Vietnamese automobile industry: Opportunities and Challenges
- Author Cong Tri Tran
- Co-Author Le Hung Duong, Van Huong Dong
- DOI
- Country : Vietnam
- Subject : Transport
Keywords : actual situation, automobile industry
Abstract
In 2017, the government introduced a number of new regulations that focused on boosting domestic production. In spite of that, car sales in 2017 declined and continue to do so in 2018, except for the passenger segment. However, this decline is just a temporary setback. As the industry adjusts to the new regulations, sales will return to their previous upward trend in the near future. Car manufacturers had predicted the decrease in sales, as consumers were waiting for car import tariffs to reduce to zero percent in early 2018, in line with the tariff schedules of ASEAN Trade in Goods Agreement. In the first five months in 2018, 103,746 vehicles were sold, down six percent compared to the same period last year, according to the Vietnam Automobile Manufacturers Association. The sales of domestically assembled vehicles grew by 10 percent during the same period to 87,426. However, sales of imported cars decreased by 46 percent to 16,320 units. Segment wise, sales of passenger cars grew by six percent while commercial and special-purpose vehicles declined by 19 percent and 37 percent year-on-year respectively. By the end of 2018, overall sales are predicted to grow by 6.8 percent year-on-year, to 256,000 units, including commercial and passenger cars.
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