D13 discuss the toyota’s decisions of selecting vietnam as a production locationa13 research the toyota’s way of production

National Economics University School of Advanced Education Programs  REPORT International business D13: Discuss the Toyota’s decisions of selecting Vietnam as a production location A13: Research the Toyota’s way of production Team 1: Name Do Minh Anh Phung Huong Giang Vu Thao Nguyen Nguyen Thi Phuong Thao Tran Thi Thanh Tu Teacher: Dao Huong Giang Hanoi, 10/2023 Student ID 11210336 11219688 11214481 11215428 11219821 Contents I Toyota introduction 1 Overview History of Toyota II Manufacturing locations in the world .3 III Overview about Toyota production system IV Goals of the Toyota Production System V Principles of Toyota production system Just In Time (JIT) Jidoka VI Conditions to apply this model Management commitment Stable demand .8 Standardized processes Supplier involvement VII The way that materials flow in the system 10 Main stages to produce a car 10 1.1 Stamping .10 1.2 Welding .10 1.3 Painting .11 1.4 Assembly 11 1.5 Inspection and shipping 11 Materials flow through Toyota’s global production system 11 2.1 Overview 11 2.2 The way to manage materials flow 11 VIII Can Vietnamese company apply this model? Why? 12 IX Toyota Vietnam 14 General information 14 Export 14 Localization .15 Sales 15 Dealer Network 15 X Manufacturing factories in Vietnam 15 XI Reason to choose Vinh Phuc 16 XII Toyota’s Vietnam achivement 18 References I Toyota introduction Overview Toyota Motor Corporation is a Japanese multinational automotive manufacturer headquartered in Toyota City, Aichi, Japan Founded in 1937 in Japan, the Toyota Motor Corporation became one of the automotive market leaders in vehicle production and sales According to the Statista, as of 2022, it was the leading motor vehicle manufacturer worldwide based on global sales, overtaking the Volkswagen Group in 2020 The Toyota brand is the company's best-selling subsegment, with around 8.9 million vehicles sold in 2022 There are over 30 Toyota models available in the market, catering to various driving needs and preferences Toyota’s diverse lineup is really similar in our lives, such as sedans, SUVs, trucks, hybrids, crossovers, and minivans, offering something for every driver with familiar brand name with us including Toyota, Lexus, Daihatsu and Hino At just over 2.7 million units, electrified vehicles are gaining importance for Toyota The company made strides in the electric vehicle market by being the first and largest automobile company to offer a hybrid car in its line-up The Toyota Prius was such a success that the company began to provide a hybrid option for some of its other models, such as the Camry and the Corolla North America was the primary international market for Toyota vehicle sales, with sales volumes just above the domestic market The United States market was particularly lucrative for the Toyota Motor Corporation The Toyota RAV4 and Toyota Camry were the best-selling sport utility vehicle and cars in the United States in 2022 Lexus —the corporation's luxury vehicle subsidiary—had the highest U.S consumer satisfaction index score across automobile and light vehicle brands in 2022 This North American success was reflected in the company's global performance Toyota’s mission statement is “Producing Happiness for All.” The company states that it aims to achieve the goals of this corporate mission by “addressing the challenges of mobility as a mobility company.” Toyota’s vision statement is “Creating Mobility for All.” To achieve the aims of this corporate vision, the company states that it “strives to raise the quality and availability of mobility.” About the Toyota logo, the Toyota emblem is a combination from the three overlapping Ellipses These Ellipses symbolize the unification of Toyota customers’ hearts and the hearts of Toyota products The background space symbolizes infinity in Toyota’s technological progress and opportunities History of Toyota There are four main phases in the development process of Toyota a) The first phase is founding and entry into the automobile industry: 1933: Automobile department established within textile loom maker Toyoda Automatic Loom Works now Toyota Industries Corp founded by inventor Sakichi Toyoda 1936: Production starts of its first car, the Model AA b) The second phase is establishing the Toyota identity: 1955: Toyota Crown launched 1957: Crown becomes first passenger car made in Japan to be exported to the United States 1962: First overseas vehicle plant, in Brazil 1964: First Asian vehicle plant outside Japan, in Thailand 1965: Sports 800 launched 1967: 2000GT launched 1970: Celica launched 1972 - Cumulative production in Japan reaches 10 million vehiclesc c) The third phase is leaping forward as a global corporation: 1981: Soarer launched 1984: Toyota’s first U.S car assembly plant, a joint venture with General Motors Corp, opens in California 1989 - Toyota launches luxury Lexus brand in North America 1992: First