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...]

April auto sales surge 42% y-o-y

Quoc Hung A new Audi car model is introduced to customers. Car trading firms have stepped up imports of luxury autos in recent months to avoid higher special consumption tax, which goes into force from July 1 - PHOTO: QUOC HUNG A report of the Vietnam Automobile Manufacturers Association (VAMA) indicated auto sales reached over 25,720 units last month, up 4% over the previous month and 42% year-on-year. Last month also witnessed the highest monthly auto sales this year. VAMA said 13,743 passenger and 9,663 commercial vehicles were sold in April, up 3.7% and 5% month-on-month respectively. However, sales of special-purpose vehicles were down 1.3% month-on-month to 2,319 units. In all, more than 85,400 autos were delivered to customers in the first four months, up a staggering 28% over the same period a year earlier. Of the total, passenger cars rose by 15% to 47,530 units, commercial vehicles by 46% to 31,668 units and special-purpose autos by 65% to over 6,210 units. In … [Read more...]

Car sales record 42 percent annual surge in April

Car sales in Vietnam were posted at 25,725 units in April, soaring by 42 percent from a year earlier, according to the Vietnam Automobile Manufacturers’ Association (VAMA). The sold volume comprises automobiles produced by VAMA members and imported by non-VAMA companies. An automobile show They include 13,743 passenger cars (up 3.7 percent from March), 9,663 commercial vehicles (up 5 percent), and 2,319 special-purpose vehicles (up 1.3 percent). While 19,500 sold units were assembled domestically, a 2.5 percent decrease from the previous month, 6,225 others were completely built units (CBU) imported from other countries, rising by 29 percent month on month. Regarding the sharp increase in the CBU sales, industry insiders said the special consumption tax rates on some automobiles with engine capacity of over 2,500 cubic centimeters will be raised substantially on July 1. Therefore, local people made use of the pre-July period to purchase imported CBUs to avoid higher … [Read more...]

Euro automakers get in gear for EU-Vietnam FTA

European automakers are welcoming the European Union-Vietnam Free Trade Agreement’s slashed tariffs, expected to take effect in early 2018, as a key step towards boosting imports to and investment in Vietnam’s rapidly-growing auto market. Bruno Angelet, Ambassador and Head of the Delegation of the European Union to Vietnam, told VIR that "the European Union-Vietnam Free Trade Agreement (EVFTA) will help EU automakers expand their auto exports and investment in Vietnam." "The EVFTA will offer slashed import tariffs for automobiles, so auto prices will be far cheaper in Vietnam," Angelet added. Under the EVFTA, Vietnam will eliminate duties on imports of EU cars with small-and medium-sized engines- which now face tariffs of 70-78%-over 10 years following the deal’s coming into force. Vietnamese duties on trucks will also take about ten years to phase out. These tariffs range from 65% on models under five tonnes to 10% for trucks weighing 24-45 tonnes. For cars … [Read more...]

Vietnam’s car sales fly through the roof in first quarter

Vietnam’s automobile sales reached 56,264 units in the first quarter of 2016, up 38 per cent on-year, according to the Vietnam Automobile Manufacturers Association (VAMA)’s statistics published on April 8. Notably, in the first three months of 2016, the number of passenger automobiles sold increased by 28 per cent to 32,320 units, while commercial automobiles shot up 52 per cent to 20,625 units, and special-purpose automobiles climbed 56 per cent to 3,319 units against the first quarter of 2015. Thaco became the best-selling brand in the first quarter of 2016, with a total number of 23,485 units, up 60 per cent on-year, simultaneously making up 41.7 per cent of Vietnam’s automobile sales. The sales of imported automobiles stood at 13,068 units, equalling 66.42 per cent of the total number of imported automobiles in Vietnam In the first quarter of 2016, Vietnam imported over 19,700 automobiles, decreasing 16.8 per cent on-year. With the exception of trucks, the … [Read more...]

Local car-maker Thaco to up production

The Truong Hai Automobile Joint-Stock Company (Thaco) will begin construction on the expansion of the Truong Hai-Chu Lai Mechanical Automobile Industrial Zone with an investment of 794 billion VND (35.3 million USD) in central Quang Nam Province. The ground-breaking ceremony of the expansion project will take place in the zone on April 23, an official from the Chu Lai Open Economic Zone Authority (EZA) confirmed to Vietnam News. The largest local car-maker, Thaco, has been negotiating with Mazda for mass production of its most popular cars in Vietnam He said the expansion project, which covers 210ha of land, would include a new Mazda plant and other supportive industries for several car models. Thaco, the country's largest local car-maker, has been negotiating with Mazda for mass production of its most popular cars in Vietnam, with an anticipated capacity of 100,000 Mazda cars per year, according to the EZA. EZA said the expansion project in the Tam Hiep Industrial Zone would … [Read more...]

