• VinFast need to work with partners to establish facilities for
backing from Vietnamese government authorities. It is an open secret
manufacturing car components and spare parts to achieve the expected
that Vingroup’s success in the real estate business is significantly indebted to
localization ratio of 60 per cent.
its political connections. These connections facilitated the group’s acquisition
of large, well-located land lots in major cities, mostly from state-owned
enterprises, to develop its real estate projects, which gave Vingroup a
considerable advantage over its competitors.
have led the Vietnamese government to provide VinFast with various
• Nationalist sentiments is VinFast’s strength in the domestic market.
Right from the beginning, VinFast wanted to mobilize nationalist sentiments
as a means to connect with Vietnamese customers and to win government
support, and capitalize on Vietnamese customers’ pride in driving a modern
and quality national car.
VIETNAM AUTOMOBILES MARKET REPORT
of their technologies, know-hows, parts and components, but in the
long run, failing to internalize these resources will cause the company to
produce just another type of “Made in Vietnam” cars, and not the type of
• Strong political support and VinFast’s importance to the local economy
preferential incentives.
• In the initial stage, VinFast had to take a short cut by importing most
82
“Made by Vietnam” cars that the company wishes to develop.
SWOT analysis OEMs in Vietnam suitable for collaboration – VinFast
❖ Threats:
❖ Opportunities:
• The potential for the Vietnamese automotive market remains ample. The
car ownership ratio in Vietnam is 16 cars/1,000 residents, significant lower
than that of Malaysia (341/1,000), Thailand (196/1,000), and Indonesia
• In the domestic market, Vingroup will have to work hard to sell its cars to
customers who typically prefer Japanese brands and imported cars to
domestic ones.
(55/1,000). As a country of 94 million people with young demographics and a
• In order to make its production more efficient, and to reduce car prices,
fast expanding middle class, Vietnam is a promising market with significant
Vingroup will need to increase its manufacturing scale. In this regard, the
sale opportunities for VinFast and other automakers if they can cater to the
small size of the domestic market is a major impediment.
O
varied demands of local customers.
T
• To change the country’s traffic culture, reduce air pollution and grow
• As a new player in the industry, VinFast is no doubt facing many
the automotive market, the Vietnamese government is likely to consider
difficulties, but also enjoys certain benefits from being a latecomer: the
gradually phasing out motorbikes in certain big cities, especially Hanoi and
company can adopt new, advanced technological platforms or a forward-
Ho Chi Minh City. However, this measure is not going to be feasible unless
looking business strategy right from the beginning without having to deal
local governments provide alternative public transport options for those who
with legacy issues, decision to develop e-scooters and electric cars are cases
cannot afford cars.
in point.
• The lack of infrastructure for cars is yet another challenge that not only
• Appealing for investments from financial institutions and win the trust
VinFast but also other automakers will have to face. Frequent traffic jams
of its partners and suppliers: Vingroup has a good track record, esspecially
and the lack of parking spaces have long discouraged car buyers in major
asset management not only in automobile industry but also other sectors.
cities. Vietnam will need to build more highways within and between cities
• To the end of 2020, domestically manufactured or assembled automobiles
will receive a 50% reduction in registation fee, which is a huge opportunity
for VinFast.
and reserve more urban spaces for parking facilities if it wants to give a
boost to the automotive industry.
• The large investment needed and the lack of a relevant technological
base and of qualified human resources in Vietnam is another significant
challenge.
VIETNAM AUTOMOBILES MARKET REPORT
83
SWOT analysis OEMs in Vietnam suitable for collaboration – Thaco
❖ Weaknesses
❖ Strengths
• Thaco is currently the leading company in the Vietnamese auto industry
• Thaco is a domestic private manufacturing enterprise and a pioneer
in terms of investment scale, capital resources, technology, number of brands
in the automobile manufacturing and assembling industry - a young
held, automobile segment and product consumption, etc.
industry in Vietnam; therefore, its financial resources are inferior to those
• Thaco owns the largest complex of modern automobile manufacturing
and assembling factories in Vietnam. This complex is built in Chu Lai Open
of competitors whose parent company is national corporations such as
Toyota, Mercedes-Benz, GM, and Ford.
