In the "Vietnam Economic Update Report 2019-2020", the Central Institute for Economic Management (CIEM) marks that the GDP growth rate in 2019 reached about 7.2%, the average inflation rate was about 2.78%, and the export growth rate was 8.13% The trade balance was about $ 4.2 billion. This was not only higher than the Vietnamese government's original estimated economic growth rate (6.8%), but also outstood in the global downturn.
Asian Development Bank believes that Vietnam is one of the few countries in Asia that will keep economic growth rates of 6.8% and 6.7% in 2019 and 2020. This is a high level of growth compared to many countries in the region and in big part a result of high increase of trade surplus seen in recent years.
Between 2018 and 2025, it is estimated that the domestic automobile manufacturing industry will grow at a rate of about 18.5% per year, and between 2025 and 2035 will grow at a rate of 13.8%. By 2025, automobile production will reach nearly 531,600 vehicles. It will reach 1.76 million by 2035. With the growth of the middle class, car sales will respectively increase by 22.6% and 18.5% each year from now to 2025.
According to statistics, there are 56 automotive production and assembly plants nationwide in Vietnam, including 18 foreign-funded enterprises and 38 domestic-funded enterprises with annual output of 460,000 vehicles. As for the Vietnam automotive supporting capabilities, there are currently around 210 automotive component manufacturers in the country, mainly small and medium enterprises. Compared with Thailand and Indonesia, there is still much room for improvement.
However, Vietnam is the 4th largest motorcycle market in the world. There are currently about 45 million motorcycles in Vietnam. The motorcycle market in 2018 reached a new high year record in history with about 3.4 million motorcycle sold. According to the Vietnam Motorcycle Association, the Vietnam motorcycle market is close to saturation, but the high-end motorcycle market will be another target that can be developed.
In 2018, the Vietnamese government launched the "Automobile Industry Development Strategy and Master Plan" to strongly assist the development of the domestic automotive manufacturing industry. However, Vietnam has only just begun its industrial development. Major equipment needs to be imported from foreign countries - which makes it the best time to enter the Vietnamese market.
Agenda of this conference focuses on the global hot topics-smart manufacturing and electric vehicles in perspective of real applications for Vietnamese market. It is hoped that local Vietnamese companies can improve their manufacturing efficiency, integrate with the international market, and enter the global industry chain.