Localization creates a 'boost' to open a new runway for the automobile industry

Thanks to the "boost" of localization, it has created a driving force to help businesses shorten the supply chain, transfer technology, form a modern production ecosystem, helping the Vietnamese automobile industry reach new heights. Industry and Trade Newspaper reporter had an interview with Mr. Nguyen Dang Quang - Deputy General Director of Omoda & Jaecoo Vietnam, about this issue.

*Mr. Nguyen Dang Quang - Deputy General Director of Omoda & Jaecoo Vietnam. Photo: Huong Nguyen.*

Gradually increase the localization rate

- Omoda & Jaecoo has started construction of the Hung Yen Factory, after more than 1 year of entering the Vietnamese market and considering this a 'long-term strategic foundation'. Could you share specifically about the role of this project in promoting localization, technology transfer, as well as meeting the Vietnamese Government's Strategy for the Development of the Vietnamese Automobile Industry to 2035?

Mr. Nguyen Dang Quang: At the end of October, we officially started construction of the Gel-O&J Automobile Factory in Hung Phu Industrial Park, Hung Phu Commune, Hung Yen Province. Right from the start, we determined that this factory must be a project that creates sustainable value and is developed according to the model of "Green Factory - Clean Ecosystem", with the long-term goal of gradually building Vietnam into a production center of the brand in the region.

Localization and technology transfer to meet the Vietnamese Government 's Strategy for the Development of the Vietnamese Automobile Industry to 2035 will be implemented by us according to a clear roadmap. For example, mastering the assembly line, quality control, engineering and receiving new technologies that the enterprise is deploying globally.

We prioritize human resource training, expand cooperation with domestic supporting industry enterprises, promote job creation and perfect the production ecosystem.

In the long term, when production capacity reaches stability and the supporting industrial ecosystem is consolidated, the Hung Yen factory will be a launching pad for Vietnam to meet production needs for the domestic market and towards export. This is the long-term commitment that we want to affirm: systematic investment, long-term commitment and development with the Vietnamese automobile industry.

*The Gel-O&J automobile manufacturing plant was started at Hung Phu Industrial Park, Hung Phu Commune, Hung Yen Province. Photo: Huong Nguyen.*

- The two models chosen for the first assembly phase at Hung Yen Factory are Omoda 4 and Jaecoo J5, both in the B+ SUV segment. Can you explain more specifically?

Mr. Nguyen Dang Quang: We chose the SUV B+ segment because this is a group with a large market capacity and is growing strongly in Vietnam. Users increasingly have higher demands for smart technology, safety and youthful design, ... and these features are very suitable for both Omoda 4 and Jaecoo J5.

This is also the right time for us to bring core technology to Vietnam. When these two models are assembled domestically, the supply chain will be shortened, the localization rate will increase gradually, and new resources will be added to production capacity. In addition to the product being suitable for the taste, it is important that the assembly process will help the Vietnamese technical team to approach the brand's international standards more deeply.

Starting with these two models is also a way for us to directly listen to feedback from Vietnamese customers more quickly, thereby continuing to improve the product in the next stages.

The B+ segment is a suitable starting point for the localization journey, before expanding to the next vehicle lines in our development strategy in Vietnam.

*Omoda & Jaecoo Vietnam celebrates 1 year of entering the Vietnamese market and announces the first two models expected to be assembled. Photo: Huong Nguyen.*

Vietnam is a long-term destination

- How do you evaluate the results achieved in the first year and what is the reason for the company to decide to take a new step by announcing plans to assemble two car models in Vietnam?

Mr. Nguyen Dang Quang: The first year in Vietnam is of special importance to us. In just over 12 months, the company has built a system of nearly 40 distributors nationwide, introduced the first 3 car models and created a strong user community, with more than 300 pioneer customers regularly accompanying us at events.

At the same time, we implement a leading after-sales policy, continuously expand service quality and strengthen market trust.

On that basis, the enterprise simultaneously started and implemented the factory project in Hung Yen following the model of "Green Factory - Clean Ecosystem", preparing for a long-term development strategy in Vietnam.

The rapid growth of the market, the strong support of the customer community and the guaranteed progress of the factory are the factors that created the premise for us to decide to move to a new phase, which is to announce the planned assembly of the first two models, Omoda 4 and Jaecoo J5, in Vietnam.

This is an important milestone and also the first step in the long-term strategy that we have set out since the early days of entering the Vietnamese market. When deciding to build a factory in Hung Yen, we clearly identified Vietnam as the place where we want to create real value for the automotive industry.

The factory's on-schedule implementation has helped businesses be more proactive in production, shortening supply time, and more importantly, creating conditions for direct technology transfer into the country.

Vietnamese technical staff and personnel will be more deeply involved in the production process, quality control and access to new technology platforms that the brand is applying globally. This is a way to both localize components and assemblies as well as localize knowledge, techniques and management.

Vietnam has advantages in terms of market growth rate, young workforce and rapidly developing supporting industrial ecosystem. We believe that localization now will create a foundation to better serve user needs, helping businesses to sustainably attach to the market.

Thank you!

Source: https://congthuong.vn/noi-dia-hoa-tao-cu-hich-mo-duong-bang-moi-cho-cong-nghiep-o-to-432705.html