Top ten auto events in 2013 in rear-view mirror

From top luxury car manufacturer coming to Vietnam to the first Vietnam Motorcycle Festival in passing through new incentives, a glance at the 10 auto events in 2013. Illustrative image (Photo: VNA) 1. World's top luxury car manufacturer comes to Vietnam British luxury car maker Rolls Royce appointed Regal Motor Cars as its first dealer in Vietnam, giving the company a foothold in one of the region's emerging auto markets. As many as 70 Rolls Royce cars are running in Vietnam, four of them Phantom Dragons - a limited edition that costs 1.2 million USD. 2. Vietnam Motorcycle Festival 2013 revs up Ho Chi Minh City The Vietnam Motorcycle Festival 2013, the first of its kind in Vietnam, was held in Ho Chi Minh City from July 27 to 28 and was attended by more than 1,200 high-end motorbikes from clubs nationwide. The event showcased the latest motorcycles from a wide range of international brands, including Harley-Davidson, Benelli, BMW, Kawasaki, KTM, Pilsa, Suzuki, Triumph and … [Read more...]

Top ten auto events 2013

1. World's top luxury car manufacturer comes to Viet Nam British luxury car maker Rolls Royce appointed Regal Motor Cars as its first dealer in Viet Nam, giving the company a foothold in one of the region's emerging auto markets. As many as 70 Rolls Royce cars are running in Viet Nam, four of them Phantom Dragons - a limited edition that costs US$1.2 million. 2. Vietnam Motorcycle Festival 2013 revs up HCM City The Vietnam Motorcycle Festival 2013, the first of its kind in Viet Nam, was held in HCM City from July 27 to 28 and was attended by more than 1,200 high-end motorbikes from clubs nationwide. The event showcased the latest motorcycles from a wide range of international brands, including Harley-Davidson, Benelli, BMW, Kawasaki, KTM, Pilsa, Suzuki, Triumph and Victory. 3. Automobile firms want import tax payment deadline extended Many automobile businesses have asked the Government to extend its deadline for import tax payments because they need to concentrate on the … [Read more...]

Vinaxuki wants tax reduction and bank loan

One of two largest Vietnamese auto brands, Xuan Kien Automobile Joint Stock Company (Vinaxuki) has asked the Government to reduce the 70 percent consumption tax on its locally made cars from January 2014. Vinaxuki said this would help expand the manufacturing of eight-seat vehicles, popular in rural areas, taxi business as well as push up its localisation process. The company also wants to borrow VND250 billion (US$11.9 million) from Viet Nam Development Bank over seven years under the national mechanical engineering plan. Besides it wants to borrow long-term funds or delay paying tax from October this year so that it can invest in research, design, technology transfer and make its own engines.   Vinaxuki has been manufacturing and distributing models of buses and trucks. Its factories have a total capacity of 60,000 units per year. Its move follows the Government’s acceptance of a request from the Truong Hai Automobile company (Thaco) to extend its deadline for paying … [Read more...]

Car makers plead for Gov’t help

HA Noi (VNS) — Xuan Kien Automobile Joint Stock Company (Vinaxuki) has asked the Government to reduce the 70 per cent consumption tax on its locally made cars from January. Vinaxuki said this would help expand the manufacturing of eight-seat vehicles, popular in rural areas and as taxis - as well as push up its localisation process. The company also wants to borrow VND250 billion (US$11.9 million) from Viet Nam Development Bank over seven years under the national mechanical engineering plan. It also wants to borrow long-term funds or delay paying tax from October this year so that it can invest in research, design, technology transfer and make its own engines.. Vinaxuki has been manufacturing and distributing models of buses and trucks. Its factories have a total capacity of 60,000 units per year. Its move follows the Government's acceptance of a request from the Truong Hai Automobile company (Thaco) to extend its deadline for paying import tax. Many other automobile businesses have … [Read more...]

Ministry proposes new consumption tax calculation for imported autos

Quoc Hung The ministry’s proposed calculation of SCT will focus on under 24-seat autos in a fresh move to narrow the gap between the SCT imposed on imported and domestically assembled autos. Accordingly, this tax on imported autos of under 24 seats would go up as sale costs and service fees on the local market are also taken into account. The ministry wants the new SCT calculation to take effect from January 1 next year to help protect domestic auto manufacturers and counter budget revenue reductions. Under the existing calculation, SCT is calculated for imported autos based on the total CIF (cost, insurance and freight) price plus import tax. But the ministry wants SCT to be set on the import price, costs of sale, advertisement and marketing, commissions for retailers and profit of importers. The ministry explained the new method will ensure the fair calculation of SCT for car importers and assemblers and enable the country to deal with tax cuts on cars imported from … [Read more...]

