Vietnamese Prime Minister Pham Minh Chinh on Thursday called on Czech auto manufacturer Skoda Auto to expand its investment in Vietnam by helping develop a complete automotive industry ecosystem, including local production, supply chains, and advanced technologies.

During a meeting in Hanoi with Skoda chairman Klaus Zellmer, the prime minister encouraged the company to go beyond passenger car production and explore opportunities to manufacture engines, components, and other types of vehicles.

He also recommended Skoda consider supplying local automakers such as Truong Hai and VinFast.

Chinh said the Vietnamese government is prioritizing the development of its auto sector to support the country’s transition to green transportation and digital manufacturing.

He emphasized Vietnam’s efforts to increase the proportion of locally produced parts and its commitment to supporting sustainable, high-tech industries, especially electric vehicles.

“The government will continue to create a fair, transparent, and efficient investment environment,” he said, adding that Vietnam values businesses' feedback and aims to improve cooperation based on mutual understanding.

The prime minister also suggested that Skoda diversify its product line by including railcars, commercial vehicles, and industrial machinery.

He encouraged the firm to form partnerships that would allow Vietnamese companies to integrate more deeply into Skoda and parent company Volkswagen’s regional and global supply chains.

Chinh further proposed that Skoda transfer advanced production technologies, train skilled workers in mechanical engineering and metallurgy, and expand into sectors in line with Vietnam’s development priorities.

The meeting came one day after the official inauguration of the Thanh Cong Viet Hung auto plant in Quang Ninh Province, which assembles Skoda cars in partnership with Vietnam’s Thanh Cong Group. Work on the plant began in early 2023.

Chinh welcomed the launch, describing it as a tangible step in the deepening of Vietnam-Czechia relations, which were elevated to a strategic partnership last year.

For his part, Zellmer said Skoda aims to scale up its presence in Vietnam through increased investment in production and supply chain development, including battery manufacturing and related equipment.

He expressed hope that Vietnam would continue improving infrastructure such as seaports, logistics systems, and workforce development to support the growth of the automotive sector.

Zellmer also noted that Skoda, the largest automaker in Czechia and a subsidiary of Germany’s Volkswagen Group since 1991, has operations in more than 100 countries and sells over one million vehicles annually.

The company plays a key role in Volkswagen’s electric vehicle and digital transformation strategies, particularly in European and Indian markets.

In 2022, Skoda signed a cooperation agreement with Thanh Cong Group to distribute its vehicles in Vietnam. That partnership aims to increase the localization rate, introduce modern technologies, and promote clean energy.

Skoda officially launched its vehicles in Vietnam in September 2023.

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