Impacts of COVID-19 on the Automotive Industry in Vietnam

Abstract

This study aimed to determine the impact of COVID-19 on the automotive industry in Vietnam. Another objective was to promote some potential recovery scenarios after economic shocks. Finally, the study examined a solution to overcome COVID-19 and lead Vietnam's automotive industry towards the "new normal." Qualitative research was used in conjunction with questionnaires and document reviews to achieve the above objectives. In the qualitative stage, indepth interviews were conducted with 32 experts in the industrial sector to explore the impact of COVID-19 on the automotive industry in Vietnam. Structural Equation Modelling (SEM) with Partial Least Squares (PLS) and Statistical Package for the Social Sciences (SPSS) were used to explore and measure the impact of factors affecting the automotive industry with 620 respondents for a study regarding the industry that prevents the author from having more actionable recommendations. The findings revealed that five identified factors, which are business effects, supply chain and manufacturing, response and imperatives, leadership, government, and regulatory intervention, could be components of the impact of COVID-19 on the automotive industry in Vietnam. Two recommendations that were pointed out include conducting the 4RE Solution and applying the integration Block-chain leadership model to help Vietnam overcome the crisis and take this pandemic as a chance to restructure for a renewed automotive industry.