Vietnam's auto market posts solid growth

The Vietnam Automobile Manufacturers’ Association (VAMA) has announced that the total market sales of its member units reached 38,656 vehicles last month, a month-on-month increase of 30%, and a year-on-year increase of 6%.

VAMA's member units had total sales of 257,390 vehicles in the first 11 months of this year, up 3% over the same period last year.

However, in addition to car sales of VAMA member units, the Vietnamese auto market also had the presence of many other automakers such as Audi, Jaguar Land Rover, Mercedes-Benz, Nissan, Subaru, Volkswagen and Volvo, though these automakers do not disclose their business results.

TC MOTOR reported sales of 7,529 vehicles last month, bringing the cumulative total to 60,711 vehicles in the 11 months.

VinFast also sold 3,829 vehicles last month.

According to the official sales from VAMA, TC MOTOR and VinFast, the Vietnamese auto market had total sales of 350,777 vehicles of all kinds from the beginning of the year to the end of last month.

Experts said that the increase of 30% in car sales last month and the 37% increase in domestically-assembled cars showed that the business picture of automobile businesses continued to thrive.

The growth occurred as the COVID-19 pandemic was under control, social distancing measures in many provinces and cities across the country were lifted and there was a 50% reduction of registration fees for cars manufactured and assembled in Vietnam applied from the beginning of this month.

Before the registration fee reduction, many people had taken advantage of buying a car in advance to receive a "dual" incentive from the car company's promotion and the new policy of a 50% reduction in registration fee. Many people bought cars last month and waited until the policy took effect this month to register.

For imported CBU cars, although not entitled to a preferential policy of 50% on registration fees, importers and distributors have applied support from 50% to 100% of registration fees or other promotions to attract customers.

Experts also forecast that along with the good control of the COVID-19 pandemic in many provinces and cities, many businesses would continue to operate again, the economic situation would be improved, and car consumption would continue while entering the peak shopping season of the year and traditional Tet (Lunar New Year) holiday.