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...]

Hope for car price reductions by 2018 dashed

VietNamNet Bridge - Under the latest version of the draft luxury tax law, cars will not be priced lower before 2018. Under the latest version of the draft luxury tax law, cars will not be priced lower before 2018. Law compilers have submitted to the National Assembly’s Standing Committee the draft law on amending provisions of the Special Consumption Tax. The luxury tax rates would not decrease sharply on cars with a cylinder capacity of less than 2000 cc as initially expected. Under the latest version of the draft law, the cars with the cylinder capacity of 1,500 cc and lower would be taxed 40 percent in luxury tax, or 5 percent lower than now, from July 1, 2016. Meanwhile, the tax rate of 35 percent, or 10 percent lower than currently, would be applied from January 1, 2018. The luxury tax rates would not decrease sharply on cars with a cylinder capacity of less than 2000 cc as initially expected. The cars with a cylinder capacity of 1,500-2,000 cc would be taxed 40 … [Read more...]

Vietnam spent $1 billion to import Chinese cars in 2015

VietNamNet Bridge - According to statistics from the General Department of Customs, Vietnam imported a total of 26,742 CBU cars from China last year, worth $1.04 billion. South Korea ranked second with 26,589 cars, worth nearly $613 million. In terms of number, India is the biggest surprise, ranking third with 25,146 cars and turnover of $128.5 million. Regarding turnover, the 3rd place belonged to Thailand with $440.5 million and 25,136 cars. Compared to 2014, import turnover of CBU cars from most countries doubled in both number and the value. For example, automobile import turnover from China in 2014 was only 13,735 cars and $534.6 million; from South Korea 16,794 cars, $316.5 million; from India 13,299 cars, $64.1 million; from Thailand 14,416 cars, $242.9 million; from Indonesia 1,686 cars and $16.9 million. For Japan and Germany, import turnover in 2015 increased slightly and fell for Canada, with only 92 cars and $2.7 million compared to 176 and $6 million in 2014. The … [Read more...]

Half Vietnam’s auto imports come from India

VietNamNet Bridge – India accounted for almost half the volume of completely built-up (CBU) passenger cars Vietnam imported last year despite lower tariffs on vehicles from ASEAN countries. A Suzuki Ertiga imported from India is on display at an exhibition in HCMC last year. Vietnam imported over 25,000 cars from India last year, up 89% year-on-year – Photo: Quoc Hung According to the General Department of Customs, Vietnam imported 51,460 cars with below nine seats last year, a 63% rise against the previous year. Over 25,000 units came from India, a year-on-year upsurge of 89%. Last year, cars imported from India were slapped with an import tariff of 68% compared to the 50% rate for autos imported from ASEAN countries. However, Indian-made cars remain competitive in terms of price. Domestic auto traders said CBU autos imported from India were mostly compact Hyundai Grand i10 and multi-purpose vehicle Suzuki Ertiga. Though India made up nearly half of auto imports … [Read more...]

Vietnam’s 2015 car sales highest ever

Vietnamese’s demand for cars showed no signs of cooling down as sales numbers broke the record again in 2015. According to a recently released report of Vietnam Automobile Manufacturers’ Association, the total industry sales were 244,914 units, compared to last year’s 157,810. The growth rate is also the highest ever – 55 per cent, continuing on the trend of accelerating growth of the previous years. Special-purpose vehicles saw the highest growth in sales, a whopping 105 per cent. Sales of passenger cars went up by 43 per cent, commercial vehicles by 74 per cent. Sales of completely knocked down (CKD) vehicles went up by 48 per cent while completely built units (CBU) sold 74 per cent better on-year. Among the members of VAMA, Thaco ranked first in terms of market share, with 28.5 per cent, selling 59,518 units. Toyota ranked second, with a 24.1 per cent market share, selling 50,285 units. The two manufacturers retained their rankings of last year, but … [Read more...]

Auto sales up 55% last year

Quoc Hung The figure was far beyond the Vietnam Automobile Manufacturers Association’s projection of 210,000 autos made earlier last year, and higher than 180,000 units in 2009 when Vietnam’s auto sales volume peaked. Last year saw sales improving in all segments, with passenger cars rising by 44% year-on-year to nearly 143,400, commercial vehicles by 74% to more than 89,320, and special-purpose vehicles by 105% to almost 12,200. The better performance of the domestic auto market was also contributed by the sales volume of around 71,900 imported completely built-up (CBU) units, increasing 74% against 2014. Of the number of autos sold last year, VAMA members accounted for over 208,560 units, up 56% against 2014. Toyota Vietnam reported sales of roughly 51,250 units including the imported Lexus car, surging 24.4% over 2014. The company’s figure has amounted to around 357,000 in its 20 years of operation in Vietnam. Honda Vietnam delivered over 8,300 autos to … [Read more...]

