The sales of automobile surged 62% month-on-month in May following the end of social distancing measures, according to the Vietnam Automobile Manufacturers’ Association (VAMA).
The government will soon issue the legal document amending Decree 116 on the conditions for manufacturing, assembling, and importing cars, and providing car maintenance services.
The Ministry of Industry and Trade will propose to build a credit package of 100 trillion VND (4.4 billion USD) for developing the support industry for industrial sectors, especially automobile production.
The total automobile sales in the first five months of 2019 surged by 22 percent year-on-year to 126,646 units, the Vietnam Automobile Manufacturers’ Association (VAMA) reported on June 11.
The Vietnam Automobile Manufacturer Association (VAMA) reported on May 13 that its members sold 21,021 vehicles in April, a decrease of 35 percent against the previous month.
Vietnamese automobile producers are speeding up localisation in a bid to offer cheaper cars.
The automobile industry is one of the world’s most important economic sectors by revenue. In Vietnam in particular, the industry dated from 1955 after the liberation of North Vietnam. Between 1955 and 1975, the nation mainly manufactured auto parts, meeting the demand on maintenance and repairs.
Automobile sales in the two first quarters of 2018 went down 6% compared to the same period last year to reach 125,659 units, the Vietnam Automobile Manufacturers’ Association (VAVA) reported on July 10.
The use of effective policies in the automobile sector since the beginning of the year has boosted the production and assembling of automobile and better controlled imported vehicles in the first six months of 2018.
While some automobile assemblers have stopped domestic production and shifted to importing products, others have poured more money into production lines in Vietnam.
The Ministry of Finance has promised to study and report to the Government recommendations by the Vietnam Association of Mechanical Industry (VAMI) on policies to promote domestic automobile production.
The Ministry of Industry and Trade (MoIT) has asked the Ministry of Finance to remove the special consumption tax for locally-manufactured auto parts.
Foreign-invested auto enterprises in Vietnam have canceled orders for imports from Thailand and Indonesia because they still cannot get certificates from agencies of export countries, as required by Decree 116, according to Pham Anh Tuan from the Vietnamese Auto Manufacturers Association (VAMA).
Vietnam once put high hopes on automobile joint ventures, believing that foreign technologies would help develop the automobile industry. However, it now believes that it would be better not to rely on outsiders.
Most of the domestic auto industry went into a tizzy when Decree 116 tightening controls over the import and assembly of cars was issued in October, and days away from its official implementation, the worries and divisions remain.
Thanh Cong Group has officially signed a new joint venture with the Republic of Korea’s Hyundai Group to manufacture and distribute commercial vehicles in Vietnam.
As Thaco’s car sales decreased, the Quang Nam province’s budget revenue suddenly dropped by VND3 trillion. This news has been cited by economists to show the role of large private conglomerates in the economy.
Brand new cars are being sold at hundreds of millions of dong lower than initial prices, while used cars remain unsold.
Vietnamese auto manufacturers are trying to increase the localization ratios in their products in order to enjoy preferential tariffs when exporting their cars to ASEAN countries.