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...]

Trade deal hurting local auto makers

The Vietnam Association of Mechanical Industry (VAMI) has requested the Prime Minister and the Ministry of Finance to adjust the import tax imposed on complete built up (CBU) trucks. This has been requested so the revised tax is more in keeping with tax levied on trucks, which are locally-assembled with imported parts that are complete knock down (CKD). The proposal was made after VAMI members evaluated the import tax imposed on CBU trucks and the current tariff regulated under the finance ministry's circular, which is an implementation of the ASEAN–China Free Trade Agreement (ACFTA) for the 2015 to 2018 period. VAMI said the ministry had allowed a number of imported CBU trucks the kind of preferential tax rate, which is unfair for domestic manufacturers who have been producing and assembling trucks with CKD parts. It added that when importing CKD parts, besides import tax, domestic firms are also burdened with many other costs, such as investment capital plugged into … [Read more...]

Monthly auto sales fall dramatically

Cutomers view an imported Mercedes S-Class car at a showroom of Mercedes Benz Vietnam (Photo: VNS/VNA) Automobile sales reached 12,329 units in February, a 38 percent drop from January, reported the Vietnam Automobile Manufacturers’ Association (VAMA). Despite the plunge, the figure still represented an annual leap of 69 percent. More than 7,900 of the cars sold were assembled in Vietnam, down 41 percent, while another 4,400 were foreign imports, down 32 percent, VAMA said. In February, the Truong Hai Auto Corporation led car sales with 2,965 sales, followed by Toyota Motor Vietnam (2,868 units), Ford Vietnam (925 units), Honda Vietnam (505 units), and GM Vietnam (419 units). Two-month automobile sales soared 76 percent from the same period in 2014. The sales of domestically assembled and imported units shot up 73 percent and 111 percent annually, respectively.-VNA … [Read more...]

Auto imports drop 50% in Tet month

Hung Le Cars are on display at an exhibition in HCMC. CBU auto imports fell in February due to the long Tet holiday - PHOTO: HUNG LE However, data of GSO showed that CBU imports last month surged 65% year-on-year, suggesting that demand for imported cars is strong on the local market. The country spent around US$130 million importing 5,000 CBU units in February, or US$56 million lower than the first month of 2015, but US$82 million higher than February last year. In the first two months of this year, Vietnam imported around 15,000 CBU autos valued at some US$316 million, year-on-year rises of 140% in number and 170% in value. Therefore, industry sources said the decline in imports in February was nothing abnormal given the long Tet holiday. More CBU autos will be imported into Vietnam as auto assembly joint ventures tend to shift to car imports for domestic sale. The country will cut tariffs on CBU autos imported from ASEAN to 0% in 2018 in line with the ASEAN Trade in … [Read more...]

January car sales accelerate year-on-year

Automobile sales touched 19,979 units in January, down 1 percent from December, but surged 80 percent from a year ago, a Vietnam Automobile Manufacturers Association (VAMA) report stated. However, the report also pointed out the existing gap between the growth in sales of complete-knock-down (CKD) and completely-built-up (CBU) automobiles. Data showed that 13,487 CKD autos were sold in January, reflecting a rise of 69 percent from the same month last year, while the sales of CBU autos reached 6,492 units, up 110 percent. January was also the month leading to the Tet (Lunar New Year) holiday, which often sees an upswing in auto purchases and many vehicle manufacturers report record sales during the month. Toyoto Motor Vietnam (TMV) sold 4,262 units in January this year, jumping 35 percent over the same period last year and reflecting a record high sale for January in the last two decades. Ford Vietnam also recorded a 60 percent growth in sales over the same period last year to … [Read more...]

Car sales off to good start

Hung Le Customers scrutinize a luxury car on display at an auto show in this file photo. Sales of CBU autos last month soared 110% year-on-year - PHOTO: HUNG LE According to the Vietnam Automobile Manufacturers Association (VAMA), 20,000 autos were sold last month, surging 80% over a year ago. Of which, passenger cars soared 64% year-on-year to 13,680 units while trucks rose by 30% to 6,300. Toyota Vietnam posted a sales growth rate of 35% with 4,262 units sold last month, the highest sales volume for January in the past 20 years of its operation in Vietnam. The volume included 1,853 autos consumed in the north, 630 in the central region and 1,779 in the south. Ford Vietnam also reported the highest monthly sales ever with 1,523 autos sold in January, surging 60% year-on-year. Truong Hai Auto Joint Stock Co. (Thaco) delivered 1,800 Kia autos to customers last month, up a whopping 110% over January 2014 and the highest monthly sales volume since Kia car brand was launched … [Read more...]

Has the state given up the “Vietnam-made automobile” dream?

