Japan car makers may lose the edge as trade rules change in Southeast Asia

Article Abstract:

Japanese automobile manufacturers have long dominated the Southeast Asian market by establishing manufacturing plants in local markets in compliance with existing local-content regulations. However, the impending elimination of local-content requirements in the region could adversely affect Japan's market share. Many Japanese manufacturers expressed concern over the possible entry of numerous small and inefficient plants as a result of the termination of the local-content rules. These small plants may significantly push automobile prices in the region.

Japan, Southeast Asia, Domestic content (Commercial policy), Domestic content (Trade policy)

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Shifting gears in China

Article Abstract:

China's growing economy is lifting per capita income, allowing private individuals to acquire personal cars. The growing figure in individual car purchases is providing positive forecasts in the growth of the automobile industry. Foreign investors, however, are cautious about investing heavily because of some government policies. The Chinese government restricts issuance of vehicle production licences to foreign joint ventures and car model approval goes through too much red tape.

China, Foreign investments, Transportation

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Vietnam's decision to open tiny auto market to all comers could result in overcrowding

Article Abstract:

Vietnam has opened its automobile market to foreign investors, particularly to some of the largest manufacturers in the world. In all, 11 manufacturers such as Toyota Motor Corp., Ford and Mercedes-Benz AG have pledged to infuse about $650 million in investments for the construction of manufacturing facilities in the country. Some observers believe that the Vietnamese automobile market could become the most saturated market because of the limited demand.

Vietnam

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