A Matter of Assembled Automobiles in Vietnam with High Prices but Low Quality
- Author Dao Nam Cao
- Co-Author Van Trung Tran, Van Huong Dong
- DOI
- Country : Vietnam
- Subject : Transport
Keywords : Automobile industry, domestic assembly, cost
Abstract
The automobile industry in Vietnam is ahead of the important transfer period. 1/1/2018, imported cars in ASEAN will enjoy 0% tax. The "Judgment Day" is approaching, businesses are still struggling to ask questions should invest in domestic assembly or switch to imports. By 2017, the Vietnamese automobile industry is about 20 years old. At the same time, a lifetime of people is old enough, but with the car industry in Vietnam, 20 years is not big enough. After 20 years of protection, the cars assembled in Vietnam cost twice as much or even triple the US market, although they enjoy a lot of import tariff incentives. Vehicle quality is extremely low, localization rate is only 15-40%, while the corresponding figure in Thailand is 80%. The goal of the auto industry is to contribute 10% of GDP, but only about 3%. Car production is only about 1/3 of the registered number.
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