Economic Zone, it is also considered as the largest mechanical manufacturing
• Experience in management, production, access to modern production
center in Vietnam with the main products being automobiles and all kinds of
technologies, advanced management models, as well as the strength of
auto parts.
the brand are also inferior to that of big and long-standing companies
S
• Thaco has diversified products, serving quite a full range of segments on
the market. In addition, the possession of modern technology and large
production scale helps Thaco create quality products with low prices (the
cheapest on the market among other prestigious car brands).
• The distribution system is strong and nationwide, so customer service is wellmanaged and prioritized.
• Cost of goods sold is cheap, due to tax incentives from the government.
The government supporting operation activities
within the industry and
advantage from a centralized chain model help Thaco outperform other
competitors.
W
such as Toyota and Ford.
• The technical level of the production team is not high, still requiring
a lot of training time.
• The ability to understand the needs of consumers and topography of regions
across the country helps Thaco quickly improve car models in accordance with
consumer preferences, terrain, and transportation systems.
VIETNAM AUTOMOBILES MARKET REPORT
84
84
SWOT analysis OEMs in Vietnam suitable for collaboration – Thaco
❖ Opportunities
❖ Threats
• The favorable geographical location of the factory complex, together
• Intense competition in the automobile manufacturing industry:
with the government’s preferential policies and political environment
economic development and increase in consumer demand for cars will
give Thaco the opportunity to expand production scale and complete the
inevitably bring about stronger competition.
self-contained production system, from the production of components
and spare parts to assembly, distribution and repair services, customer
service.
O
Southeast Asia, compared to the general level of the world automobile
T
manufacturing industry, THACO's technology is still much inferior.
• Improvement of people’s living standard and the rise of Vietnamese
middle class help Thaco expand its business.
• It is necessary to prioritize upgrading and improving technology,
improving
• Government guidelines and policies on domestic consumption such as the
movement and slogan "Vietnamese people use Vietnamese goods"
together with prehension of Vietnamese culture create a better image of
Thaco in Vietnamese people’s mind.
VIETNAM AUTOMOBILES MARKET REPORT
• Although the technology is considered to be the most modern in
efficiency
and
production
scale
to
ensure
stable
development and steady growth.
• Thaco faces challenges of training highly skilled workers who will be
directly in charge of the new advanced production technologies.
• Increasing gasoline prices, requirements for clean technology and
environmentally friendly products are also a challenge for Thaco.
• Vietnam's automobile manufacturing industry has gradually become
stable; opening Vietnam for integration with the world, tariff barriers and
techniques for protection will also change. This will cause Thaco to lose
tax incentives.
85
85
Appendix: Financial Statement
Financial statement
DENSO MANUFACTURING VIETNAM CO., LTD.
INCOME STATEMENT
Unit: USD
BALANCE SHEET
Unit: USD
2018
2019
144,412,013
138,760,285
68,073,111
61,162,208
II, Short-term investment
-
-
III, Short-term receivables
47,549,491
48,727,322
1, Accounts receivable from customers
44,574,645
44,984,709
IV, Inventories
27,472,692
27,477,098
54,989,332
59,097,658
76,065
64,694
52,730,865
42,502,181
199,401,345
197,857,943
A, LIABILITIES
52,698,226
51,423,647
I, Short-term liabilities
49,843,542
50,265,922
A, CURRENT ASSETS
I, Cash and cash equivalents
B, LONG-TERM ASSETS
