The government has changed its development strategy for the automobile industry, given the fact that it’s not feasible to produce one entire car in Vietnam.

The plant, considered one of the most important projects of Hyundai, is invested with an estimated VND3.2 trillion (US$137.44 million) and able to produce 100,000 vehicles per year.

Vietnam’s molding and precision engineering industries generate revenue of over US$1 billion per year with annual growth of 18%.

Vietnam imported 39,000 cars worth US$879 million in the first half of the year, down 47% year-on-year in volume and 47.7% in value.

The move would help support the development of local supporting industries, particularly the automobile manufacturing and assembling in the 2019 – 2023 period.

Under the growing impacts of the pandemic, market demand is forecast to plunge, while oversupply and the burden of liquidating inventories would lead to lower selling prices.

Fitch Solutions has forecast that Vietnam's automotive market will remain robust in 2020, as an improved credit outlook and declining vehicle prices all support higher vehicle demand.

The year of 2019 was a difficult period for Vietnam’s auto market, but also marked positive performances of most local car producers.

Foreign investment in six priority industries under the industrialization strategy accounted for 27% of total registered capital in Vietnam from 2013 to March 2019, focusing on electronics, automobiles and energy saving.