Vietnam’s 2017 automobile market below expectation

  • ngày 2018/01/11

The Vietnam Automobile Manufacturers’ Association (VAMA) announced on January 10 that it sold 27,882 automobile units in December 2017, up 13 percent from the previous month. 

Vietnam’s 2017 automobile market below expectation, vietnam economy, business news, vn news, vietnamnet bridge, english news, Vietnam news, news Vietnam, vietnamnet news, vn news, Vietnam net news, Vietnam latest news, Vietnam breaking news

Of the figure, 14,621 were passenger cars, up 14 percent; 11,889 were commercial vehicles, up 13 percent while 1,372 were special-use vehicles, down 6 percent month-on-month. 

Also in December 2017, up to 20,047 units were assembled at home, a month-on-month increase of13 percent and 7,835 others were imported, marking a 11 percent rise. 

Last year, a total of 272,750 units were sold, down 10 percent yearly. The sales of passenger cars, commercial and special-use vehicles decreased by 15 percent, 2 percent and 12 percent, respectively. 

As of late December, the sales of domestically-assembled units fell by 19 percent to 194,960 while imported ones increased 9 percent to 77,790. 

The falling sales were attributed to consumers’ wait for decrease in automobile prices in early 2018 when automobile import tariff will slip to zero percent in accordance with the ASEAN Trade in Goods Agreement. 

In order to stimulate demand, almost all domestic assemblers and distributors offered a series of promotions and discounts. However, consumers still showed little interest. 

However, in mid October, the government issued Decree No.116/2017 ND-CP on tightening automobile manufacturing and trade.

Later in November 16, 2017, it issued Decree No.125/2017/ND-CP on amendments and supplements to some articles of Decree No.122/2016/ND-CP on import tariff and preferential import tariff, list of goods and their flat tax, compound tariff and out-of-quota import tariff. 

Accordingly, flat and compound tariffs on imported secondhand automobiles will increase by thousands of USD from January 1, 2018. 

According to industry insiders, the market could see decrease in prices of domestically-assembled automobiles this year thanks to zero percent import tariff on automobile spare parts and 5-percent reduction in special consumption tax on units with engine 2.0 and less. 

Thaco, Huyndai Thanh Cong and Toyota Vietnam are offering discounts on such kind of vehicles but their prices will not be cheaper than promotion periods in 2017.

Source: VietNamNet

Related Articles