VietNamNet Bridge – The breakup of the State with Vinamotor, in the eyes of analysts, is an "unhappy ending" of a strategy to protect domestic automobile production. After failing to sell 51 percent of the state’s capital at the Vietnam Motors Industry Corporation (Vinamotor) earlier last year, the government decided to sell the entire business. Vinamotor was established 51 years ago to become the leading mechanical engineering enterprise under the management of the Ministry of Transport (MOT). In 2003, the government decided that Vinamotor needed to develop into a key enterprise in the automobile industry. Vinamotor has been "living well" with the production and assembling of passenger cars, large-size buses (more than 29 seats), and over-10-ton trucks. It has provided transport services and has traded with capital of VND500 billion allocated by the state. A report from the Vietnam Automobile Manufacturers’ Association (VAMA) showed that automobiles bearing … [Read more...]

Toyota Vietnam CEO elected VAMA Chair

VietNamNet Bridge – The Chief Executive Officer (CEO) of Toyota Vietnam has replaced Ford Vietnam’s CEO to assume the chairmanship of the Vietnam Automobile Manufacturers Association (VAMA) as of January 30, according to VAMA’s announcement. Mr. Yoshihisa Maruta. Accordingly, Mr. Yoshihisa Maruta will hold the position for the term 2015-2017, replacing Mr. Jesus Metelo N. Arias Jr, who is now the second vice chair of the association. Representing wholly-Vietnam owned firms is Mr. Bui Kim Kha, a representative of Truong Hai Auto (THACO), who is the first vice president. This is the first time a Vietnamese representative joining the management board of VAMA. According to the review report of VAMA, 157,810 cars were sold in 2014, up 43% compared to 2013. The members of VAMA sold 133,588 cars, up 38% compared to 2013. Na Son … [Read more...]

January CBU imports triple last year

Hung Le A model poses next to a Lexus car at an exhibition of high-end autos in this file photo. CBU imports in January triple the volume recorded a year ago - PHOTO: HUNG LE GSO data showed Vietnam spent US$156 million importing CBU autos in the first month of 2015, up a staggering 144.5% over a year ago. Industry sources said the strong growth of CBU imports is not surprising because January is the month in which people normally buy new cars for the Lunar New Year holiday, or Tet. CBU imports are forecast to keep rising strongly this year because most auto-assembly joint ventures in Vietnam import CBU autos for domestic distribution while they have no plan to assemble those models locally, while import tariffs on CBU vehicles are falling. Even Mercedes-Benz, the only luxury automaker which has an assembly factory in Vietnam, might be less affected by Vietnam’s tariff reductions on thousands of items imported from Southeast Asian countries as committed to the ASEAN … [Read more...]

Auto prices unlikely to fall this year

Hung Le Truong Hai Auto Corporation (Thaco) has announced to provide special offers of up to VND50 million for each of its customers. However, a representative of the firm told the Daily that such a move simply aims to encourage customers to buy cars at the year-end and have nothing to do with Vietnam’s tax reduction road map. Lowering the selling prices is impossible this year as the Ministry of Finance set the road map for import tax cuts early this year. Accordingly, up to 90% of nearly 10,000 groups of items imported from ASEAN are subject to tariff exemptions from this year and only 7% will have import tax lowered gradually to 0% by 2018, including completely built-up (CBU) vehicles. CBU autos of under ten seats imported from ASEAN countries are entitled to a 50% rate this year and the rate will be lowered to 40% next year, 30% in the following year and 0% in 2018. Therefore, the prices of imported cars may not drop this year as expected by many. The Vietnam … [Read more...]

Special discounts of up to VND50 million for Kia in January

Kia Rio Thaco is offering the year’s biggest chance to own a Kia car, reducing prices by up to VND50 million (US$2,340) between Jan. 5 and Jan. 31 for various Kia models including the popular Morning, K3, and New Sorento. MODELS Maximum discounts in January 2015 (*) in million dong (*) The discount rates depend on generations and areas Kia Morning 13 Kia K3 38 Kia Carens 30 Kia Sorento 36 Kia New Sorento 50 Kia Rio 24 5-door Kia Cerato 20 Kia Sportage 35 Kia Optima 35 Kia Cerato Koup 30 Kia Soul 24 Kia had a busy year in 2014 with many new models introduced to the Vietnamese market, including New Sorento, Kia Soul, Kia Koup, and Rondo. The outstanding trio which represent the new generation and new technology of automobiles are K3, New Sorento and Rondo. The brand has wrapped up 2014 with more than 11,000 cars sold, up 27 percent from the previous year. Nearly 1,500 Kia cars were sold in … [Read more...]

