Ninh Binh proactively removes difficulties for the automobile industry

Customs Area X proactively grasps and shares the difficulties of Hyundai Thanh Cong Vietnam Automobile Manufacturing Joint Stock Company. Photo: Anh Tuan

HTCV is a joint venture between Hyundai Motor Group of Korea and Thanh Cong Group (Gian Khau Industrial Park, Gia Vien District). With two modern factory complexes, designed capacity of 180,000 vehicles/year, the Company is manufacturing and distributing strategic car lines such as Palisade, Santafe, Tucson, Elantra, Creta, Accent, Grand i10... In addition, in early 2025, the Company has completed the installation of the engine assembly line, expected to go into mass production next May, as a premise to research a number of projects to markets such as Malaysia, Brazil, Kazakhstan, Laos...

Recently, in addition to distributing in the domestic market, Hyundai Thanh Cong is researching to expand exports to new markets to diversify consumption channels and reduce dependence on traditional markets. At the same time, it has successfully exported to some ASEAN countries, including exporting finished Palisade and Santafe hybrid cars to Thailand and semi-finished SKD models Accent and Creta to Myanmar.

In 2024, HTCV's revenue will reach nearly VND6,500 billion, with more than 9,900 vehicles sold, of which nearly VND150 billion will be exported. It is expected that in 2025, revenue will reach VND6,861 billion, with an estimated sales volume of about 11,000 vehicles. These figures show the strong vitality of the enterprise, and also reflect the importance of removing barriers to create conditions for HTCV to develop more sustainably.

Automobile assembly line at Hyundai Thanh Cong Automobile Factory No. 2. Photo: Nguyen Thom

Mr. Nguyen Minh Son, General Director of Hyundai Thanh Cong Vietnam Factory, shared: In fact, HTCV's production and export activities are facing many major challenges. Enterprises are facing unstable logistics costs and taxes related to import and export, which directly affect production and business efficiency. In the context of frequent fluctuations in international freight rates, especially container costs and seaport fees increasing sharply during peak times or due to the impact of geopolitical conflicts, it is difficult for enterprises to plan long-term and stabilize product prices. Port infrastructure fees in Vietnam are still high and vary by locality, increasing total export costs.

“Currently, our distribution activities are still mainly focused on domestic and export to some ASEAN countries, so there will be no direct impact. However, the US tax policy can indirectly affect the global supply chain, including Vietnam. In addition, our production model depends heavily on imported components and spare parts, so it requires a lot of foreign currency. If the foreign exchange market fluctuates, the car market will be somewhat affected. Car prices will change,” said the General Director of Hyundai Thanh Cong Vietnam Factory.

Faced with this reality, Ninh Binh province has implemented many practical solutions to resolve difficulties for Hyundai Thanh Cong. Accordingly, in recent times, the province has focused on developing synchronous and flexible industrial infrastructure. In particular, the province has invested in and completed the infrastructure of Gian Khau Industrial Park and the expanded Gian Khau Industrial Park with a synchronous transportation, electricity, water and telecommunications system. At the same time, the province is also studying the planning and expansion of industrial parks to create clean land funds to serve the expansion of production lines, especially the development of automobile supporting industries.

Regarding customs clearance of goods, in response to the proposal of enterprises, the functional units of the province, especially Ninh Binh Customs, have coordinated to arrange personnel to work overtime (including Saturdays and Sundays when necessary) to support enterprises in completing import and export procedures in a timely manner, avoiding congestion of goods.

The Provincial People's Committee has directed the Department of Industry and Trade to coordinate with central ministries and branches to organize training courses and provide updated information on Free Trade Agreements (FTAs), helping businesses grasp the rules of origin, take advantage of tax incentives and access new markets. This is an important basis for improving competitiveness, taking advantage of FTAs ​​and expanding export markets in the current difficult context.

In addition, local authorities actively support legal procedures, issue and renew investment registration certificates for new and expanded projects of HTCV, creating conditions for enterprises to increase capacity, deploy more component complexes and engine lines, and move towards deeper production and higher localization.

For macro policy proposals that are not within the scope of resolution, Ninh Binh province has proactively synthesized opinions from businesses to propose to the Central Government to adjust tax and fee policies in accordance with production reality. At the same time, the province plays the role of a bridge in meetings between businesses and ministries and branches on export strategies, supporting industries and electric car market development.

To achieve the target of double-digit economic growth in 2025, all levels and sectors in the province need to continue to accompany businesses, increase the provision of information, legal advice, technical support and represent the common voice of businesses, so that Hyundai Thanh Cong can stabilize production, maintain jobs and make the highest contribution to the province's export growth.

Nguyen Thom

Source: https://baoninhbinh.org.vn/ninh-binh-chu-dong-thao-go-kho-khan-cho-nganh-cong-nghiep-o-573425.htm