European car plant begins production in Britain 1997: Prius, the first mass-produced hybrid car, launched 1998: Toyota takes majority stake in minivehicle maker Daihatsu Motor Co 1999: 100 millionth Toyota vehicle produced in Japan 2001: Toyota takes majority stake in truck maker Hino Motors Ltd 2003: Toyota makes 6.78 million vehicles and overtakes Ford Motor Co in annual sales to become world No.2 behind General Motors 2005: Toyota takes minority stake in Fuji Heavy Industries, maker of Subaru cars, for cooperation in vehicle technology development and use of its U.S factory 2006: Toyota takes minority stake in truck maker Isuzu Motors Ltd to beef up diesel engine technology d) The fourth phase is towards the mobility society of the future 2014: Mirai launched 2020: GR Yaris launched 2022: The 16th-generation Crown launched II Manufacturing locations in the world Today, Toyota operates 71 manufacturing companies worldwide Toyota and its affiliated companies produce automobiles and related components through more than 50 overseas manufacturing organizations in 27 countries and regions aside from Japan Facilities are located principally in Japan, the United States, Canada, the United Kingdom, France, Turkey, Czech Republic, Russia, Poland, Thailand, China, Taiwan, India, Indonesia, South Africa, Argentina and Brazil Asia: Japan(16), Indonesia (3), Malaysia, Philippines(2), Thailand(3), VietNam, Myanmar, Pakistan, China, Europe: France, Belgium, Czech Republic, Poland, Russian Federation, Turkey, UK North America: Canada(2), USA(10), Mexico (2) South America: Argentina, Brazil, Venezuela Africa: South Africa, Kenya, Egypt, Ghana In 2022, the largest number of manufacturing factories are located in Japan, with 16 plants In oversea, Toyota has 10 plants for 36 years manufacturing in USA, which become the highest-production facility of any non-domestic automaker in the United States There are regional headquarters in worldwide, besides the TOYOTA Motor Corporation Toyota Motor North America, Inc (TMNA) – Operating subsidiary that oversees all operations of the Toyota Motor Corporation in Canada, Mexico, and the United States Began operations in 2014 and headquartered in Plano, Texas Toyota Motor Europe (TME) is headquartered in Brussels, Belgium, and oversees all operations of the Toyota Motor Corporation in Europe and western Asia Toyota Daihatsu Engineering & Manufacturing Co., Ltd (TDEM) is the regional headquarter of the Asia Pacific region Toyota Motor (China) Investment Co., Ltd (TMCI) in the Chinese city of Tianjin to provide marketing support for Toyota vehicles in China Toyota Motor Asia Pacific Engineering & Manufacturing Co., Ltd (TMAPEM) In promoting a sustainable growth strategy, establishing a system capable of providing optimal supply of products in the global market is integral to Toyota’s strategy In line with its basic policy of manufacturing in countries or regions where there is demand and where Toyota is truly competitive, Toyota will make efficient use of and maximize capacity utilization at its existing plants to respond to the expanding market and will continue to focus on making efficient capital investments as necessary Furthermore, Toyota will continue to place top priority on safety and quality in strengthening true competitiveness with the aim of achieving sustainable growth The following table shows Toyota’s worldwide vehicle unit production by geographic market for the periods shown These production figures not include vehicles produced by Toyota’s unconsolidated affiliated companies The sales unit information elsewhere in this annual report includes sales of vehicle units produced by these affiliated companies Vehicle units produced by Daihatsu and Hino are included in the vehicle unit production figures set forth below Document continues below Discover more from: International Business I Đại học Kinh tế Quốc dân 39 documents Go to course C3-TT8-N8 - Nạn tham nhũng Singapore 18 International Business I 100% (4) Chapter Closing case International Business I None Detroit Bikes - IB assignment International Business I None Chapter Closing case International Business I None Int Biz Course Syllabus Fall 2022 International Business I None Writing - Vietnam, with less than one-tenth China’s population, is already running into International Business I None Toyota closely monitors its actual units of sale, market share and units of production data and uses this information to allocate resources to existing manufacturing facilities and to plan for future expansions III Overview about Toyota production system The Toyota Production System (TPS) is an integrated socio-technical system, developed by Toyota, that comprises its management philosophy and practices The TPS is a management system that organizes manufacturing and logistics for the automobile manufacturer, including interaction with suppliers and customers The system is a major precursor of the more generic "lean manufacturing" Taiichi Ohno and Eiji Toyoda, Japanese industrial