Deputy Prime Minister Trinh Dinh Dung has asked South Korean carmaker Hyundai Motor Company to promote technology transfer to its local partners in Viet Nam and increase its localisation rate to a minimum of 40 per cent.

At a meeting with Jin Haeng Chung, Hyundai Group’s vice chairman on Saturday, Dung affirmed that developing the automobile industry is a key policy in Viet Nam’s industrialisation strategy with priorities given to local automobile production and consumption.

New policies would be developed based on principles of promoting consistency, continuity, transparency, predictability, competitiveness and attractiveness to ensure the development of a sustainable automobile manufacturing industry, he added.

He affirmed that Hyundai and big South Korean automobile manufacturers could further join global value chains by taking advantage of Viet Nam in terms of its deep international integration, competitive input costs and big and diversified domestic market.

Vice Chairman Chung said Hyundai has serious plans for investment, technology transfer and automobile production development in Viet Nam.

Currently, Hyundai cars are assembled in Viet Nam. The firm co-operates with Thanh Cong Group to import components to produce models such as the Santa Fe, Tucson or i10.

Meanwhile, another brand, Kia (owned by Hyundai Group), was also transferred to Truong Hai-Thaco for assembly at Chu Lai economic zone. Kia models made in Viet Nam include the Morning, Cerato and Sorento.

Hyundai light trucks and heavy trucks are also assembled and manufactured in Viet Nam by Thaco and Thanh Cong. Most of Kia’s trucks and passenger cars in Viet Nam have achieved high localisation rates. For many cars, only the engines are imported, while the chassis, electronic equipment, seats and paint are locally manufactured. — VNS