Toyota Motor Vietnam will keep its option open on the future of its manufacturing and assembly plants after zero import tax on cars is enforced in all Southeast Asian countries.
The world’s largest car maker is pondering its investment in Vietnam after the Association of Southeast Asian Nations slashes the import levy on cars to zero in 2018 under the Asean Free Trade Agreement.
The scheme will make imported cars cheaper than locally assembled vehicles in Vietnam and that was the central issue that the Japanese firm will have to consider, the Vietnam News reported on Thursday, citing Toyota Motor Vietnam general director Yoshihisa Maruta.
Toyota Motor Vietnam will decide whether to continue with its plants this year after consulting members of the Vietnam Automobile Manufacturers’ Association, added Mr Maruta, who also is the association chairman.
Mr Maruta pointed to a lack of supporting industries which hampered competitiveness in Vietnam, the Thanh Nieh Daily said.
“To answer the question ‘Will Toyota continue to make cars in Vietnam?’, we will have to wait for detailed automobile industry development strategies from the Vietnamese government,” the online newspaper quoted him as saying.
Toyota sold more than 41,200 cars in Vietnam last year, accounting for 31% of the market share in the country.