1, Long-term receivable
2, Fixed assets
TOTAL ASSETS
2018
Net sales
483,650,166
480,710,500
Cost of goods sold
348,664,646
309,341,494
84,002,294
79,850,984
Income from financial activities
3,172,811
2,018,414
Expenses from financial activities
1,037,697
1,097,532
Gross margin
-
-
20,107,139
16,744,983
9,432,226
9,024,107
Profit from operation
56,598,043
55,002,774
Profit before tax
56,241,713
53,461,599
8,740,199
8,766,780
-124,973
-219,012
47,626,488
44,913,832
Interest expenses
Selling expenses
Administration expenses
Current income tax expenses
Income tax expenses is deferred
Net profit after tax
CASHFLOW STATEMENT
Unit: USD
-
2, Taxes payable to State Treasury
2,427,544
1,624,972
II, Long-term liabilities
2,854,684
1,157,725
-
-
2,854,684
1,157,725
B, EQUITY
146,703,119
146,434,296
Effects from exchange rate difference
TOTAL LIABILITIES AND OWNER'S EQUITY
199,401,345
197,857,943
Net cash flows during the fiscal year
1, Long-term loans and debts
2, Science and technology development fund
Cash flows from operating activities
II, Cash flows from investment activities
Cash flows from investment activities
III, Cash flows from financial activities
Cash flows from financial activities
*Exchange rate: USD/VND = 23,230
VIETNAM AUTOMOBILES MARKET REPORT
87
2018
2019
I, Cash flows from operating activities
-
1, Short-term loans and debts
2019
87,475,190
59,283,295
0
0
-8,698,526
-19,221,626
0
0
-60,083,319
-45,747,530
0
0
18,693,345
-5,685,861
Financial statement
YAZAKI HAI PHONG VIETNAM CO., LTD
INCOME STATEMENT
Unit: USD
BALANCE SHEET
Unit: USD
2018
2019
140,020,777
136,458,693
21,434,766
18,834,953
II, Short-term investment
-
-
III, Short-term receivables
63,379,448
58,668,325
1, Accounts receivable from customers
63,184,402
58,603,711
IV, Inventories
54,186,174
58,338,305
93,791,404
85,028,803
70,933
69,603
80,985,694
74,263,413
TOTAL ASSETS
233,812,181
221,487,496
A, LIABILITIES
184,820,115
162,149,004
172,319,632
151,731,594
A, CURRENT ASSETS
I, Cash and cash equivalents
B, LONG-TERM ASSETS
1, Long-term receivable
2, Fixed assets
I, Short-term liabilities
89,569,492
76,346,767
185,553
576,216
II, Long-term liabilities
12,500,483
10,417,410
1, Long-term loans and debts
10,257,905
8,396,358
2,242,578
2,021,052
48,992,066
59,338,492
233,812,181
221,487,496
1, Short-term loans and debts
2, Taxes payable to State Treasury
2, Science and technology development fund
B, EQUITY
TOTAL LIABILITIES AND OWNER'S EQUITY
88
2019
Net sales
427,257,471
428,302,997
Cost of goods sold
416,771,796
406,171,834
10,485,675
22,131,163
400,185
93,904
Expenses from financial activities
3,262,916
3,702,528
Interest expenses
2,925,341
2,694,248
Selling expenses
1,593,849
1,506,336
Administration expenses
6,030,891
5,457,956
-1,796
11,558,247
Profit before tax
206,130
11,221,152
Current income tax expenses
138,658
1,973,873
-
-
67,472
9,247,279
Gross margin
Income from financial activities
Profit from operation
Income tax expenses is deferred
Net profit after tax
CASHFLOW STATEMENT
Unit: USD
2018
2019
I, Cash flows from operating activities
Cash flows from operating activities
3,771,828
19,116,401
-6,754,611
-5,321,297
6,468,509
-16,711,724
3,485,726
-2,916,620
II, Cash flows from investment activities
Cash flows from investment activities
III, Cash flows from financial activities
Cash flows from financial activities
Effects from exchange rate difference
Net cash flows during the fiscal year
*Exchange rate: USD/VND = 23,230
VIETNAM AUTOMOBILES MARKET REPORT
2018
Financial statement
SUMI-HANEL WIRING SYSTEMS CO., LTD
INCOME STATEMENT
Unit: USD
BALANCE SHEET
Unit: USD
2018
2019
2018
Net sales
356,189,388
399,114,540
Cost of goods sold
338,289,795
378,095,867
17,899,593
21,018,672
1,079,956
1,275,609
952,707
563,150
57,295,975
63,690,575
1,462,995
2,397,541
II, Short-term investment
-
-
III, Short-term receivables
38,667,233
