Business
Domestically assembled cars dominate Vietnam's market
By the end of May, revenue from the sales of domestically assembled cars increased by 10% year-on-year, while imported cars saw a sharp decrease of 46%, according to the Vietnam Automobile Manufacturers` Association (VAMA).
Consequently, more than 87,400 domestically assembled cars were sold in the January - May period, up 10% year-on-year, while imported cars stood at 16,300 units, down 46% year-on-year.
The fall in imported car sales was attributed to strict requirements stipulated in Decree No. 116, specifying the regulatory conditions and licenses for automobile manufacturing, assembling, importing, maintenance, and warranty businesses. Substantially, car importers are required to provide a type approval certificate.
The Decree has caused diverse opinions among domestic and foreign automobile manufacturers in a meeting between representatives of concerned parties in February. Foreign companies expressed concern over the decree's incompatibility with international practices, which they claimed interrupts business and exerts negative effects on car imports.
Domestic companies, however, claimed the decree will create fair competition between automobile manufacturers and importers, while at the same time ensuring environmental protection and the safety of customers.
The Government Office on March 16 released instruction by Deputy Prime Minister Trinh Dinh Dung, ensuring fair treatment for car manufacturers and assemblers. The ultimate goal, according to Dung, is the development of the automotive industry.
As of May, Vietnam imported over 9,000 cars, down 80% year-on-year, according to Vietnam Customs. Notably, despite accounting for 80% of the total imported cars to Vietnam during this period, the number of imported cars from Thailand saw a slump of over 60% year-on-year.
According to the Vietnam Automobile Manufacturers' Association (VAMA), a total of 23,000 cars were sold in the market in May, of which more than 15,000 were passenger cars, and the remaining were commercial and special-purpose vehicles.
The sales of domestically assembled cars reached over 19,400 in May, and that of imported cars were 3,600, up 9% and 12% month-on-month, respectively.
Illustration photo.
|
The Decree has caused diverse opinions among domestic and foreign automobile manufacturers in a meeting between representatives of concerned parties in February. Foreign companies expressed concern over the decree's incompatibility with international practices, which they claimed interrupts business and exerts negative effects on car imports.
Domestic companies, however, claimed the decree will create fair competition between automobile manufacturers and importers, while at the same time ensuring environmental protection and the safety of customers.
The Government Office on March 16 released instruction by Deputy Prime Minister Trinh Dinh Dung, ensuring fair treatment for car manufacturers and assemblers. The ultimate goal, according to Dung, is the development of the automotive industry.
As of May, Vietnam imported over 9,000 cars, down 80% year-on-year, according to Vietnam Customs. Notably, despite accounting for 80% of the total imported cars to Vietnam during this period, the number of imported cars from Thailand saw a slump of over 60% year-on-year.
According to the Vietnam Automobile Manufacturers' Association (VAMA), a total of 23,000 cars were sold in the market in May, of which more than 15,000 were passenger cars, and the remaining were commercial and special-purpose vehicles.
The sales of domestically assembled cars reached over 19,400 in May, and that of imported cars were 3,600, up 9% and 12% month-on-month, respectively.
