Vietnam is located in Southeast Asia. It is one of the world’s most populated countries. Vietnam was a part of China for a number of years. It became independent after several decades. Vietnam was ruled by the French in the 19th century. After fighting a war with the French rulers for almost 15 years, Vietnam was again independent. Vietnam was thereafter divided politically into two states namely North and South Vietnam. The conflict among these two states brought United States in Vietnam who ruled them for almost a decade. Vietnam was finally independent after fighting a war with the United States. This war is known as the Vietnam War. Vietnam has been independent for many years now but it still faces issues like inequality of income, gender discrimination and insufficient growth in healthcare.
Over the past few years, Vietnam’s economic growth rate has been highest in the world. Vietnam was one of the poorest countries in the world over the past few decades. There has been substantial development in the growth of the economy in the past three decades. The growth has mainly been due to external sectors. This has made Vietnam a lower middle income country. Labor-incentive manufacturing units have helped in the economic development of the country. Products such as traditional garments, footwear and furniture are very popular products of Vietnam. These products are also exported in the worldwide market. Recently, Vietnam has been exporting goods like cell phones, electronics and automobile parts.
Vietnam has a majority of its companies as small and medium enterprises. These companies are major manufacturers and exporters of agricultural products. Over the past few years there has been development in the automotive industry. There have been popular car manufacturing companies entering Vietnam as sole proprietors or joint- investors.
Vietnam has a number of auto part manufactures. This was developed after 20 years. The government played an important role in the development of this industry. It introduced foreign funds and the assembly industry. This helped the manufacturers of this industry in a positive way. The manufacturer units mainly produce simple parts like seats, auto storage batteries etc. However, over the past few years there was a decrease in imported automobiles as tariffs like registration tax and import duty were imposed. Later the government lowered the tax on import of second had automobiles. The government increased the tariff on imported cars to increase the sale of domestic automobile manufacturers.
Vietnam’s competitors in the automotive industry are China, Thailand and other Southeast Asian countries. There have been several joint- ventures with international automobile manufactures to boost this industry. This has helped several local manufactures to build expertise in producing different kinds of automobile parts and assemble low-cost vehicles.