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...]

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...]

Over 16,000 vehicles sold in March

Photo:VNA Vietnam's vehicle manufacturers sold a combined 16,399 units in March, up 62 percent from the same period last year, according to the Vietnam Automobile Manufacturers Association (VAMA). Of the figure, 9,416 were cars, representing a 6 percent month-on-month increase, while trucks made up 6,983 units, 104 percent higher than the sales recorded in February. Thaco, a domestic car manufacturer, retained its market leadership with 5,973 sales, or a 101 percent increase from last month and a 79 percent increase from March 2014. Japanese manufacturer Toyota came in second with 2,231 sales, followed by US manufacturer Ford with 1,400 sales – a 51 percent surge from February. With 529 sold vehicles in March, GM Vietnam superseded Japan’s Honda to be among the top four highest auto sales in in Vietnam. Statistics from VAMA also showed 12,877 domestically-assembled vehicles in March, up 63 percent from the previous month. Correspondingly, the number of imported … [Read more...]

High taxes hinder growth of auto industry

Vietnam's car and part manufacturers say the newly-approved automobile development strategy won't succeed unless the government offers more tax and credit incentives to local car producers which are struggling amid fierce competition from imported products. According to the strategy approved by Prime Minister Nguyen Tan Dung in July, local automobile firms will produce 227,500 cars by 2020, 237,900 by 2025 and 1.5 million by 2035. Though the strategy is considered conservative given that Vietnam’s 2035 target is smaller than Thailand's current output, few believe Vietnam will achieve it. Shortcomings in tax policy remain a big obstacle to market development, car and part manufacturers said at a recent meeting organized by the Ministry of Industry and Trade on the nation's automotive strategy. Bui Ngoc Huyen, director of auto maker Vinaxuki, said the high taxes imposed on domestically-made cars make them too expensive for locals to afford. In Vietnam, cars are subject to … [Read more...]

TMV undecided on local assembly

Toyota Motor Vietnam (TMV) is wavering between continuing to assemble and manufacture cars and importing completed cars when the 2018 import tax on cars from ASEAN countries drops to zero. Workers treat a Toyota car's chasis as a part of its Express Body and Paint (EBP) service.- VNA/VNS Photo The Anh Speaking at a press conference held in Hanoi last week, General Director of TMV Yoshihisa Maruta said his company had not yet decided on this issue. The corporation must make a decision this year because it takes three years of preparation to manufacture these cars. Maruta, who is also Chairman of the Vietnam Automobile Manufacturers' Association (VAMA), explained that the imported complete built up units would be cheaper than the imported complete knock down units. Therefore, the drop in the import tax to zero per cent for ASEAN countries by 2018 was a major issue. TMV as well as the VAMA members all had to decide whether they would continue to assemble cars locally or import them … [Read more...]

Bikers race to upgrade as auto sales explode

Hoang Hai turned his back on a Vietnamese business that was headed for bankruptcy and became a driving instructor instead. Now he is riding a wave of interest in car ownership as the country's trend-setting middle class swaps two wheels for four. The Hanoi driving school where Hai works is inundated with people eager to get behind the wheel. About 300 have applied each month so far this year, double the rate in 2014. Hai, 45, says at least eight out of 10 learners don't own a car, but they all want one. "As soon as there is an intention to buy a car, they'll take a driving lesson," he said. Famous for its swarms of scooters, Vietnam is seeing auto sales surge amid the rapid expansion of a young, style-conscious middle class after 15 straight years of economic growth of over 5%. While major regional car markets Indonesia and Thailand saw annual declines in auto sales last year, Vietnam's leapt 43%, Vietnam Automobile Manufacturers Association (VAMA) data shows. Toyota, … [Read more...]

Vietnam’s bikers race to upgrade as auto sales explode

Hoang Hai turned his back on a Vietnamese business that was headed for bankruptcy and became a driving instructor instead. Now he is riding a wave of interest in car ownership as the country's trend-setting middle class swaps two wheels for four. The Hanoi driving school where Hai works is inundated with people eager to get behind the wheel. About 300 have applied each month so far this year, double the rate in 2014. Hai, 45, says at least eight out of 10 learners don't own a car, but they all want one. "As soon as there is an intention to buy a car, they'll take a driving lesson," he said. Famous for its swarms of scooters, Vietnam is seeing auto sales surge amid the rapid expansion of a young, style-conscious middle class after 15 straight years of economic growth of over 5 percent. While major regional car markets Indonesia and Thailand saw annual declines in auto sales last year, Vietnam's leapt 43 percent, Vietnam Automobile Manufacturers Association (VAMA) data shows. Toyota, … [Read more...]

Vietnam automotive industry to grow fastest in ASEAN: Thai industry insider

Vietnam’s automotive industry will enjoy the fastest growth in Southeast Asia in the next 20 years because of rising demand and help from the government, Vichai Jirathiyut, president of the Thailand Automotive Institute, said at a recent meeting in Ho Chi Minh City. The Vietnamese automotive industry is forecast to churn out 220,000 units annually by 2020 and 1.5 million units by 2035 given strong support from the central government, Vichai at the meeting on Thursday last week. The aging 67-million-strong Thai market buys around 880,000 units per year, so the 90-million-plus market of Vietnam with a younger age group will have higher demand for personal vehicles in the future, he said. Official figures from the Vietnam Automobile Manufacturers' Association (VAMA) showed that automotive sales in Vietnam reached 157,810 vehicles in 2014, up 43 percent compared to 2013. Last year, sales of personal cars increased by 43 percent year on year, topping 100,000 units, while … [Read more...]

Toyota could cease making cars in Vietnam on coming tax cut

The Vietnamese unit of the world’s largest carmaker Toyota is considering putting an end on production and switch to import to enjoy the preferential tax treatment a trade pact will offer in the next three years. Toyota Motor Vietnam could cease making cars in Vietnam and import from other ASEAN countries to enjoy the zero import duty in 2018, President Yoshihisa Maruta said at a meeting to announce the company’s operation plans for 2015 on April 2. Toyota Motor Vietnam currently has to import most of the spare parts for its production in the Southeast Asian country, and there will soon come the day when importing a complete car from Thailand is cheaper than assemble it in Vietnam, Maruta said. The Japanese president, who is also chairman of the Vietnam Automobile Manufacturers' Association (VAMA), said the year 2018 will be a big issue for the carmaking industry. Passenger cars with fewer than 24 seats, 40 percent of whose parts are manufactured by ASEAN countries, are … [Read more...]

Toyota could cease making cars in Vietnam on coming tax cut: President

The Vietnamese unit of the world’s largest carmaker Toyota is considering putting an end on production and switch to import to enjoy the preferential tax treatment a trade pact will offer in the next three years. Toyota Motor Vietnam could cease making cars in Vietnam and import from other ASEAN countries to enjoy the zero import duty in 2018, President Yoshihisa Maruta said at a meeting to announce the company’s operation plans for 2015 on Thursday. Toyota Motor Vietnam currently has to import most of the spare parts for its production in the Southeast Asian country, and there will soon come the day when importing a complete car from Thailand is cheaper than assemble it in Vietnam, Maruta said. The Japanese president, who is also chairman of the Vietnam Automobile Manufacturers' Association (VAMA), said the year 2018 will be a big issue for the carmaking industry. Passenger cars with fewer than 24 seats, 40 percent of whose parts are manufactured by ASEAN … [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...]