The Czech Republic’s automotive industry is a cornerstone of its economy, contributing significantly to industrial output and exports. In 2019, the sector accounted for more than 9% of the nation’s GDP, 26% of manufacturing, and 24% of exports. The country produced 1.4 million passenger cars and over 5,000 buses that year.  

The industry encompasses prominent manufacturers such as Škoda Auto, Hyundai, and Toyota, alongside a robust network of suppliers and research facilities. Škoda Auto, for instance, is a significant player with a long-standing history in the Czech automotive sector.  

In January 2025, Vietnam and the Czech Republic elevated their bilateral relations to a strategic partnership, marking a significant milestone in their 75-year diplomatic history. This partnership aims to deepen cooperation across various sectors, including the automotive industry. 

A notable development in this collaboration is Škoda Auto’s plan to invest in Vietnam. The company views Vietnam as an important gateway to the ASEAN market, with the potential to become Škoda’s manufacturing hub for ASEAN and other regions.  

This strategic move is expected to diversify Vietnam’s automotive market and enhance its manufacturing capabilities, benefiting both nations economically.  

The strategic partnership also emphasizes leveraging the EU-Vietnam Free Trade Agreement (EVFTA) to bolster trade and investment, creating favorable conditions for businesses in both countries. This includes collaboration in infrastructure development, renewable energy, pharmaceuticals, and the automotive industry.  

In summary, the Czech Republic’s automotive industry is integral to its economy, and the enhanced strategic partnership with Vietnam opens new avenues for collaboration, particularly in automotive manufacturing and trade.