engineers, developed the system between 1948 and 1975 Originally called "just-in-time production", it builds on the approach created by the founder of Toyota, Sakichi Toyoda, his son Kiichiro Toyoda, and the engineer Taiichi Ohno The principles underlying the TPS are embodied in The Toyota Way IV Goals of the Toyota Production System The goal of the Toyota Production System is to provide products at world class quality levels to meet the expectations of customers, and to be a model of corporate responsibility within industry and the surrounding community The Toyota Production System historically has had four basic aims that are consistent with these values and objectives: The four goals are as follows: Provide world class quality and service to the customer Develop each employee’s potential, based on mutual respect, trust and cooperation Reduce cost through the elimination of waste and maximize profit Develop flexible production standards based on market demand The graphic presented below models the Toyota Production System The purpose of this document is to describe the major subsystems that comprise TPS, as well as explain the key concepts and tools associated with the system V Principles of Toyota production system The production system philosophy of Toyota embodies a manufacturing culture of continuous improvement based on setting standards aimed at eliminating waste through participation of all employees The goal of the system is to reduce the timeline from the time an order is received until the time it is delivered to the actual customer Ideally the system strives to produce the highest possible quality, at the lowest possible cost, with the shortest lead-time possible This production control system was established based on many years of continuous improvements, with the objective of making the vehicles ordered by customers in the quickest and most efficient way, in order to deliver the vehicles as swiftly as possible The Toyota Production System (TPS) was established based on two concepts: "jidoka" (which can be loosely translated as "automation with a human touch"), as when a problem occurs, the equipment stops immediately, preventing defective products from being produced; and the "Just-in-Time" concept, in which each process produces only what is needed for the next process in a continuous flow Based on the basic philosophies of jidoka and Just-in-Time, TPS can efficiently and quickly produce vehicles of sound quality, one at a time, that fully satisfy customer requirements TPS and its approach to cost reduction are the wellsprings of competitive strength and unique advantages for Toyota Thoroughly honing these strengths is essential for Toyota's future survival There are two primary pillars of the system: Just In Time (JIT) The first and most famous pillar of the system is Just In Time (JIT) The JIT concept aims to produce and deliver the right parts, in the right amount, at the right time using the minimum necessary resources Making only "what is needed, when it is needed, and in the amount needed" Producing quality products efficiently through the complete elimination of waste, inconsistencies, and unreasonable requirements on the production line In order to fulfill an order from a customer as quickly as possible, the vehicle is efficiently built within the shortest possible period of time by adhering to the following: When a vehicle order is received, production instructions must be issued to the beginning of the vehicle production line as soon as possible The assembly line must be stocked with the required number of all necessary parts so that any kind of ordered vehicle can be assembled The assembly line must replace the parts used by retrieving the same number of parts from the parts-producing process (the preceding process) The preceding process must be stocked with small numbers of all types of parts and produce only the numbers of parts that were retrieved by an operator from the next process Jidoka Jidoka (Build in quality) is the second pillar of the system There are two parts of Jidoka: Building in quality at the process and Enabling separation of man from machine in work environments TPS aspires for processes that are capable of making intelligent decisions and shutting down automatically at the first sign of an abnormal condition such as a defect, or other problem For Toyota, jidoka means that a machine must come to a safe stop whenever an abnormality occurs Achieving jidoka, therefore, requires building and improving systems by hand until they are reliable and safe First, human engineers meticulously build each new line component by hand to exacting standards, then, through incremental kaizen (continuous improvement), steadily simplify its operations Eventually, the value added by the line's human operators disappears, meaning any operator can use the line to produce the same result Only then is the jidoka mechanism incorporated into actual production lines Through the repetition of this process, machinery becomes simpler