National Cars and Product Champions: Ways Forward for Vietnam’s Automotive Industry?

Abstract

This chapter asks what industrial policy lessons can be learned by Vietnam from the experiences of the Southeast Asian auto producers—and what pitfalls to avoid—and then looks at the experience of South Korea, which, we show, yields useful pointers. We examine the prospects of Vietnam’s new, domestic ‘flagship’ car company, VinFast, and ask how ‘product champion’ policies—using incentives to both consumers and producers to promote particular types of vehicle—as pioneered in Thailand with its one-tonne pick-up truck, could be applied in other countries. We also consider the development of automotive industrial policies in the context of rapid changes in the industry, particularly the moves towards electric vehicles.