Prime Minister Pham Minh Chinh Advocates for Skoda Auto’s Role in…

Vietnam’s Prime Minister Pham Minh Chinh welcomed Skoda Auto’s involvement in the automotive sector, advocating for local production and technological innovation. During a meeting with Skoda CEO Klaus Zellmer, initiatives to diversify vehicle offerings and boost local integration within supply chains were discussed, as well as infrastructural improvements to support industry growth.

On March 27, Prime Minister Pham Minh Chinh of Vietnam expressed a desire for Skoda Auto, the Czech automobile manufacturer, to contribute to the development of Vietnam’s automotive industry ecosystem. During a meeting with Skoda Auto’s Chairman and CEO, Klaus Zellmer, the Prime Minister encouraged the company to produce not only passenger vehicles but also various types of vehicles, engines, and components, viewing Vietnam as a strategic base for Southeast Asian expansion.

The Prime Minister referenced their previous discussions in Prague and celebrated the inauguration of the Thanh Cong Viet Hung auto plant, deeming it a significant milestone in Vietnam-Czech Republic relations, particularly following their agreement to elevate their partnership to a Strategic Partnership.

PM Chinh emphasized Vietnam’s objectives of increasing local production rates and technological content, alongside promoting a green transition and digital transformation, particularly within the automotive sector, which he believes is essential for sustainable transport and electric vehicle adoption. He reaffirmed the Vietnamese Government’s commitment to fostering a conducive investment climate by actively engaging with businesses and enhancing cooperation.

Moreover, the Prime Minister urged Skoda Auto to diversify its offerings to include railcars and commercial vehicles and to explore partnerships that would aid Vietnamese firms in integrating with Skoda and Volkswagen’s supply chains in Southeast Asia. He also highlighted the need for adapting vehicle designs to meet local market demands.

Zellmer provided insight on Skoda Auto’s prominent standing as the largest automaker in the Czech Republic with over 1 million vehicles sold annually globally. He noted the company’s strategic role within the Volkswagen Group, especially concerning electric vehicle development and digital transformation efforts.

In line with a 2022 cooperation agreement with the Thanh Cong Group, Zellmer affirmed Skoda Auto’s commitment to increasing the localization rate and integrating modern technologies into the local automotive industry. He disclosed plans for further investments in Vietnam, particularly targeting battery production.

Agreeing with the Prime Minister’s vision, Zellmer declared that Skoda Auto views its venture in Vietnam as just the initial phase and expressed a desire for Vietnam to enhance its infrastructure to support long-term growth in the automotive sector.

In conclusion, Prime Minister Pham Minh Chinh’s discussions with Skoda Auto underscore the Vietnamese Government’s commitment to advancing its automotive industry. The cooperation between Vietnam and Skoda is expected to enhance local production, technological adoption, and diversification of the automotive product range. Furthermore, both parties agreed on the importance of infrastructure development for the sustainable growth of the automotive sector in Vietnam.

Original Source: en.vietnamplus.vn