38,676,233
1, Accounts receivable from customers
38,402,886
38,483,448
IV, Inventories
16,173,203
20,031,816
32,076,132
28,669,569
323,774
330,033
24,659,575
24,240,073
TOTAL ASSETS
89,372,107
92,360,144
A, LIABILITIES
66,092,481
65,426,204
62,334,491
62,993,556
Unit: USD
14,984,143
10,945,435
I, Cash flows from operating activities
697,551
1,945,768
3,757,990
2,432,648
1,881,331
2,207,974
B, EQUITY
23,279,626
26,933,940
Effects from exchange rate difference
TOTAL LIABILITIES AND OWNER'S EQUITY
89,372,107
92,360,144
Net cash flows during the fiscal year
A, CURRENT ASSETS
I, Cash and cash equivalents
B, LONG-TERM ASSETS
1, Long-term receivable
2, Fixed assets
I, Short-term liabilities
1, Short-term loans and debts
2, Taxes payable to State Treasury
II, Long-term liabilities
1, Long-term loans and debts
2, Science and technology development fund
Gross margin
Income from financial activities
Expenses from financial activities
558,245
350,651
Selling expenses
4,425,900
5,397,762
Administration expenses
5,339,240
6,121,430
Profit from operation
8,261,701
10,211,939
Profit before tax
8,239,068
10,314,951
Current income tax expenses
1,224,382
1,470,209
-2,020
77,796
7,016,707
8,766,946
Interest expenses
Income tax expenses is deferred
Net profit after tax
CASHFLOW STATEMENT
Cash flows from operating activities
89
2018
2019
8,685,756
16,623,934
-9,776,638
-4,219,005
-9,626
-11,525,076
-1,100,507
879,853
II, Cash flows from investment activities
Cash flows from investment activities
III, Cash flows from financial activities
Cash flows from financial activities
*Exchange rate: USD/VND = 23,230
VIETNAM AUTOMOBILES MARKET REPORT
2019
Financial statement
VIETNAM PRECISION INDUSTRIAL NO.1 CO, LTD
INCOME STATEMENT
Unit: USD
BALANCE SHEET
Unit: USD
2018
2019
146,365,632
168,585,158
Cost of goods sold
122,360,886
140,633,670
24,004,747
27,951,488
3,402,945
2,477,866
253,291
552,040
80,180,818
I, Cash and cash equivalents
13,262,424
21,584,174
Income from financial activities
II, Short-term investment
10,288,420
11,622,901
Expenses from financial activities
III, Short-term receivables
25,996,151
23,388,358
1, Accounts receivable from customers
22,608,053
22,291,480
IV, Inventories
20,580,361
20,110,634
49,223,552
56,957,782
B, LONG-TERM ASSETS
Gross margin
106,309
306,575
Selling expenses
1,507,196
1,626,910
Administration expenses
3,294,514
3,994,512
Profit from operation
22,352,690
24,255,893
Profit before tax
22,518,475
24,867,980
4,550,664
4,033,424
17,967,811
20,834,556
Interest expenses
Current income tax expenses
1, Long-term receivable
Income tax expenses is deferred
34,887,550
43,295,698
TOTAL ASSETS
122,148,756
137,138,600
A, LIABILITIES
38,558,511
32,713,799
38,558,511
32,713,799
Unit: USD
I, Cash flows from operating activities
2, Fixed assets
I, Short-term liabilities
1, Short-term loans and debts
6,924,338
12,902,753
2, Taxes payable to State Treasury
1,345,661
357,644
CASHFLOW STATEMENT
Cash flows from operating activities
Cash flows from investment activities
1, Long-term loans and debts
2018
2019
13,250,178
20,259,739
-9,927,255
-17,919,957
-4,369,724
5,978,415
-1,046,801
8,318,197
III, Cash flows from financial activities
2, Science and technology development fund
TOTAL LIABILITIES AND OWNER'S EQUITY
Net profit after tax
II, Cash flows from investment activities
II, Long-term liabilities
B, EQUITY
2019
Net sales
72,925,204
A, CURRENT ASSETS
2018
Cash flows from financial activities
83,590,245
104,424,801
Effects from exchange rate difference
122,148,756
137,138,600
Net cash flows during the fiscal year
*Exchange rate: USD/VND = 23,230
VIETNAM AUTOMOBILES MARKET REPORT
90
Financial statement
TOYOTA BOSHOKU HANOI CO., LTD
INCOME STATEMENT
Unit: USD
BALANCE SHEET
Unit: USD
2019
31,787,754
10,779,665
15,111,246
II, Short-term investment
-
-
III, Short-term receivables
11,621,152
10,621,589
