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Czech auto giant Skoda urged to build auto industry ecosystem in Viet Nam

VGP - Prime Minister Pham Minh Chinh suggested Czech auto giant Skoda participate in developing an automotive industry ecosystem in Viet Nam.

Posts Kim Anh

March 28, 2025 7:00 AM GMT+7
Czech auto giant Skoda urged to build auto industry ecosystem in Viet Nam- Ảnh 1.

Prime Minister Pham Minh Chinh (R) shakes hands with Chairman and CEO Klaus Zellmer, Ha Noi, March 27, 2025 - Photo: VGP/Nhat Bac

The Government chief made the suggestion on March 27 during a reception for Skoda Auto Chairman and CEO Klaus Zellmer.

Pham said Viet Nam is focusing on developing auto industry to promote transition to sustainable transport, including electric vehicles while briefing about Viet Nam's major development orientations.

He promised that the Vietnamese Government stands side by side with investors to increase mutual understanding and ensure effective investment cooperation in Viet Nam.

The Prime Minister called on Skoda Auto to diversify its products and increase localization rate  in order to enhance competitiveness in the Southeast Asian country.

He also asked 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 Viet Nam has needs and Skoda Auto has expertise in the spirit of harmonizing benefits and sharing risks.

Zellmer said Skoda Auto is the largest automaker in the Czech Republicgained, with annual sales of 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 digitalization strategy, with a considerable footprint in European and Indian markets.

The CEO said that Skoda Auto's business success in Viet Nam is just a starting point, and he looked forward to filling in the missing pieces to complete Viet Nam's automotive industry ecosystem.

In 2022, Skoda Auto and Viet Nam's private company, Thanh Cong Group signed a cooperative agreement aimed at increasing the localization rate, adopting modern technologies, and promoting clean energy. Following the launch of its first imported models in Viet Nam in September 2023, Skoda Auto plans to expand its investment and business operations, particularly in battery production and key input components./.