January-April CBU auto imports from China surge

Quoc Hung Customers inspect an imported car on show at an auto exhibition in HCMC. Vietnam imports over 35,000 autos worth nearly US$880 million in the first four months of this year, according to the General Department of Customs - PHOTO: QUOC HUNG The report said CBU units from the northern neighbor made up the biggest proportion of auto imports in Vietnam in January-April, followed by South Korea with 7,740 units (up 48% year-on-year), Thailand with 6,850 (up 165%), India with 5,700 (up 164%) and Japan with 2,290 (up 120%). Vietnam imported more than 35,000 autos worth nearly US$880 million in the four-month period, increasing 131% in volume and 180.6% in value compared to the same period last year. The total volume comprised of 13,200 cars of under nine seats, surging 89.3% year-on-year. Truck imports jumped 93.6% to 12,930 units while other vehicles took a nearly six-fold increase to 8,890 units. According to car importers, most of the autos imported from China in the … [Read more...]

Car buyers continue preferring imported vehicles

Vietnamese people have shown that they favor imported cars over locally assembled vehicles, as the debate about whether the local automobile industry can withstand a possible collapse after 2018 has not ended. Last month Mercedes-Maybach, the re-launched luxury brand from Daimler AG, reported that Vietnamese customers have ordered ten units of its luxury Mercedes-Maybach S600 model, which cost VND9.6 billion (US$451,850) each. Fifty Mercedes-Maybach S600 cars will be produced for the global market in 2015, the German carmaker said. Official figures have also indicated that sales of imported cars in the first four months of this year were much better than expected, with 34,000 units worth some $883 million sold, an increase of 125.4% and 188.8% in volume and value compared to the same period last year. According to a recent report by the General Statistics Office (GSO), about 9,000 automobiles, or completely built units (CBUs), were imported into the country last month with a … [Read more...]

Auto sales in April rise 11%

(CPV) - Auto sales in April reached 18,178 units, an 11% rise over a month earlier and a 60% increase from a year ago, reported the Vietnam Automobile Manufacturers Association. Of this, 9,423 passenger cars were sold (up 0.1%) and 8,755 commercial cars were sold (up 25%). Output of domestically assembled cars reached 13,980 units, up 9% from the previous month while the number of imported CBU cars was 4,198 units, up 19% over a month earlier. The results for April have increased the total sales in the first four months this year to more than 66,900 units, up 62% against the same period last year. Of this, sales of passenger and commercial cars rose by 60% and 67% year on year, respectively. March also witnessed impressive auto sales with 16,399 units, up 33% from the previous month and up 41% year on year, said the Association./. … [Read more...]

Car sales up in April

April was a positive month for Vietnam’s auto sales, though carmakers have claimed difficulties conducting business in the country's unstable and undeveloped automobile industry. The month's sales figures released by the Vietnam Automobile Manufacturers Association (VAMA) showed that nearly 18,200 units were sold in the domestic market, marking an increase of 11 percent from March this year and 60 percent from the same period last year. A total of 9,423 passenger cars and 8,755 commercial vehicles were sold in April. Domestic carmakers assembled 13,980 units, 9 percent higher than the previous month, while 4,198 units were imported, a rise of 19 percent compared with the month before. The April figures have helped increase the total sale of more than 66,900 units in the first four months of this year, up by 62 percent versus last year. Of the total sales, VAMA members together sold 16,643 units, 9 percent and 65 percent more than they did in March this year and April last … [Read more...]

April car sales up, but producers worry

April was a positive month for Vietnamese auto sales, though carmakers have claimed difficulties conducting business in the country's unstable and undevel-oped automobile industry. The month's sales figures released by Vietnam Automobile Manufacturers Association (VAMA) showed that nearly 18,200 units were sold in the domestic market, marking an increase of 11% from March this year and 60% from the same period last year. A total of 9,423 passenger cars and 8,755 commercial vehicles were sold in April. Domestic carmakers assembled 13,980 units, 9% higher than the previous month, while 4,198 units were imported, a rise of 19% compared with the month before. The April figures have helped increase the total sale of more than 66,900 units in the first four months of this year, up by 62% versus last year. Of the total sales, the VAMA members together sold 16,643 units, 9% and 65% more than they did in March this year and April last year, respectively. The figures brought the total sales … [Read more...]