Thailand tops China as Vietnam’s biggest car import market

For the first time ever Vietnam has imported more cars from Thailand than China in the first quarter of this year, thanks to preferential tax policies among ASEAN countries, the latest customs data show. Thailand has beaten China to become Vietnam’s largest source of imported cars, with 7,800 vehicles shipped in the Jan-Mar period, an enormous 64.5 percent increase on the same period last year, according to the General Department of Vietnam Customs. By comparison, imports from China reached 2,260 units, a sharp decline of 58 percent from Q1/2015. Shipment of South Korean cars also dropped by 41 percent from the first quarter of last year to 3,560 units, according to the customs department. According to the Vietnamese Ministry of Finance, tax incentives on car imports among ASEAN countries has played a crucial role in the increase of car imports from Thailand. Prices of Thai-imported vehicles have also become much more reasonable than their Chinese and South Korean … [Read more...]

Vietnam auto sales rebound after consecutive drops

An undated photo of an automobile show in Vietnam. Photo: Phong Tran After falling for two months, auto sales staged a strong recovery last month with a total of 24,802 units sold, more than twice the February figure. Locally assembled cars accounted for more than 80 percent of the sales, news website VnExpress said Saturday, citing figures from the Vietnam Automobile Manufacturers Association. Truong Hai Auto Corporation held 44.7 percent of the market share, followed by the local units of Toyota and US carmaker Ford. Nearly 60,000 units have been sold in the first three months, up 23 percent from a year ago. Sales dropped 49.4 percent to 11,718 units in February, the lowest in a year. In January there had been a month-on-month decline of more than 21 percent. Many industry insiders have been quoted as saying in the media that the sharp fall in February was because the country was celebrating the Lunar New Year. A new tax rule that took effect on January 1 forcing auto … [Read more...]

Volvo centres to open in Ho Chi Minh City

Volvo Cars of Sweden will open two Volvo 4S centres in Ho Chi Minh City in the third quarter of this year, the group announced on March 22. A signing ceremony between Volvo Cars and Euro Auto JSC. According to the automobile manufacturer, the two centres will be located in HCM City ’s District 7 and Hanoi ’s Long Bien district and will be equipped with the most cutting-edge machines, equipment and technologies provided by Volvo. Euro Auto JSC, which has been selected as Volvo’s authorised importer and distributor in Vietnam , will conduct marketing and selling activities as well as other services relating to the Volvo-branded cars in the country. Currently, the company has 27 auto 3S agents across the country. Last year, it sold nearly 19,000 cars, equivalent to 8.5 percent of the market, according to the Vietnam Automobile Manufacturers’ Association. Jari Kohonen, Volvo’s Vice President for Asia-Pacific, said the group’s new model of SUV … [Read more...]

New taxes unlikely to dampen growth in Vietnam’s auto market

An automobile factory in the central province of Quang Nam. Photo: Dinh Muoi Nguyen Hoang Ha decided to make his luxury dream come true when he ordered a car at a showroom on Hanoi’s Tran Khat Chan street. For him, not upgrading was unthinkable, despite higher prices. "Car prices have increased due to many reasons like higher foreign exchange rates, import costs and taxes. They have never fallen," Ha said, inspecting a new Lexus RX 350. "So I could not wait for lower prices to buy it." With the rapid expansion of a young, style-conscious middle class after many years of economic growth of over 5 percent, demand for automobiles has surged. The recent jump in prices of imported cars due to a new methodology for calculating special consumption tax is unlikely to put the brakes on the automobile market. From January 1 the tax is calculated on an imported car’s retail price and no longer on the cost, insurance freight (CIF) price before the addition of duties and … [Read more...]

