A Detailed Analysis of the Failure If Vietnam's Automobile Industry
A DETAILED ANALYSIS OF THE FAILURE OF VIETNAM’S AUTOMOBILE INDUSTRY
(Draft version)
Dam Quang Huynh
National Economics University 1. Introduction
The Vietnamese government considered the auto industry an important factor in economy and has announced many incentive policies in order to develop this industry such as taxation and trade policies in many years. Developing auto industry promotes the development of many other supporting industry. Indeed, manufacturing a car requires 2000 to 3000 components, and it is an opportunity for other companies produce automobile parts.
Determining the automobile industry to be a important key in the country’s industrial sector, in the early 1990’s, the Vietnamese Government offered a variety of incentives to attract both domestic and foreign investor’s money in order to develop the young industry. In 2004, the Prime Minister signed Decision No. 177/2004/QD-TTG “Approving the development plan of Vietnam’s automobile industry till 2010, vision to 2020.” This was a turning-point of Vietnam auto industry after a long way of development. However, despite many expectations and privileges offered by the decree, the plan has turned out to be a bitter failure. In fact, the automobile industry in Vietnam is still stalled, it’s development hindered by major roadblocks in Vietnam’s economy and society. Thus, this research aims to analyze the causes of the failure of Vietnam auto industry. 2. Purpose of the proposal
The proposal aims to analyze causes of the failure of Vietnam auto industry by using Evaluating external environment and the five-forces model of competition analytical method. In addition, the proposal will also suggest several solutions for above problem based on the author’s knowledge and experience. 3. Method
Methods are used involving data synthesis and analysis. Data and information used in this proposal are secondary data and collected from some major source such as internet, articles and other research
(Draft version)
Dam Quang Huynh
National Economics University 1. Introduction
The Vietnamese government considered the auto industry an important factor in economy and has announced many incentive policies in order to develop this industry such as taxation and trade policies in many years. Developing auto industry promotes the development of many other supporting industry. Indeed, manufacturing a car requires 2000 to 3000 components, and it is an opportunity for other companies produce automobile parts.
Determining the automobile industry to be a important key in the country’s industrial sector, in the early 1990’s, the Vietnamese Government offered a variety of incentives to attract both domestic and foreign investor’s money in order to develop the young industry. In 2004, the Prime Minister signed Decision No. 177/2004/QD-TTG “Approving the development plan of Vietnam’s automobile industry till 2010, vision to 2020.” This was a turning-point of Vietnam auto industry after a long way of development. However, despite many expectations and privileges offered by the decree, the plan has turned out to be a bitter failure. In fact, the automobile industry in Vietnam is still stalled, it’s development hindered by major roadblocks in Vietnam’s economy and society. Thus, this research aims to analyze the causes of the failure of Vietnam auto industry. 2. Purpose of the proposal
The proposal aims to analyze causes of the failure of Vietnam auto industry by using Evaluating external environment and the five-forces model of competition analytical method. In addition, the proposal will also suggest several solutions for above problem based on the author’s knowledge and experience. 3. Method
Methods are used involving data synthesis and analysis. Data and information used in this proposal are secondary data and collected from some major source such as internet, articles and other research