and less expensive, while maintenance becomes less time consuming and less costly, enabling the creation of simple, slim, flexible lines that are adaptable to fluctuations in production volume The work done by hand in this process is the bedrock of engineering skill Machines and robots not think for themselves or evolve on their own Rather, they evolve as we transfer our skills and craftsmanship to them In other words, craftsmanship is achieved by learning the basic principles of manufacturing through manual work, then applying them on the factory floor to steadily make improvements This cycle of improvement in both human skills and technologies is the essence of Toyota's jidoka Advancing jidoka in this way helps to reinforce both Toyota manufacturing competitiveness and human resource development The goal is not to run continuously but in other words to stop running automatically when trouble arises This automatic stop function helps stop defects from escaping downstream, prevents injury, limits machine damage, and enables a better look at the current condition whenever there is a problem Much like the logic of JIT this concept of Jidoka is counterintuitive In other words it is better to stop a machine at the first sign of trouble than to keep on producing the problem which only generates more waste The second component of Jidoka is separation of man from machine When machines possess the ability to stop in the event of a problem then there is no need for humans to stand and watch the machines Jidoka frees people being tied to machines and monitoring them and puts people to use in a more value added fashion This ability to separate man from machine reflects Toyota’s respect for the employee and is an important enabler for Standardized Work to flourish The foundation of TPS is Level Production By smoothing or leveling customer requirements over time, we can better utilize our resources and ensure continuous production Averaging volumes and model mix requires smaller lots and in the best cases “batch of one” capability from raw materials to finished goods The bedrock of this system is Equipment Reliability Proper maintenance of equipment will ensure that it is available when Toyota need it In contrast to the conventional production system, in which systematic batch production with large lots is believed to have a maximum effect on cost reduction, the Toyota manufacturing philosophy is to make the smallest lot possible, and so by setting up dies and machines in the shortest time possible VI Conditions to apply this model Management commitment Taiichi Ohno, the creator of the Toyota Production System (TPS) stressed (in Toyota Production System: Beyond Large-Scale Production) that "The Toyota Production System is a system for eliminating waste - a never-ending process of improvement.” And “the key to the Toyota Production System is to continuously improve the way we things” (Workplace Management) Since the focus on continuous improvement is one of the core principles of TPS, applying this model requires a strong commitment from top management because it is a major undertaking that requires significant changes to the way a company operates Management must be willing to invest in training employees, providing the necessary resources, and creating a culture of continuous improvement This means that management must be willing to make changes to their own behavior and to support employees who are trying to make improvements Stable demand TPS is most effective when demand is stable because this allows companies to plan production and avoid waste The study conducted by University of Michigan found that the benefits of TPS were greatest for companies that had stable demand because stable demand allows companies to plan production more effectively and avoid waste For example, if a company knows that it will need to produce 100 units of a product every day, it can order the necessary materials and schedule workers in advance This helps to reduce waste of materials and labor The study's findings suggest that companies that are considering implementing TPS should carefully consider the nature of their demand If demand is likely to be unstable, companies may need to make changes to their production system in order to accommodate the variability in demand Standardized processes TPS relies on standardized processes because this helps to ensure that products are produced consistently and that problems are identified and corrected quickly The Toyota Production System is based on the principle of standardization This means that we have a standard way of doing everything This helps to ensure that products are produced consistently and that problems are identified and corrected quickly “Toyota Production System: Beyond Large-Scale Production, Taiichi Ohno” Standardized processes are essential for the successful application of the Toyota Production System (TPS) for a number of reasons Firstly, they help to reduce variation as everyone is doing things the same way, it is