1, Accounts receivable from customers
11,440,257
9,306,911
7,395,506
6,038,447
8,295,553
8,277,835
I, Cash and cash equivalents
IV, Inventories
B, LONG-TERM ASSETS
7,867,569
7,453,607
TOTAL ASSETS
38,091,876
40,065,589
A, LIABILITIES
11,204,039
11,139,307
10,859,975
10,705,462
2, Fixed assets
I, Short-term liabilities
118,796,461
Cost of goods sold
94,193,316
99,959,623
Gross margin
16,815,406
18,836,838
432,251
507,841
-
26,335
Selling expenses
3,744,468
4,041,641
Administration expenses
2,323,939
2,664,453
Profit from operation
11,179,250
12,612,250
Profit before tax
11,186,964
12,617,160
2,323,261
2,614,875
8,863,703
10,002,285
Income from financial activities
Expenses from financial activities
Interest expenses
Current income tax expenses
1, Long-term receivable
Income tax expenses is deferred
Net profit after tax
CASHFLOW STATEMENT
Unit: USD
Cash flows from operating activities
1,027,446
555,528
344,065
433,846
344,065
433,846
B, EQUITY
26,887,836
28,926,282
Effects from exchange rate difference
TOTAL LIABILITIES AND OWNER'S EQUITY
38,091,876
40,065,589
Net cash flows during the fiscal year
II, Long-term liabilities
1, Long-term loans and debts
2, Science and technology development fund
2018
2019
I, Cash flows from operating activities
1, Short-term loans and debts
2, Taxes payable to State Treasury
2019
111,008,721
Net sales
2018
29,796,323
A, CURRENT ASSETS
2018
91
13,756,349
-1,680,687
-1,488,957
-5,208,782
-7,963,840
1,137,041
4,303,552
II, Cash flows from investment activities
Cash flows from investment activities
III, Cash flows from financial activities
Cash flows from financial activities
*Exchange rate: USD/VND = 23,230
VIETNAM AUTOMOBILES MARKET REPORT
8,026,509
Financial statement
GS BATTERY VIET NAM CO., LTD
INCOME STATEMENT
Unit: USD
BALANCE SHEET
Unit: USD
2018
2019
87,805,220
103,601,922
Cost of goods sold
66,099,646
80,190,400
Gross margin
21,705,575
23,411,522
1,254,790
1,588,084
612,167
405,958
Selling expenses
6,910,214
8,209,385
Administration expenses
2,309,346
2,303,069
Profit from operation
13,128,638
14,081,194
Profit before tax
13,140,399
14,096,093
2,404,167
2,703,312
10,736,232
11,392,781
47,536,017
3,977,950
11,225,016
Income from financial activities
II, Short-term investment
25,942,316
19,328,455
Expenses from financial activities
III, Short-term receivables
3,964,381
5,465,096
1, Accounts receivable from customers
3,143,910
3,695,192
13,302,886
10,941,517
18,821,346
21,014,294
I, Cash and cash equivalents
IV, Inventories
B, LONG-TERM ASSETS
15,747,991
15,311,808
TOTAL ASSETS
66,444,986
68,550,311
A, LIABILITIES
8,195,609
9,644,385
7,901,194
9,352,899
2, Fixed assets
I, Short-term liabilities
Interest expenses
Current income tax expenses
1, Long-term receivable
Income tax expenses is deferred
Net profit after tax
CASHFLOW STATEMENT
Unit: USD
Cash flows from operating activities
1,879,833
1,039,936
294,415
291,486
294,415
291,486
B, EQUITY
58,249,377
58,905,926
Effects from exchange rate difference
TOTAL LIABILITIES AND OWNER'S EQUITY
66,444,986
68,550,311
Net cash flows during the fiscal year
II, Long-term liabilities
1, Long-term loans and debts
2, Science and technology development fund
2018
2019
I, Cash flows from operating activities
1, Short-term loans and debts
2, Taxes payable to State Treasury
2019
Net sales
47,623,640
A, CURRENT ASSETS
2018
92
15,238,647
-1,082,480
2,718,514
-8,753,788
-10,736,232
1,316,410
7,220,929
II, Cash flows from investment activities
Cash flows from investment activities
III, Cash flows from financial activities
Cash flows from financial activities
*Exchange rate: USD/VND = 23,230
VIETNAM AUTOMOBILES MARKET REPORT
11,152,678
Financial statement
HARADA INDUSTRIES VIETNAM CO., LTD
INCOME STATEMENT
Unit: USD
BALANCE SHEET
Unit: USD
A, CURRENT ASSETS
I, Cash and cash equivalents
2018
2019
22,457,996
22,874,404
658,730
1,837,485
