Among the six joint ventures engaged in manufacturing and assembling automobiles in Vietnam, only Honda Vietnam has the highest rate of using domestically made materials.
Workers assembling a car at Honda Vietnam. The joint venture has the highest rate of using domestically made materials.
An inspection by the Ministry of Industry and Trade shows that the rate at Honda Vietnam was ten percent, while it was at only two percent at Ford Vietnam, three percent at Vietnam-Suzuki, and four percent at Vietnam Deawoo and Ngoi Sao.
These rates are much lower than the rates of 20-40 percent that were previously announced by the companies themselves, which were also targets set by the Ministry of Industry and Trade.
A roadmap for using local material in production was part of the investment licenses granted to those companies, but they have ignored it, which is partly due to lax oversight by agencies concerned, said the Finance Ministry.
In addition, five of the six companies have not complied with many of the book-keeping regulations and laws, the Finance Ministry added.