Vietnam to become one of Korea’s four crucial export markets

The Republic of Korea considers Vietnam one of its four strategic export markets, along with China, Iran, and Brazil. The blossoming relationship is cornerstone to Korea’s export success, resulting from opportunities and advantages from the Vietnam-Korea Free Trade Agreement (VKFTA), according to the Korea Trade-Investment Promotion Agency (Kotra). Accordingly, Korea will focus on connecting local manufacturers with foreign buyers in general and Vietnam in particular during the first half of this year. According to Han Kyung Joon, deputy director of Kotra Hanoi, the VKFTA, through the provision of ample tax incentives, is expected to help bilateral trade turnover increase by a significant margin. "Besides, signing other FTAs such as the Europe-Vietnam Free Trade Agreement (EVFTA) and the Trans-Pacific Partnership, will help Vietnam achieve deeper integration into the global economy and make Vietnam become the world’s manufacturing and export hub, opening numerous … [Read more...]

Ford reports record sales in February

Ford’s overall retail sales jump 65 per cent on year to 1,524 units in February, even when the month was shortened due to the Tet Holiday. "Our record February sales was led by our segment-leading global Ford vehicles – particularly the Ranger, Transit and EcoSport – which are continuing to widen their appeal with customers across the country," said Pham Van Dung, managing director of Ford Vietnam. The segment-defining Ranger led Vietnam’s pickup truck segment for the 12 consecutive months by delivering February sales that soared 247 per cent to 660 units. Year-to-date sales of the Ranger have nearly tripled from a year ago to 1,963 units. The Transit maintained its leadership of the commercial van segment for the 41 consecutive months with sales increasing 110 per cent year-over-year to 577 units. Transit sales year-to-date have increased 80 per cent to 1,160 units as business owners and operators across a range of industries continue to appreciate the … [Read more...]

More Vietnamese become CEOs in foreign conglomerates

VietNamNet Bridge - The positions of CEOs of many multinational groups are being held by Vietnamese as the business employ strategies to localize staff. In July 2015, the US-based Ford announced it had appointed Pham Van Dung, a Vietnamese, to the post of CEO of Ford Vietnam. The predecessor of Ford Vietnam, Jesus Metelo Arias, left Vietnam for Shanghai, where he works as Ford Asia Pacific marketing and service director Prior to the appointment, Dung worked as finance director for the automobile manufacturer. He began working there in 1998 as an accountant. He has a bachelor’s degree in economics and master’s degrees from the Vietnam Trade University and Swinburne University, Australia, respectively. The positions of CEOs of many multinational groups are being held by Vietnamese as the business employ strategies to localize staff. Since taking office, Dung has helped Ford Vietnam gain big achievements: in September 2015, Ford Vietnam, for the first time in his … [Read more...]

Mercedes-Benz to invest extra $12 million in Vietnam: report

Mercedes-Benz Vietnam introduces the S65 AMG model in Ho Chi Minh City on February 20, 2016. Photo credit: Quoc Hung/Saigon Times Online Mercedes-Benz Vietnam plans to invest an additional 11 million euros (US$12.2 million) in its local operations this year, Saigon Times Online reported Sunday. The investment will be used to develop two new assembly lines, the news website said. It quoted Dirk Adelmann, sales director of Mercedes-Benz Vietnam, as saying that the firm moved 3,600 units in 2015, its 20th year in Vietnam. With a 50 percent growth from 2014, Vietnam became one of five Mercedes-Benz’s fastest growing markets in the world, he said. The company plans to launch 23 new models, including locally assembled ones and imported ones, in the country this year. Vietnam's automobile sales posted a record growth of 55 percent last year and are expected to grow at a lower rate this year. The Vietnam Automobile Manufacturers' Association told local media early this month that … [Read more...]

Vietnam’s auto market forecast to see another good year

An automobile factory in the central province of Quang Nam. Photo: Dinh Muoi After posting a record growth of 55 percent last year, Vietnam's automobile sales will continue to grow strong this year, albeit at a lower rate, news website VnMedia reported on Tuesday, citing local businesses. Executives of major producers and importers such as Ford Vietnam, GM Vietnam and Truong Hai Auto Corporation expected the industry's sales will grow around 30 percent, saying Vietnam's economy will continue to grow strong, boosting the local demand, according to the website. Yoshihisa Maruta, chairman of Vietnam Automobile Manufacturers' Association, on the other hand, said its members expected a year-on-year rise of 10 percent. Bui Kim Pha, deputy CEO of Truong Hai Auto Corporation, said in the news website that the auto market is stabilizing, so its growth will not be as high as last year when it saw a six-year high rise in sales to nearly 245,000 units. A boom in auto imports from ASEAN as an … [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...]