Tet peach tree signals Vietnam spending rebound

Shoppers look at lunar new year decorations in the days leading up to Tet Lunar New Year in Hanoi, Vietnam. For the past three years, Nguyen Thi Oanh could only afford a small kumquat tree for the Lunar New Year festival. With business picking up and smaller fuel bills, she plans to buy a more expensive peach tree for Tet in February. "People are spending more than last year," said Oanh, 46, who sells pork in a market in suburban Hanoi. "Dao trees are twice as expensive as quat trees, but I’m doing better so I can afford to spend a bit more this Tet." The country’s inflation eased to the slowest in at least nine years last month on falling oil prices, providing a boost to household incomes, a trend that’s emerging across Asia’s energy-importing nations. A rebound in consumption would help bolster Vietnam’s economy beyond foreign direct investment and exports, with growth forecast by analysts to reach 6 percent this year for the first time since … [Read more...]

Vietnam’s automotive sales leap 43% in 2014: trade association

Automotive sales in Vietnam reached 157,810 vehicles in 2014, up 43 percent compared to 2013, according to the latest report by the Vietnam Automobile Manufacturers' Association (VAMA). Last year, sales of personal cars increased by 43 percent year on year, topping 100,000 units, while sales of trucks grew by 42 percent over 2013 to reach nearly 57,371 vehicles, VAMA said in its January report. Particularly, in the last month of 2014, 20,208 vehicles were sold in Vietnam, up 27 percent compared to the previous month and up 53 percent compared with the same period in 2013. This was the 21st consecutive month automotive sales saw a year-on-year growth rate in the country and was the highest number of monthly vehicle sales in the last three years. Specifically, the number of personal cars and trucks sold in December reached 13,221 units and about 7,000 units, up 31 percent and 19 percent compared with the previous month. The production of cars assembled locally hit 13,440 … [Read more...]

New record for auto sales in 2014

As many as 157,810 automobiles were sold in 2014, representing the highest number in the recent five years of annual auto sales in Vietnam, according to the Vietnam Automobile Manufacturers’ Association (VAMA). The figure represented a 43 percent increase from 2013. Of them, cars surpassed 100,000 units, reflecting a 43 percent soar while trucks reached 57,371 units, a sharp 42 percent increase. While the sales of locally-assembled automobiles were 32 percent higher than last year, the industry saw a dramatic 83 percent surge in sales of imported vehicles. In December alone, customers bought a total of 20,208 vehicles, up 27 percent against last month and 53 percent above the same period last year, making it the 21st month with increased sales and the highest sales month over the last three years. Truong Hai and Toyota were the two most popular manufacturers last year, with Truong Hai selling 42,399 cars and Toyota following closely behind with 40,820 vehicles. Ford … [Read more...]

Thaco leads Vietnam’s automobile market in 2014

The stable growth of Kia, the rise of Mazda, the return of the legendary Peugeot and the steady growth of truck lines brought Thaco to the top of Vietnam’s automobile market in 2014, with more than 42,000 vehicles sold. Thaco is the only company in Vietnam that assembles and produces all three kinds of automobiles: cars, trucks and buses with 16 to 46 percent of the work made with domestic resources. The company provides a wide range of quality products at reasonable prices. With continuous efforts, the company gained various successes and thrived to the top of Vietnam’s automobile market in 2014 with a record sale of 42,338 vehicles, or 32 percent of Vietnam Automobile Manufacturers’ Association. It is an impressive figure for a business of less than ten years experience and which only joined the car market segment eight years ago. Thaco’s sale of products for commercial purpose, including trucks, buses and other special vehicles, grew steadily by 41 … [Read more...]

Car imports to Vietnam increase considerably

The Hanoitimes - The total import turnover of Completely Built-Up (CBU) automobiles in Vietnam this year reached US$1.446 billion, which nearly matched the record level of US$1.5 billion. The General Statistics Office estimated last month that the total import turnover of automobiles in the first 11 months of the year would be US$1.292 billion with 60,000 units. However, the latest figure disclosed by the General Department of Customs reflected different data from estimates. The most recent figures showed that the country reached 61,595 units, with a turnover value of US$1.345 billion. Moreover, the amount attained this year would reach a record level of imported automobiles, as estimated figures were double those of last year, in terms of both quantity and value. Further, the latest numbers announced by the Vietnam Automobile Manufacturers Association revealed that the assembled and CUB imported units into Vietnam in the first seven months of the year rose by 24% and 62%, … [Read more...]

Automobile imports near record high

The total import turnover of Completely Built-Up (CBU) automobiles in Vietnam this year reached US$1.446 billion, which nearly matched the record level of US$1.5 billion. Further, the General Department of Customs revealed that the country imported 66,025 vehicles, as of December 15. The General Statistics Office estimated last month that the total import turnover of automobiles in the first 11 months of the year would be US$1.292 billion with 60,000 units. However, the latest figure disclosed by the General Department of Customs reflected different data from estimates. The most recent figures showed that the country reached 61,595 units, with a turnover value of US$1.345 billion. Moreover, the amount attained this year would reach a record level of imported automobiles, as estimated figures were double those of last year, in terms of both quantity and value. In addition, imported automobile prices nearly reached US$40,000 per unit. This amount followed those in Russia and the … [Read more...]