2018
Net sales
75,267,257
84,305,847
Cost of goods sold
68,541,674
79,406,308
6,725,583
4,899,539
29,568
18,418
122,595
309,398
Gross margin
Income from financial activities
Expenses from financial activities
II, Short-term investment
103,467
249,264
1,740,389
1,774,903
814,279
952,843
Profit from operation
4,077,887
1,880,814
Profit before tax
4,148,210
1,489,205
Current income tax expenses
834,336
1,352,268
Income tax expenses is deferred
-77,911
35,017
3,391,785
101,920
Interest expenses
10,010,488
10,522,806
9,812,072
10,483,168
IV, Inventories
11,657,762
10,176,242
B, LONG-TERM ASSETS
5,384,113
7,496,388
529,788
529,629
3,775,815
6,326,457
TOTAL ASSETS
27,842,109
30,370,792
A, LIABILITIES
16,236,374
19,675,820
16,101,652
19,532,536
Unit: USD
4,494,189
10,971,588
I, Cash flows from operating activities
2, Taxes payable to State Treasury
531,366
243,758
II, Long-term liabilities
134,722
143,284
134,722
143,284
B, EQUITY
11,605,736
10,694,972
Effects from exchange rate difference
TOTAL LIABILITIES AND OWNER'S EQUITY
27,842,109
30,370,792
Net cash flows during the fiscal year
III, Short-term receivables
1, Accounts receivable from customers
1, Long-term receivable
2, Fixed assets
I, Short-term liabilities
1, Short-term loans and debts
1, Long-term loans and debts
2, Science and technology development fund
Selling expenses
Administration expenses
Net profit after tax
CASHFLOW STATEMENT
Cash flows from operating activities
93
2018
2019
1,574,719
-314,781
-2,259,090
-4,039,167
991,132
5,499,720
306,761
1,145,772
II, Cash flows from investment activities
Cash flows from investment activities
III, Cash flows from financial activities
Cash flows from financial activities
*Exchange rate: USD/VND = 23,230
VIETNAM AUTOMOBILES MARKET REPORT
2019
Financial statement
HANOI PLASTICS JOINT STOCK COMAPY
INCOME STATEMENT
Unit: USD
BALANCE SHEET
Unit: USD
2018
2019
2018
Net sales
46,739,376
51,837,654
Cost of goods sold
41,514,229
46,772,165
5,225,147
5,065,489
466,568
1,212,776
40,325
1,301,756
17,497,413
18,823,491
I, Cash and cash equivalents
855,484
600,161
II, Short-term investment
860,956
2,001,722
III, Short-term receivables
12,466,348
12,381,803
1, Accounts receivable from customers
6,324,178
7,736,070
IV, Inventories
3,059,658
3,481,020
5,274,157
23,042,191
-
5,469,806
Current income tax expenses
3,288,407
6,450,045
Income tax expenses is deferred
TOTAL ASSETS
22,771,570
41,865,683
A, LIABILITIES
8,262,806
21,787,216
8,262,806
16,885,442
Unit: USD
2,000,785
10,543,892
I, Cash flows from operating activities
203,197
195,440
II, Long-term liabilities
-
4,901,774
1, Long-term loans and debts
-
4,901,774
B, EQUITY
14,508,765
20,078,466
Effects from exchange rate difference
TOTAL LIABILITIES AND OWNER'S EQUITY
22,771,570
41,865,683
Net cash flows during the fiscal year
A, CURRENT ASSETS
B, LONG-TERM ASSETS
1, Long-term receivable
2, Fixed assets
I, Short-term liabilities
1, Short-term loans and debts
2, Taxes payable to State Treasury
2, Science and technology development fund
Gross margin
Income from financial activities
Expenses from financial activities
30,959
591,350
Selling expenses
1,810,593
1,492,420
Administration expenses
1,259,282
1,471,661
Profit from operation
2,581,515
2,012,427
Profit before tax
2,986,765
2,022,669
553,978
496,212
-
-
2,432,787
1,526,457
Interest expenses
Net profit after tax
CASHFLOW STATEMENT
Cash flows from operating activities
Cash flows from investment activities
2019
2,503,726
-1,471,220
-6,742,985
-16,406,894
14,110
17,622,824
-4,225,149
-255,290
III, Cash flows from financial activities
*Exchange rate: USD/VND = 23,230
94
2018
II, Cash flows from investment activities
Cash flows from financial activities
VIETNAM AUTOMOBILES MARKET REPORT
2019
Financial statement
INOAC VIETNAM CO., LTD
INCOME STATEMENT
Unit: USD
BALANCE SHEET
Unit: USD
2018
2019
19,592,712
22,352,550