easier to identify and correct problems This is because there is less variation in the way that tasks are performed As a result, it is easier to see when something is wrong and to take steps to correct it (Ohno, 1988) Secondly, standardized processes help to ensure consistency When everyone is doing things the same way, it is less likely that there will be variation in the quality of products This is important because it helps to meet customer expectations and to reduce the risk of defects (University of Michigan, 2005) Thirdly, standardized processes help to identify and correct problems quickly This is because it is easier to see when something is wrong when everyone is doing things the same way Additionally, standardized processes often include built-in checks and balances that help to identify problems before they cause defects (National Institute of Standards and Technology, 2010) Supplier involvement TPS requires close cooperation with suppliers because suppliers play a critical role in the production process The Machine That Changed the World", James P Womack, Daniel T Jones, and Daniel Roos wrote: "Just-in-time is a production system that minimizes the amount of inventory a company keeps on hand This is done by receiving materials and parts from suppliers only when they are needed for production JIT requires close cooperation between suppliers and customers” Suppliers must be able to deliver high-quality materials and parts on time Additionally, suppliers must be willing to work with companies to improve the quality of their products and to reduce waste Toyota's JIT inventory system is a successful method that the company has been using for decades However, the system is not without its risks In 1997, a fire at a supplier caused Toyota to halt production for several days This event highlighted the importance of having backup suppliers in place VII The way that materials flow in the system Main stages to produce a car There are five main stages in the manufacturing process of a Toyota car: 10 1.1 Stamping 1The first stage is stamping, where large rolls of steel are fed into a machine that cuts and shapes them into the different body panels of the car This process is very precise, and the panels must be made within a very small tolerance 1.2 Welding Once the body panels have been stamped, they are welded together to form the body of the car This is a delicate process, as the welds must be strong enough to withstand the stresses and strains of driving, but also smooth enough to give the car a good finish 1.3 Painting The next stage is painting, where the body of the car is given several coats of paint to protect it from the elements and give it the desired color and finish The paint is applied using a robotic system that ensures that every car is painted evenly and to the same high standard 1.4 Assembly Once the body of the car is painted, it is assembled on the production line This is where all of the other components of the car are added, including the engine, transmission, suspension, interior trim, and electrical system The assembly line is very efficient, and a new Toyota car is completed every few minutes 1.5 Inspection and shipping The final stage in the manufacturing process is inspection and shipping Once the car has been assembled, it is thoroughly inspected to ensure that it meets all of Toyota's quality standards Once the car has passed inspection, it is shipped to the dealership where it can be purchased by a customer Materials flow through Toyota’s global production system 2.1 Overview Raw materials are shipped from suppliers to Toyota's plants Suppliers are typically located close to Toyota's plants to minimize transportation time and costs Raw materials are stored in a warehouse at the plant Toyota uses a JIT inventory system, so raw materials are typically only stored in the warehouse for a short period of time Raw materials are delivered to the production line as needed Toyota uses a kanban system to manage the flow of materials to the production line 2.2 The way to manage materials flow 11 Toyota's global production system is designed to efficiently move materials through the entire production process, from raw materials to finished products The goal is to minimize waste, inventory, and lead times Toyota also uses a Kanban system to manage its materials flow Kanban is a Japanese word that means "card" or "sign." Kanban cards are used to communicate between different stages of the production process about what materials are needed and when When a factory needs a part, it sends a kanban card to the factory that produced the part The parts factory will only produce the number of parts necessary to meet the needs of the using factory This helps to ensure that materials are delivered to the right place at the right time  How to use Kanban inToyota's material flow system works in practice? - A kanban card is attached to a container of parts that are used to assemble the dashboard of a vehicle - As workers assemble the dashboards, they