Prime Minister Pham Minh Chinh expressed his hope that the Czech Republic’s Skoda Auto a.s. would help develop Vietnam’s automotive industry ecosystem at a reception in Hanoi on March 27 for its Chairman and CEO Klaus Zellmer.
PM Chinh encouraged the company to manufacture not only passenger cars but also other types of vehicles, engines, and components for automobile factories in Vietnam, leveraging the country as a strategic base to expand its reach across Southeast Asia.
Recalling their discussions in Prague in January during the PM’s official visit to the Czech Republic, he welcomed the official inauguration of Thanh Cong Viet Hung auto plant on March 26, hailing it as a concrete step forward in the Vietnam-Czech Republic cooperation, especially after the two countries agreed to elevate their relationship to a Strategic Partnership.
The PM highlighted Vietnam’s focus on increasing the rate of locally-made items and technological content, promoting green transition and digital transformation in manufacturing, with a key priority being the development of the automotive industry to drive sustainable transport, including the adoption of electric vehicles (EVs).
The Vietnamese Government is committed to supporting businesses and ensuring a lawful, healthy, and efficient investment environment by listening to feedback, fostering mutual understanding, and improving cooperation effectiveness, PM Chinh said.
He called on Skoda Auto to diversify its product range, including railcars, commercial vehicles, and machinery for small and medium-sized enterprises (SMEs); consider partnership opportunities to help Vietnamese firms deepen their integration into Skoda and Volkswagen’s production and supply chains, particularly in Southeast Asia; and adapt vehicle designs to suit market trends and consumer preferences in both Vietnam and Southeast Asia.
The government leader also underscored the role of heavy industry, led by Thanh Cong Group and partners, in supporting automotive manufacturing. He urged Skoda Auto to transfer advanced technologies and smart production lines, train quality workforce in metallurgy and mechanical engineering, and expand business operations in sectors where Vietnam has needs and Skoda Auto has expertise in the spirit of harmonising benefits and sharing risks.
For his part, Zellmer described Skoda Auto’s status as the largest automaker in the Czech Republic, with annual sales topping 1 million vehicles across over 100 countries and territories. As part of Germany's Volkswagen Group since 1991, Skoda Auto has played an important role in the conglomerate's EV development and digitalisation strategy, with a considerable footprint in European and Indian markets.
Skoda Auto's cooperation agreement with the Thanh Cong Group, signed in 2022, aims to increase the localisation rate, adopt modern technologies, and promote clean energy. Following the September 2023 launch of its first imported models in Vietnam, Skoda Auto plans to ramp up its investment and business operations, particularly in battery production and key input components, he said.
Fully agreeing with the PM’s proposals, Zellmer said Skoda Auto’s business success in Vietnam is just a starting point, and he looked forward to filling in the missing pieces to complete Vietnam’s automotive industry ecosystem.
He wished that Vietnam would keep upgrading infrastructure, including seaports, logistics, and quality workforce, to sustain its auto industry’s long-term growth./.
