Vietnam’s Prime Minister Pham Minh Chinh has urged Skoda Auto to expand its investment, strengthen business operations, and collaborate with Vietnamese enterprises to develop the country’s automotive industry ecosystem.

He made the remarks today [March 27] at a meeting with Klaus Zellmer, Chairman and CEO of Skoda Auto, as part of his visit to Vietnam.

Prime Minister Pham Minh Chinh (right) and Klaus Zellmer, Chairman and CEO of Skoda Auto at the meeting. Photo: Nhan dan Newspaper

At the meeting, the prime minister highlighted Vietnam’s potential as a rapidly growing automotive market with increasing demand for sustainable and digitalized transportation solutions. He said that while Vietnam offers immense opportunities, competition is fierce, pushing manufacturers to accelerate green and digital transformation.

Chinh said, in line with Vietnam’s long-term development strategy, the Vietnamese Government is prioritizing higher localization rates, technological innovation, and green mobility solutions, including the promotion of electric vehicle (EV) production and boosting the participation of local enterprises in global supply chains.

He urged Skoda Auto to localize more components, diversify its product range, and explore beyond automobiles, including rail and aviation equipment to further strengthen Vietnam’s automotive industry.

"Higher localization would lower costs and increase Skoda Auto’s competitiveness in Vietnam and regional markets," said Chinh.

Skoda Auto Chairman and CEO Klaus Zellmer reaffirmed the company’s commitment to expanding its footprint in Vietnam. He expressed interest in developing an automotive ecosystem that includes battery production and supply chain integration.

He also emphasized the need for improved infrastructure, logistics, and workforce quality to support industry growth.

Skoda Auto, the Czech Republic’s largest automaker, became part of Volkswagen Group in 1991 following privatization. In 2022, the company partnered with Thanh Cong Group (TC Group) to establish an automotive manufacturing and assembly facility in Vietnam. The newly inaugurated Thanh Cong Viet Hung plant in the northern province of Quang Ninh is now operational, equipped with advanced technology for Skoda Auto vehicle production, reinforcing Vietnam’s global automotive ambitions.