remove the parts from the container - When the container is empty, the kanban card is sent back to the previous process to signal that more parts are needed - The previous process then produces more parts and delivers them to the assembly line just-in-time - Raw materials are assembled into finished products on the production line Toyota uses a variety of lean manufacturing techniques to minimize waste and improve efficiency on the production line - Finished products are shipped to customers  Toyota works closely with its logistics partners to ensure that finished products are delivered to customers on time and in good condition 12 - Toyota has a global network of over 500 suppliers - Toyota uses a variety of transportation methods to ship materials to its plants, including trucks, ships, and airplanes - Toyota has a team of dedicated logistics professionals who manage the flow of materials around the world - Toyota uses a variety of technologies to track and monitor the movement of materials, including GPS and RFID VIII Can Vietnamese company apply this model? Why? Basically, the Toyota Production System (TPS) is designed for lean production to achieve efficiency Therefore, TPS has a close connection with Lean Manufacturing, an internationally recognized lean production method Therefore, in this explanation, we will discuss whether Lean can be applied in Vietnamese businesses instead of focusing on TPS, which is a customized model for the Toyota brand In general, LEAN Manufacturing can be seen as one of the most efficient production management models in terms of cost efficiency The benefits that LEAN brings to businesses when applied to their production systems are immense and sustainable Currently, Vietnam has been able to implement LEAN in its production processes, with some businesses and factories successfully applying this model for several years, such as Toyota Vietnam However, only a few companies can successfully implement LEAN The majority of Vietnamese businesses still face limitations in their ability to apply LEAN, and the success rate remains low There are five main reasons limiting the application of this model First, the scale and infrastructure of businesses in Vietnam are currently weak According to the statistics of the General Statistics Office in 2019, over 97% of businesses in Vietnam are small and medium-sized enterprises Therefore, the resources in terms of finance, quality, and the necessary workforce are not sufficient to ensure the success of implementing LEAN Second, the technological level of businesses in Vietnam is outdated compared to other countries in the region, making it challenging to implement LEAN techniques effectively Third, the management and production operation capabilities of Vietnamese businesses, especially SMEs, are weak This leads to a low ability to control and manage LEAN changes (World Economic and Political Issues Magazine - Issue 12/2017) 13 Fourth, the quality of the Vietnamese workforce is low, with nearly 80% being unskilled labor without training This results in a lack of awareness about the implementation of LEAN, and training activities for innovation are not very effective Fifth, the production network and supply chain system are unstable and incomplete The level of connection and collaboration between Vietnamese businesses is currently low, with each business often prioritizing its own interests over those of its partners This leads to a lack of effective implementation of Just-In-Time, a core element of LEAN Currently, only Toyota Vietnam has achieved the highest level of success due to the support from its supplier and customer network In conclusion, Vietnamese businesses can apply LEAN in their production systems, although the success rate is not high, and there are many limitations However, to successfully apply LEAN to the production process, Vietnamese businesses need not only to understand and effectively apply the technical tools of LEAN but also to achieve results in productivity, quality, cost, and sustain them It is crucial to address weaknesses through long-term and suitable implementation strategies IX Toyota Vietnam General information - Company Name: TOYOTA MOTOR VIETNAM CO.,LTD - Leadership: + General Director: Mr Nakano Keita + Deputy General Director: Mr Pham Thanh Tung - Business Activities: Manufacturing and selling automobiles - Joint Venture Partners: Toyota Motor Corporation, Japan (70%), Vietnam Engine & Agriculture Machinery Corporation (VEAM) (20%), and KUO Singapore Pte Ltd (10%) - Establishment Date: September 5, 1995 - Registered Capital: $49 million USD - Workforce: 1,611 employees - Annual Production Capacity: 57,000 vehicles - Official Dealerships in 47 provinces and cities: 86 dealerships - Headquarters and Branches: + Headquarters in Phuc Thang Ward, Phuc Yen City, Vinh Phuc Province + branches in Hanoi and Binh Duong 14 + training center in Hoai Duc District, Hanoi Toyota Motor Vietnam (TMV) is an automobile Joint Venture founded in September 1995 