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Vietnam to Produce Record Number of Cars in 2007
Nov 27, 2007

The Vietnamese automobile market is all set to make a record by manufacturing nearly 80,000 units of cars in 2007. Also, the government’s decision to reduce import taxes to 80% will fuel the sales.

The Ministry of Industry and Trade informed that by the end of September 2007, the domestic manufacturers in Vietnam have churned out 61,000 cars. It comprises 29,000 units manufactured by enterprises owned domestically and 32,000 units made by JVs. By the end of 2007, approximately 80,000 cars are anticipated to be produced setting a new record, reported Vietnam Net.

Despite 83 Million of Vietnam’s population working in the small farms, the sale of the luxury cars has also experienced a considerable growth. Also, the domestic auto market is expected to witness a surge towards the end of 2007 on account of the tax reduction on imports and the rise in number of clients.

With the effect of the news, the car sales are warming up given the reduction in the sale prices by the manufacturers. In order to further push the car sales in the domestic market, new products have been launched by nearly all the automobile manufacturers in Vietnam. Besides, to benefit the customers, the Vietnamese businesses have increased focus towards the automobile exhibitions and marketing promotions by offering lower prices and financial assistance.

According to the trade ministry of Vietnam, the joint venture companies have registered significant growth. The output of the joint venture companies has shown a constant increase from 50,636 units in 2003, 54,000 units in 2004, and 67,000 units in 2005, to 60,000 units in 2006. Approximately 270,000 units of different classes have been manufactured by the joint ventures during 1990-2006 paying $1.5 Billion for the state budget, while producing 50,000 jobs as well.

Vietnam automobile industry is likely to see an incredible growth with its motto to improve the auto auxiliary industry. The Ministry of Industry anticipates the demand for cars in Vietnam to rise sharply up to 113,000 by 2010, although the registered capacity of the domestic automobile manufacturers is forecasted to be around 120,000 car units per annum.

In a research report published by RNCOS, “Vietnam Automobile Industry Forecast (2007-2010)”, in the south-east Asia, Vietnam is fast emerging as a lucrative market for the automobile companies for both sales and production. Moreover, the government’s decision of cutting the import taxes to 80% in 2007 and reduced tax on automotive components would provide a significant boost to the car production level in 2007.

Related Market Research Reports:
Vietnam Automobile Industry Forecast (2007-2010)
Czech Republic Automobile Sector
Brazil Automobile Industry till 2010