2,758,865
3,464,847
II, Short-term investment
-
-
III, Short-term receivables
11,043,691
12,318,105
1, Accounts receivable from customers
10,771,166
11,984,291
5,463,492
6,175,172
26,148,916
26,223,976
533,780
534,512
20,469,569
20,797,923
TOTAL ASSETS
45,741,627
48,576,525
A, LIABILITIES
24,004,221
22,388,148
16,933,075
17,377,544
A, CURRENT ASSETS
I, Cash and cash equivalents
IV, Inventories
B, LONG-TERM ASSETS
1, Long-term receivable
2, Fixed assets
I, Short-term liabilities
2018
Net sales
46,046,995
50,719,875
Cost of goods sold
37,634,019
38,734,944
8,412,975
11,984,931
Income from financial activities
137,807
502,422
Expenses from financial activities
633,363
672,603
Gross margin
335,610
343,565
Selling expenses
3,206,288
3,399,296
Administration expenses
2,990,116
2,904,016
Profit from operation
1,721,016
5,511,438
Profit before tax
1,752,784
5,662,563
225,291
1,172,850
-
-
1,527,493
4,489,713
Interest expenses
Current income tax expenses
Income tax expenses is deferred
Net profit after tax
CASHFLOW STATEMENT
Unit: USD
3,786,277
130,784
468,618
II, Long-term liabilities
7,071,146
5,010,604
1, Long-term loans and debts
7,044,972
4,985,091
26,174
25,513
B, EQUITY
21,737,406
26,188,378
Effects from exchange rate difference
TOTAL LIABILITIES AND OWNER'S EQUITY
45,741,627
48,576,525
Net cash flows during the fiscal year
2, Taxes payable to State Treasury
2, Science and technology development fund
Cash flows from operating activities
95
2019
3,396,239
6,142,388
-3,239,141
-2,274,582
-2,352,453
-3,151,501
-2,195,355
716,306
II, Cash flows from investment activities
Cash flows from investment activities
III, Cash flows from financial activities
Cash flows from financial activities
*Exchange rate: USD/VND = 23,230
VIETNAM AUTOMOBILES MARKET REPORT
2018
I, Cash flows from operating activities
4,885,861
1, Short-term loans and debts
2019
Financial statement
SUMMIT AUTO SEATS INDUSTRY CO., LTD
INCOME STATEMENT
Unit: USD
BALANCE SHEET
Unit: USD
2018
2019
3,983,961
4,028,620
168,714
210,937
II, Short-term investment
3,240,529
3,231,644
III, Short-term receivables
307,990
242,965
1, Accounts receivable from customers
154,819
150,931
IV, Inventories
251,739
312,545
368,926
609,575
-
-
149,008
360,172
4,352,888
4,638,195
A, LIABILITIES
267,953
1,015,073
I, Short-term liabilities
266,434
1,013,019
A, CURRENT ASSETS
I, Cash and cash equivalents
B, LONG-TERM ASSETS
1, Long-term receivable
2, Fixed assets
TOTAL ASSETS
-
-
12,437
5,578
1,518
2,054
-
-
1,518
2,054
B, EQUITY
4,084,935
3,623,122
TOTAL LIABILITIES AND OWNER'S EQUITY
4,352,888
4,638,195
1, Short-term loans and debts
2, Taxes payable to State Treasury
II, Long-term liabilities
1, Long-term loans and debts
2, Science and technology development fund
96
2019
Net sales
2,961,680
2,391,905
Cost of goods sold
1,713,422
1,296,127
Gross margin
163,645
189,079
Income from financial activities
224,024
226,290
39,741
64,622
Expenses from financial activities
-
-
20,476
14,013
Administration expenses
129,798
147,504
Profit from operation
197,654
189,230
Profit before tax
198,334
190,137
20,660
23,013
-
-
177,674
167,124
Interest expenses
Selling expenses
Current income tax expenses
Income tax expenses is deferred
Net profit after tax
CASHFLOW STATEMENT
Unit: USD
2018
2019
I, Cash flows from operating activities
Cash flows from operating activities
70,434
543,234
-8,812
127,937
II, Cash flows from investment activities
Cash flows from investment activities
III, Cash flows from financial activities
-
-628,937
Effects from exchange rate difference
61,622
42,234
Net cash flows during the fiscal year
61,622
42,234
Cash flows from financial activities
*Exchange rate: USD/VND = 23,230
VIETNAM AUTOMOBILES MARKET REPORT
2018
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VIETNAM AUTOMOBILES MARKET REPORT
97
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