Vĩnh Phúc: Honda and Toyota Dominate Automotive Industry, Drive Economic Growth
Vĩnh Phúc province in northern Vietnam is home to two major automotive manufacturers: Honda Việt Nam and Toyota Việt Nam. These companies are the primary contributors to the province’s budget revenues.
Honda and Toyota account for approximately 30% and 25% of Vĩnh Phúc’s budget revenues, respectively. In 2022, Honda Việt Nam contributed 11.680 billion đồng to the budget, while Toyota Việt Nam contributed 10.803 billion đồng.
During the first seven months of 2023, Honda Việt Nam contributed an estimated 5.209 billion đồng to the budget, while Toyota Việt Nam contributed approximately 3.681 billion đồng.
Toyota Việt Nam’s factory is recognized for producing some of the highest quality vehicles in the Asia-Pacific region.
Toyota Việt Nam: A Leading Manufacturer with a Strong Local Presence
Established in 1995, Toyota Việt Nam is a joint venture between Toyota Motor Corporation (Japan), KUO Singapore Pte Ltd, and Vietnam Engine and Agricultural Machinery Corporation (VEAM). With a production capacity of 47,000 vehicles per year, Toyota Việt Nam is one of the top automakers in the country.
The company’s factory is recognized for its exceptional quality, implementing the Toyota Production System (TPS) and Kaizen (continuous improvement) principles. This commitment to excellence, coupled with the skilled workforce, has resulted in Toyota Việt Nam becoming one of the most advanced automotive manufacturers in the Asia-Pacific region.
As of April 2024, Toyota Việt Nam collaborates with 60 parts suppliers, including 13 domestic suppliers with over 1,000 locally sourced products. In 2023, Toyota Việt Nam supported an additional 13 component suppliers, bringing the total number to 17. This effort has increased the localization ratio of automotive production in Vietnam to 40%, with the Vios model achieving a localization rate of 43%.
Honda Việt Nam’s factory in Vĩnh Phúc has a production capacity of 23,000 vehicles per year.
Honda Việt Nam: A Pioneer in Automotive Localization
Honda Việt Nam was established in 1996 as a joint venture between Honda Motor Company (Japan), Asian Honda Motor (Thailand), and VEAM. The company received a license to manufacture and assemble automobiles in Vietnam in 2005.
Honda Việt Nam operates a factory in Phúc Thắng, Vĩnh Phúc, with an annual production capacity of 23,000 vehicles. The company collaborates with over 140 part suppliers, with 100% of plastic and rubber components, 90% of metal components, and 80% of electronic components sourced locally. Honda Việt Nam has achieved a localization rate of approximately 96% in motorcycle production and nearly 2% in automobile production.
Vĩnh Phúc: A Thriving Economy with Strong FDI Presence
Vĩnh Phúc is a key province in the northern economic region of Vietnam. Strategically located near Hanoi’s Noi Bai International Airport, it serves as a gateway to both the capital and surrounding provinces.
Covering an area of 1,236 square kilometers, Vĩnh Phúc has a population of 1,197,617 people (2022 census). It is administratively divided into two cities (Vĩnh Yên and Phúc Yên) and seven districts, with 136 communes, wards, and towns.
Vĩnh Phúc’s GRDP in 2023 reached approximately 158.01 trillion đồng.
Vĩnh Phúc has experienced significant economic growth, with annual growth rates sometimes exceeding 20%. From 1997 to 2021, the province’s economy expanded by an average of 13.42% per year. Labor productivity has also increased significantly, reaching 212 million đồng per worker per year in 2021, a 20.5-fold increase since 1997.
In 2023, Vĩnh Phúc’s Gross Regional Domestic Product (GRDP) reached an estimated 158.01 trillion đồng, a 3.23% increase compared to 2022. This translates to a per capita GRDP of 130.5 million đồng, an increase of 2.052% from the previous year.
As of 2023, Vĩnh Phúc has attracted 359 active foreign direct investment (FDI) projects with a total registered capital of over 6.1 billion USD from 20 countries and territories. These include investments from developed countries such as the United States and Japan, as well as from various European nations. Additionally, there are 99 domestic direct investment (DDI) projects with a total investment of nearly 17.425 trillion đồng.