Auto stocks make gains on investor attention

Auto stocks are drawing interest from investors as they continue to climb. The five auto stocks listed on the two exchanges are Hong Huy Investment Services Co (HHS), TMT Automobile Co (TMT), Saigon General Service Corp (SVC), Hang Xanh Motors Service Co (HAX) and Truong Long Auto & Technology Co (HTL). The Vietnamese stock market saw sluggish trading early this year, with the VN-Index increasing just 1.6 percent and HNX-Index dropping 3.8 percent. Nevertheless, auto stocks advanced significantly, propped up by encouraging business results and a positive outlook for the auto market in 2015. HTL witnessed the biggest growth, with the share price climbing 154 percent from 25,200 VND (1.16 USD) in December to 64,000 VND on May 8. TMT also saw strong development with a rise of 98 percent in value, while other stocks made gains between 10-43 percent during the period. This development was attributed to positive earnings, with HHS reporting a consolidated net profit of 54.7 … [Read more...]

CBU imports surge in January-April

Quoc Hung Customers scrutinize autos on display at an exhibition in HCMC. Vietnam imported 34,000 CBU units in the January-April period, up 125% year-on-year - PHOTO: QUOC HUNG Figures of the General Statistics Office (GSO) showed the country imported 34,000 autos worth US$883 million in the period. The volume included 9,000 cars last month, 4,000 units higher than a year ago. Autos had the sharpest rise in terms of import revenue and volume in January-April and contributed to the country’s trade deficit of some US$3 billion in the period. With the strong growth, experts predicted imported autos would dominate the local auto market before Vietnam lowers duties on car imports from other ASEAN markets to 0% in the next three years. In 2014, auto imports rose to 72,000 units worth a total of US$1.57 billion, jumping 103.8% in volume and 117.3% in value over the previous year or making up nearly half of auto sales last year. The Vietnam Automobile Manufacturers … [Read more...]

Automobile industry aims at increasing localization ratio

(VOVworld) – The Ministry of Industry and Trade has worked with the Ministry of Finance and the Vietnam Automobile Manufactures’ Association, VAMA, to develop policies and mechanisms to realize the Vietnam Automobile Development Strategy until 2025, with a vision to 2035. Auto industry association calls for rethink on tax policy (Photo: Vietnam Economic Times) Deputy Minister of Industry and Trade Tran Tuan Anh said "Vietnam has continued to boost its automobile industry to guarantee the ratio of locally-made components, customers, and market demand, and match Vietnam’s international commitments. The Ministry of Industry and Trade, the Ministry of Finance, VAMA, and related agencies have continued to build specific policies on export and import tariffs, and incentives for the mechanical and support industries, and automobile manufacturers." … [Read more...]

Automobile industry development aims at increasing localization ratio

(VOVworld) – The Ministry of Industry and Trade has worked with the Ministry of Finance and the Vietnam Automobile Manufactures’ Association, VAMA, to develop policies and mechanisms to realize the Vietnam Automobile Development Strategy until 2025, with a vision to 2035. Auto industry association calls for rethink on tax policy (Photo: Vietnam Economic Times) Deputy Minister of Industry and Trade Tran Tuan Anh said "Vietnam has continued to boost its automobile industry to guarantee the ratio of locally-made components, customers, and market demand, and match Vietnam’s international commitments. The Ministry of Industry and Trade, the Ministry of Finance, VAMA, and related agencies have continued to build specific policies on export and import tariffs, and incentives for the mechanical and support industries, and automobile manufacturers." … [Read more...]

2015 auto import figures reflect Vietnamese desire for cars

VietNamNet Bridge - The amount of money Vietnamese spent in the first four months of the year to import cars, from budget models to luxury vehicles, increased sharply. According to the General Statistics Office (GSO), Vietnam imported 9,000 cars in complete built unit (CBU) in April, a sharp increase of 4,000 cars compared with the same period last year. As such, Vietnam has imported 34,000 cars this year, an increase of 125 percent. Thoi Bao Kinh Te Sai Gon reported that Vietnam had to spend $833 million for imports, up by three times over the corresponding period last year. The high import turnover has far exceeded the level predicted by analysts. The GSO’s report showed that CBU cars was saw the highest import turnover increase in the first four months of the year. The sharp increase in car import turnover led to total import turnover increasing significantly by 20 percent compared to the same period last year. There was an 8 percent increase in export turnover. This … [Read more...]