The total initial investment capital was $89.6 million USD, with contributions from Toyota Motor Corporation (70%), Vietnam Engine & Agriculture Machinery Corporation - VEAM (20%), and KUO Singapore Pte Ltd (10%) As one of the first auto joint ventures in Vietnam, TMV continuously strives to maintain sustainable development and progress together with Vietnam TMV has been increasingly providing high-quality products and excellent customer services to ensure the highest customer satisfaction and contributes to the development of the Vietnamese automobile industry As the company develops, TMV also actively contributes to various areas in Vietnamese society through concrete and sustainable activities Export Since July 2004, Toyota Vietnam has established the first automotive parts export center in Vietnam, opening a new era of Vietnam's participation in Toyota's global production system As of the end of 2022, TMV's total export turnover in Vietnam has reached $790 million USD, with the export turnover of parts in 2022 reaching $68.6 million USD Currently, TMV's export market is expanding, reaching 13 different countries and territories (including Taiwan, the Philippines, Indonesia, Malaysia, Thailand, India, Pakistan, Kazakhstan, Egypt, South Africa, Venezuela, Brazil, and Argentina) Localization In its long-term development orientation, TMV continually enhances domestic production capacity and increases the localization rate by encouraging investment and supporting the improvement of the capabilities of local suppliers To date, TMV's total localized products have reached 1,000 different items, with components and accessories coming from 58 suppliers, including 12 Vietnamese suppliers Sales With nearly 30 years in Vietnam, Toyota consistently maintains its leading position in terms of sales in the Vietnamese automotive market Toyota's models are trusted and chosen by Vietnamese consumers, and this trust is continually reinforced through experiential activities and test drives organized by Toyota and its dealerships nationwide Dealer Network To bring Toyota-branded products and services closer to customers, Toyota continuously expands its dealership network, authorized dealership branches, and service stations across the country, including: - 86 Toyota dealerships in 47 provinces and cities 15 - Lexus dealerships in Hanoi and Ho Chi Minh City X Manufacturing factories in Vietnam Toyota's manufacturing factory in Vinh Phuc, is a state-of-the-art facility that uses the latest technologies and processes The factory produces a variety of Toyota vehicles, including: - Toyota Vios - Toyota Corolla Altis - Toyota Innova - Toyota Fortuner - Toyota Veloz Cross - Engines and other auto parts Toyota Vietnam is the first automobile manufacturing company in Vietnam to complete the car manufacturing and assembly process with all processes: Stamping Welding - Painting - Assembly - Inspection The factory uses a variety of robots and automated machines to produce vehicles The robots are used to perform tasks such as welding, painting, and assembling the vehicles The automated machines are used to produce parts and components for the vehicles  Localization rate: In terms of quantity, the amount of localized components on most of Toyota's car models is about 40% Specifically, localized components are mainly located in groups such as glass, tires or rims, door panels, body panels, and seats Regarding value, the company did not announce it However, the most valuable and highly technical components on the vehicle, such as important details that make up the vehicle's engine, transmission system or electronics, are all imported Toyota Vietnam is trying to increase the localization rate of its vehicles: Working with local suppliers to improve their capabilities and to develop new products: Screening manufacturing businesses and making a list of potential suppliers of auto parts and components to connect with auto manufacturers and assemblers in Vietnam; Organize field visits to Toyota Vietnam factories and Toyota domestic suppliers; Support participation in training under a number of Vietnamese supplier development programs Working with the Vietnamese government to create a favorable environment for the development of the automotive industry  Environmental sustainability 16 Besides, the factory is committed to environmental sustainability and has a number of initiatives in place to reduce its environmental impact For example, the factory uses solar energy to power its operations and has a rainwater harvesting system The factory also recycles over 90% of its waste  Economy Toyota's factory in Vinh Phuc is a major contributor to the Vietnamese economy The factory exports vehicles to over 20 countries around the world and contributes significantly to Vietnam's GDP The factory is also a major source of employment for the people of Vinh Phuc province XI Reason to choose Vinh Phuc After more than 20 years of re-establishing the province, Japan is one of the first countries to invest