TOKYO: Japanese automobile manufacturers have discussed the possibility of relocating their factories to regional countries because of Vietnam’s weak supporting industries.
Jetro’s (Japan External Trade Organization) Chief Representative Takimoto Koji, meeting the local press said that some Japanese automobile manufacturers are considering leaving Vietnam because of problems in tax policies and underdevelopment of Vietnam’s support industries.
There are four Japanese invested automobile enterprises in Vietnam, namely Toyota, Mazda, Honda and Suzuki. Jetro did not say exactly which enterprises were considering leaving Vietnam.
Meanwhile, other automobile manufacturers are considering importing cars from ASEAN to sell domestically instead of maintaining production lines in Vietnam.
Meanwhile, a production line needs to churn out 200,000 products a year at least to bring profit.
While affirming that many investors wanted to invest in Vietnam’s automobile industry, Koji said the investment trend may change because the supporting industries in Vietnam have not improved.
The enterprises making cars in Vietnam may leave for Indonesia, Thailand or Malaysia.