ASEAN may signal ‘Death Knell’ of Vietnam’s auto industry

(VOV) - Vietnam saw auto industry revenues surge in 2014 amid the rapid expansion of a young, style-conscious middle class following 15 consecutive years of economic growth of over 5%. While major regional vehicle markets Indonesia and Thailand experienced annual declines in sales last year, revenues in Vietnam shifted into high gear, lunging 43 per cent on-year, according to the Vietnam Automobile Manufacturers Association (VAMA). Toyota, Mercedes-Benz, Ford and Honda all reported solid annual sales increases, despite relatively high import taxes imposed on both completely built-up (CBU) vehicles and completely knocked down (CKD) imports. Completely built-up and completely knocked-down Quite simply, when a resident purchase a foreign vehicle brand in Vietnam, they have the option of choosing either a CBU or a CKD version. In order to protect the local auto industry the government has levied higher import duties on all CBU foreign vehicles. This, in substance, serves as a penalty … [Read more...]

General Motors launches 2015 Chevrolet Orlando

General Motors Vietnam on April 17 introduced the 2015 Chevrolet Orlando, its latest generation of the seven-seat family MPV. Priced at VND759 million ($35,600) (VAT included), the new Orlando can meet from daily needs to longer excursions, and from friendly visits to family adventures according to GM Vietnam managing director Gaurav Gupta. "It offers fun, entertainment and relaxation for April 17's modern families that do not follow the crowd," he said. In Vietnam, the Orlando model is going to be directly competing with the quite similar Toyota Innova. However, given its interior amenities, the Orlando’s price is considered a competitive advantage as the Innova is priced at between VND767 million ($36,000) and VND833 million ($39,100). GM Vietnam, a member of GM Southeast Asia Operations, has headquarters and a manufacturing facility in Hanoi. It has an annual assembly capacity of 30,000 vehicles and operates a nationwide sales network of 15 dealer facilities in major … [Read more...]

Vietnam’s auto imports rocket in Q1

Vietnam imported 23,000 automobiles worth 537 million USD in the first quarter, shooting up 116.4 percent in volume and 154.7 percent in value from a year before, said the Ministry of Planning and Investment’s General Statistics Office. In March alone, 8,000 completely built up units, valued at 217 million USD, were imported. The country imported 72,000 completely built up units worth 1.57 billion USD in 2014, when 157,810 automobiles were sold, representing the highest number of annual auto sales over the last five years in Vietnam, according to the Vietnam Automobile Manufacturers’ Association. While the sales of locally-assembled automobiles were 32 percent higher than 2013, the industry saw a dramatic 83 percent surge in sales of imported vehicles.-VNA … [Read more...]

Vietnam automobile industry risks collapse after Toyota announcement about possible production end

The automotive industry in Vietnam is facing a collapse after Toyota has announced that it may stop assembling automobiles in the Southeast Asian country, considering future cuts in taxes on ASEAN vehicles. As announced early this month by Yoshihisa Maruta, president of Toyota Motor Vietnam, the Vietnamese unit of the world’s largest carmaker is mulling over putting an end to production and switching to imports in order to enjoy the preferential tax treatment an ASEAN trade pact will offer in the next three years. ASEAN stands for Association of Southeast Asian Nations, including Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei, Cambodia, Laos, Myanmar, and Vietnam. According to the road map of the ASEAN Free Trade Area (AFTA), automobiles under ten seats imported from ASEAN countries are entitled to a 50 percent rate this year. The rate will be cut to 40 percent next year, 30 percent the following year, and 0 percent in 2018. As a result, after … [Read more...]

Auto industry faces risk of collapse

The domestic automobile industry faces the risk of collapse, with both consumers and manufacturers shifting to imports, according to the Tuoi tre (Youth) newspaper. Imported cars on sale on Xuan Dieu Street in Hanoi. The local automobile industry is facing difficulties because consumers and manufacturers are shifting to imports. — VNS Photo Truong Vi A resident of Hanoi's Cau Giay District said he had decided to spend more than VND600 million (US$28,570) on a five-seat Mitsubishi Attrage CVT, which is imported from Thailand, despite studying domestically-assembled sedans. "After testing several domestic cars my friends own, I believe this imported one is more comfortable...and its price is quite reasonable," the unnamed motorist added. Imported cars have reportedly attracted more buyers recently, thanks to their better quality. In particular, the number of vehicles from Thailand is increasing, given the variety of categories and advantages related to import duties that they … [Read more...]