in Vinh Phuc, contributing to laying the foundation for the locality to become a production center in the fields of automobiles, motorbikes, mechanics, manufacturing of the whole country with investment from some of the world's leading corporations such as Honda, Sumitomo and Toyota  Favorable geographical location: Vinh Phuc is located in the northern region of Vietnam, about 70 kilometers from Hanoi, the capital city This makes it wellconnected to major transportation networks, including roads, railways, and airports (Sumimoto shared)  Presence of other Japanese companies: Vinh Phuc is home to a number of other Japanese companies, such as Honda and Sumitomo This creates a supportive environment for Japanese businesses, and it also gives Toyota access to a network of suppliers and customers  Abundant labor force: Vinh Phuc has a large and young population, with a high proportion of skilled workers This provides Toyota with a ready pool of employees to draw from (CEO Piaggo) Ms Do Thu Hoang, Deputy General Director of Toyota Motor Vietnam, has praised Vinh Phuc province as one of the most attractive investment destinations in Vietnam, particularly for Japanese investors like Toyota She has highlighted the province's appealing investment policies and its commitment to improving the investment climate, even in the face of challenges such as the COVID-19 pandemic Specifically, Hoang has commended Vinh Phuc's rapid implementation of the COVID-19 vaccination program and its effective measures to support foreign businesses during the pandemic These efforts have helped to ensure that businesses can operate smoothly and continuously, even in challenging times  Supportive government policies: Toyota has praised the Vinh Phuc provincial government for being efficient and transparent The government has been quick to respond to Toyota's requests and has helped to create a smooth business environment 17 for the company The government has also offered Toyota a number of incentives, such as tax breaks and land subsidies - In 2019, Toyota was granted a corporate income tax (CIT) exemption for four years, starting from the first year of profit generation Toyota was also granted a 50% reduction in CIT for the next nine years - In addition, Toyota was exempted from import duties on machinery and equipment used for its manufacturing activities In addition to power access: The Vietnamese government has invested in the development of power infrastructure in order to meet the growing demand for electricity from manufacturing companies They also implemented a number of policies to attract investment in the power sector, such as feed-in tariffs and renewable energy certificates As a result of these efforts, Vietnam has been able to maintain a reliable and affordable supply of electricity to manufacturing companies Since Toyota began operations in Vietnam, it has received strong and positive support from local authorities, particularly in the areas of tax policy, power access, and water supply for its manufacturing activities (Toyota shared) Developed infrastructure: Vinh Phuc has a well-developed infrastructure, including roads, electricity, and water supplies This is essential for a manufacturing operation like Toyota's (Toyota shared) XII Toyota’s Vietnam achivement Since its establishment in 1995, Toyota Motor Vietnam (TMV) has achieved numerous significant milestones From marking its growth with the production of the 50,000th vehicle in 2005 to continuing this growth by producing the 500,000th vehicle in 2019, TMV has consistently expanded its reach Additionally, TMV has opened new branches and centers nationwide, expanded its business scale, introduced new brands (in 2013, officially launching the Lexus brand), and incorporated new products, services, projects, and technological applications into its production With a focus on "sustainable development" in Vietnam, TMV and its employees have been working relentlessly to move forward toward a brighter future for Vietnam Their successes have been acknowledged through numerous awards and accolades from the Vietnamese government and various international organizations For their continuous contributions to the automotive industry and Vietnamese society, TMV was awarded the Third-Class Labor Medal and is recognized as one of the most successful foreign direct investment (FDI) enterprises in Vietnam 18 References https://www.britannica.com/topic/Toyota-Motor-Corporation https://global.toyota/en/company/trajectory-of-toyota/history/ https://www.toyota-global.com/company/history_of_toyota/75years/ https://toyota-cms-media.s3.amazonaws.com/wp-content/uploads/ 2022/01/220121_Toyota_Timeline_PDF.pdf https://www.reuters.com/article/us-toyota-history-idUST13898620080210 https://www.youtube.com/watch?v=me_Yb9wvYYU https://panmore.com/toyota-mission-statement-vision-statement-analysis https://www.statista.com/topics/1893/toyota/#topicOverview Trang thơng tin th ức Toyota Việt Nam - 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