Chairman of the local private automaker Vinaxuki Bui Ngoc Huyenproposed the Government put forward preferential policies on land,technological transfer, and long-term, low-interest-rate loans tostimulate automobile spare part manufacturing businesses.

In an interview granted to the Vietnam News Agency, Huyen said theindustry has undergone 20 years of formation and development with manybusinesses encouraged to join the auto support industry.

He said the Government has adopted a number of policies to develop thesector, such as supporting the mechanics industry with zero-percentinterest rates on 10-year loans, adding that however, few businesses canaccess this source of capital.

He said support policies do not suit the real situation due to a lack of accurate market forecast.

The businessman said his company has built auto-manufacturingfactories creating fuel-saving and low-cost cars for farmers and themiddle-class that meet international export standards, but high tax haspushed prices up.

Huyen suggested the Governmentselect and cooperate with foreign partners in producing engines andcomplicated spare parts via policies prioritising car accessoryproduction over assembly.

Vietnam aims to produce227,000 automobiles and become a major supplier of spare parts andhigh-value items in the world automobile production chain by 2020 as apart of the master plan for Vietnam’s automobile industry developmentrecently approved by the Prime Minister.-VNA