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Vietnam Car Manufacturers Sale Surged 180%
Jun 02, 2008

The sales recorded by the automobile industry in Vietnam got tripled from corresponding period last year though the country’s economy slowed down.

According to the Vietnam Automobile Manufacturers Association (VAMA), the automobile sales in the country tripled in the initial three months of this year against the corresponding period last year despite the country’s economy slow down, as reported by REUTERS.

VAMA also revealed that the sales recorded by 16 car manufacturers surged 180% and reached 34,095 units during the period January-March 2008. Only in March, the sale figures grew almost three times of what was recorded in the same month last year (at 13,091 units). Moreover, the country’s import of Completely Build Units (CBUs) in 2007 was around 28,000, 224% high from a year before.

According to experts, this upsurge in the first quarter of 2008 was accredited to hike in wages of Vietnamese and slump in car prices. Besides, people of Vietnam are changing their lifestyle to look more prosper and recent years have witnessed significant increase in per head income, hence the impact is bound to effect the automobile industry as people are switching from motorcycles to cars.

Also, 80 Million Vietnamese employed in the farm sector (which is creating favorable employment conditions) are backing car industry. People engaged in the farm sector need small cars for transportation and other activities.

Moreover, in last few years, the risk rating of car industry has improved following the launch of several giant infrastructure development and modernizing projects by the government such as improvement in transportation that created the demand of commercial vehicles, raising the sales of commercial vehicle segment.

According to Ford Motor Company, the economic slowdown could impact the growth of car industry in the later half of this year as the sales are coming despite slowdown in economic growth in the first quarter.

According to a Research Analyst at RNCOS, “Vietnam’s car industry is riding on growth in the first quarter of 2008 as business and economic conditions are conducive for growth. Nevertheless, economists are expecting slowdown in the economy that may affect the car sales. If car dealers and makers offer discounts to customers, the impact could be offset.”

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