Deputy PM Hue encourages increased automotive localisation rate

Wednesday, 2016-08-10 13:57:56
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Deputy PM Vuong Dinh Hue (centre) inspects a model of Truong Hai BRT buses. (Credit: VGP)
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NDO – Deputy Prime Minister Vuong Dinh Hue visited Truong Hai Auto Manufacture and Assembly Complex in the central province of Quang Nam’s Chu Lai Economic Zone on August 9 during his working trip to the central locality.

>>> New international container shipping route opens in Quang Nam

Reporting to the deputy PM, Chairman of Managing Board and General Director Tran Ba Duong of Truong Hai said that this year the company aims to generate an output of more than 112,000 vehicles, collecting a revenue of about US$3 billion and contributing more than VND20 trillion to the State budget.

Established in 1997, Truong Hai has expanded its operations in recent years, focusing on technology transfer and investment in spare parts to increasing the localisation rate of its products. Currently, the localisation rates of Truong Hai made products are at 60% for buses and 42% for trucks.

Its automobile market share is currently at 42.8%. For buses, Truong Hai dominates the market with a share of nearly 60%. The number of vehicles sold has continuously increased in the last five years, reaching more than 80,000 in 2015 and more than 112,000 expected this year.

The company has diversified its investment in logistics. Last week, it launched container shipping line between Chu Lai and the Republic of Korea and kicked off an expansion project for Chu Lai-Truong Hai port.

Speaking during the visit, Deputy PM Hue praised Truong Hai growth in recent years, which has significantly contributed to local socio-economic development in particular and the country’s development in general.

 

He urged the company to promote research and seek innovation in automobile production technology, focusing on models with competitive advantages, while pouring further investment into car engine manufacturing and increasing the localisation rate of automotive component production to penetrate deeper into the international market.