Automobile market booms in 2015 amid worries

VietNamNet Bridge - The domestic automobile market witnessed a boom in 2015 with a series of records, but concerns still exist as manufacturers worry they cannot compete with imports after import tariffs are cut. And customers fear the prices will fall as a result of tax policies. Customers fear the prices will fall as a result of tax policies. Under the ATIGA (ASEAN Trade in Goods Agreement), Vietnam will have to cut the import tariff on car imports under the mode of complete built units (CBU) to zero percent by 2018. This means that car prices might go down. However, contrary to all predictions, prices will escalate as a result of changes in the luxury tax law. Under Decree 108 dated October 28, 2015, the luxury tax on car imports will be calculated on importers’ wholesale prices instead of CIF prices + import tariffs. The new tax may cause difficulties for both domestic manufacturers and importers, though in theory, the new policy would impact CBU importers. The … [Read more...]

Auto sales grow 55% in 2015

Vietnam sold a total of 244,914 cars in 2015, an annual increase of 55%, the Vietnam Automobile Manufacturers Association announced on January 11. All automotive categories gained momentum, with the sales of passenger cars, commercial cars, and special-purpose cars expanding 44%, 74% and 105%, respectively. Toyota Vios captured the highest sales among Toyota models in Vietnam in 2015. (Photo: VNA) The number of domestically made vehicles sold last year gained 48% annually, reaching 173,040 cars. Meanwhile, the figure for imported cars soared 74% year on year, with 71,874 units sold. According to the General Statistics Office, the total import value of automobiles and automobile parts was estimated at nearly US$6 billion in 2015, of which the import value of automobiles reached US$3 billion. … [Read more...]

Foreign carmakers cash in on Vietnamese middle-class families’ car-buying rush

Ask about the dream of any Vietnamese middle-class family and you will quickly get a humorous wish list - "one wife, two children, a three-story (town)house, and a four-wheeled car." A set of progressive figures, they are considered to bring luck to Vietnamese people if they become a reality in the same sequence. In reality, many households have already had the first three elements and are rushing to realize the last one, as they are set to pay significantly more money after a new taxation regime on imported automobiles, or completely-built units (CBUs), began to take effect on January 1, 2016. CBUs are automobiles which are thoroughly manufactured, and then are assembled into complete vehicles, outside Vietnam. The new consumption tax rate, once levied on all CBUs, is expected to add 15-30 percent to retail prices, which have already long been amongst the highest in the world due to the inclusion of multiple existing taxes and surcharges. A reader of newswire VnExpress last … [Read more...]

Vietnam’s auto sales grow 60 percent, fastest in Southeast Asia

Around 250,000 cars are sold in Vietnam this year. Photo credit: VietNamNet Vietnam has become the fastest-growing automobile market in Southeast Asia with sales jumping nearly 60 percent this year. A new report from Vietnam Automobile Manufacturers’ Association said nearly 215,520 vehicles were sold in the first 11 months and the number is expected to reach 250,000 at the end of the year. The figure includes SUVs, passenger cars and commercial vehicles. Industry insiders said that although Vietnamese have to pay much more for vehicles than people in other countries due to a range of tariffs and fees, sales have been boosted by easier loans. Truck sales have been supported by strict regulations against overloading. Vietnamese people who can afford it are switching from motorbikes, the traditional means of transport, to cars, they said. The General Statistics Office said the country spent nearly US$6 billion importing cars, trucks and car parts, up 59 percent from last … [Read more...]

Car sales in Vietnam surge ahead of Tet

Car sales in Vietnam have increased in the run-up to the Lunar New Year. Pham Vu, representative of a Honda agent in Hanoi, said that his branch had sold more than 100 cars a month on average in the fourth quarter of this year, compared to 60 previously. Despite stopping sales prices, many companies have still seen high car sales because of higher demand, Minh said. Car sales in Vietnam surge ahead of Tet In the first 11 months of this year, Truong Hai Auto sold 71,000 cars, up 90% against the same period of 2014, putting the company top of the sales nationwide. According to Vietnam Automobile Manufacturers Association, 215,517 cars were sold in Vietnam between January and November, up 57% on-year. The figure is expected to reach a record 220,000 cars by late December. People traditionally buy expensive purchases before the Lunar New Year Pham Vu said, and he also added that some were taking loans to buy cars so they could operate as Uber or Grab Taxi services, he added. Tran … [Read more...]

Finance Ministry wants fewer incentives for auto industry

Lan Nhi A car is seen at a factory of a foreign-invested auto firm in Vietnam. The Ministry of Finance has thrown its weight behind a removal of many incentives for automakers - PHOTO: PHAM LONG In a recent comment on a draft Prime Ministerial decision on regulations and policies for the auto industry development strategy, the ministry suggested phasing out a number of incentives for the industry. The Ministry of Industry and Trade is in charge of drafting the decision, which should have been issued as the Government in July last year approved the auto industry development strategy towards 2025. However, this ministry has been late for the drafting of the decision. The industry ministry said it needs more time and takes caution to draft effective incentives to underpin the development of the auto industry. Commenting on incentives in the draft decision, the finance ministry said if tax incentives are maintained, the State budget would be affected while tax collections are … [Read more...]

