Tuesday,  Sep 25, 2018,08:01 (GMT+7) 0 0
Car sales continue another somber month
Hung Le
Tuesday,  Mar 13, 2018,23:26 (GMT+7)

Car sales continue another somber month

Hung Le

HCMC – February continued to see a sharp fall in car sales, with just 12,000 units finding buyers, dropping by half compared to January and a third year-on-year, reported the Vietnam Automobile Manufacturers Association (VAMA).

Specifically, VAMA said 12,394 items were sold in February, including 8,660 passenger cars, 3,324 commercial vehicles and 410 special-use automobiles. Notably, the fall struck both locally-assembled and completely-built-up vehicles, with the respectively month-on-month decrease of 48% and 68%.

The reason is due to the long Tet holiday and the stringent Government Decree 116/2017/ND-CP coming into force from January 1, the latter factor prompting car dealers to suspend auto imports into Vietnam.

It is predicted that the market would not recover in immediate future because traders still need time to adjust under Decree 116, which requires imported cars to be accompanied with vehicle type certificates issued by exporting countries.

Even though Honda Vietnam recently imported a large shipment of Jazz, Accord, CR-V and Civic cars from Thailand, it would take one or two more months to complete all procedures before they can be distributed in Vietnam.

Meanwhile, Toyota Vietnam and Ford Vietnam reported that it would take even more time for them to place orders with factories abroad.

Nevertheless, the consumption of cars is expected to bounce back more dramatically thanks to the zero import tax on vehicles made in ASEAN which also came into force early this year.

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