Secretary of the provincial Party Committee Hoang Thi Thuy Lan works with the General Director of Honda Vietnam on developing the automobile supporting industry

Thanks to the support of Vietnam Government, the support of Vinh Phuc province to Honda Vietnam Company in preventing the corona pandemic and recovering production after the quarantine due to the outbreak of Covid-19, Mr. Keisuke Tsuruzono, General Director of Honda Vietnam company said that, with the stable economic growth rate, the automobile industry in Vietnam is expanded and the car market is expected to grow strongly in the future. On average each year, Vietnam consumes approximately 3.3 million of motorbikes, more than 228.000 cars and Honda Vietnam is now the top center of the world in exporting motorbikes. In the meantime, the company has 140 accessory suppliers and Vinh Phuc has 4 suppliers that are Vietnam Precision industrial no.1 company, Lam Vien Winfull company. LTD,  Cosmo Industrial Company.LTD and first rubber (Vietnam) Company Limited. However, the market size of cars in Vietnam is still small and the supporting industry has not flourished yet. Cars production in Honda Vietnam is still at an early stage, localization rate is low and it is harsh to compete in terms of price against imported accessories.

During the working session, Honda Vietnam company has proposed that the Government of Vietnam, Vinh province should introduce a policy which supports engine assembling, in order to increase the opportunities for accessory suppliers in the country; research and adjust excise tax law, exempt excise tax in the nation and that this policy should be imposed based on periods. Coupled with tax policy that assists automobile accessory suppliers in increasing productions and expanding marketplaces in Vietnam. 

Highly appreciating the contribution of Honda Vietnam to the development of provincial economy – society in recent years, the provincial party secretary Hoang Thi Thuy Lan expressed that Vinh Phuc province deeply emphasized the difficulties and expectation of Honda Vietnam in expanding production scale, rising localization rate and enhancing tax-related policy. With all the petitions, province will report to the Government, leaders and departments to consider.