Auto firms see sales far higher than forecast

Thu Nguyet and Quoc Hung Cars are on display at an auto exhibition in HCMC. Many auto producers and importers have seen their sales growing beyond expectations this year - PHOTO: QUOC HUNG Thaco sold over 71,000 units in the first 11 months of the year, up 90% year-on-year and well above the 70,300-unit target for all of 2015. That windfall has given Thaco hope to obtain over VND44.3 trillion (around US$2 billion) in consolidated revenue and VND5.83 trillion in after-tax profit this year. Toyota Vietnam reported January-November sales of close to 45,000 units, rising by 24% compared to the same period last year. Meanwhile, Ford Vietnam delivered more than 18,100 cars to customers in the 11-month period, up a staggering 47% year-on-year and the highest yearly sales in its nearly 20 years in Vietnam. Vinastar, the distributor of Mitsubishi cars in Vietnam, sold over 3,400 units in the same period, up an impressive 73% year-on-year, while sales of Mercedes-Benz Vietnam picked … [Read more...]

2015 automobiles sales hit highest ever record

Automobile sales in Vietnam is likely to hit the highest ever record this year of 230,000 as over 215,500 ones had been sold in the first 11 months averaging nearly 20,000 a month. The latest record was made in 2009 when automobile sales reached 180,000 ones. Car buyers at an outlet in HCMC on December 12 (Photo: SGGP) The Vietnam Automobile Manufacturers Association on December 19 reported that 29,706 automobiles of various types had been consumed in November, up 33 percent against the previous month and 86 percent over the same period last year. It is the highest ever monthly sales. Sales of locally assembled cars reduced 7.6 percent to 17,129 while completely built up (CBU) cars increased 95 percent to hit 12,577. For the last 11 months, the former still held major part with 184,787 ones having been sold, up 50 percent. The later hit 30,730 cars, up 78 percent over the same period last year. Of these, tourist automobiles moved up 45 percent to near126,600, commercial type … [Read more...]

A new race in the lubricant market

VietNamNet Bridge - With an annual growth rate of 7-8 percent per annum, the Vietnamese lubricant market has attracted foreign brands, especially as Vietnam has now signed many free trade agreements (FTAs). Five years after leaving, the US brand Exxonmobil returned to the country in mid-November 2015, introducing its strategic distributors in Vietnam. Three companies have been appointed as Mobil’s distributors, including TAT Petroleum Viet Nam which will exploit the market from the south to the north of the central region, PAN which will cover the northern market, and Xich Dao which will provide lubricant products to the navigation sector. In this comeback, Exxon Mobile brings many kinds of products, from lubricant for motorbikes and trucks to ones for industries. The products are imported from Mobil’s factories in South Korea and Singapore. Mobil’s Yasser Al-Azzawi said Mobil returned because Vietnam is still one of the fastest growing markets in the … [Read more...]

Car prices blamed for sluggish automobile industry growth

Automobiles which are priced higher in Viet Nam than in regional countries is the reason for the sluggish development of the automobile industry, experts say. The number of imported cars in November was equal to the previous month, but the volume of sold imported cars had nearly doubled.-Photo news.zing.vn The information was discussed by participants at the seminar on the real situation of the automobile industry and spare parts in Viet Nam, held in Ha Noi on December 8. Nguyen Thi Thuy Xuan, an official from the Trade and Industry Ministry's Institute for Industry Policy and Strategy, said the price of cars in Viet Nam was more than in other countries including Indonesia and Thailand. She cited some examples of vehicles in the middle segment. The prices of Toyota Vios and Toyota Innova were VND570 million and nearly VND800 million in Viet Nam, while in Indonesia they were VND265 million and VND282 million, respectively. Similarly, Honda CRV 2.0AT in Viet Nam was more than VND1 … [Read more...]

Auto market promising in long term: seminar

Tu Hoang New cars are on display at a recent auto exhibition in HCMC. Experts said Vietnam will become a promising market for carmakers in the long term given its big population and better traffic infrastructure - PHOTO: QUOC HUNG Dao Phan Long, vice chairman of the Vietnam Association of Mechanical Industry (VAMI), told the seminar that more expressways have been opened to traffic, including the new Hanoi-Haiphong Expressway. Vietnam has a population of over 90 million consumers. Vietnam’s auto market remains far smaller than other regional markets. Pham Tuan Anh of Toyota Vietnam however said at the seminar held by the Central Institute for Economic Management (CIEM) that the domestic market is holding long-term growth potential. As forecast by Toyota, the auto market will grow strongly after 2020 with more than 400,000 autos sold a year when per capita income reaches US$3,000. The figure is double that of 2010. The local market could be bigger than … [Read more...]