Ideas That Generate Results
Vietnam Automobile Industry Forecast (2007-2010)
The RNCOS report “Vietnam Automobile Industry Forecast (2007-2010)” highlights the present scenario of Vietnam automobile in context of the South-East Asia automobile industry. The Vietnam automobile industry’s production, sales, and import statistics have been covered to figure out the past and future trends, supplemented with forecasting of overall automobiles sales by segment, where motorcycle segment is taken separately due to its large size. The report has rationally analyzed the key driving factors, opportunities, and challenges for the Vietnam automobile industry.
Vietnam Automobile Industry
Worldwide automobile industry is growing at a rapid pace as many countries are going through the phase of economic development. And the same scenario is applicable for Vietnam too in South-East Asia.
Vietnam automobile industry was loosing track till 2005 but it recovered in the year 2006 and posted a good growth rate in South-East Asian countries. Changing lifestyle and rising spending in automobile-related parts in Vietnam has propelled the growth of automobile industry in the country. Apart from that, Vietnam’s entry to WTO has made the conditions favorable for foreign manufactures as the Vietnamese government has reduced the auto-component import tax in 2006. Though Vietnam was more of a motorcycle-oriented country in past years, its passenger car segment witnessed a good growth after Vietnam joined WTO. Rising income and flexible bank loan structure has incited the growth in passenger car segment.
Increased disposable income has increased the purchasing power of Vietnamese and flexible car loan is considered to be a good supporter of passenger car sales in future (2007-2010). Till 2006, spending on buses, coaches, and taxis had increased and it is showing high demand for road transportation. In this scenario, cost effective and low cost passenger cars may see a healthy future ahead.
- Sports Utility Vehicles (SUVs) will grow at a faster rate than Multi Utility Vehicles (MUVs) in terms of sales during the forecasted period (2007-2010). However, passenger car sales will lead the fleet through 2010.
- Motorcycles in Vietnam dominate the overall mode of travel, but due to decreasing number of young people, growth rate of motorcycle sales is likely to decline during 2015 to 2020.
- Number of motorcycles in urban Vietnam will see a declination during 2015-2020, whereas rural areas will witness a growth in number of motorcycles during 2010-2020.
- Biofuel vehicles are likely to see a good opportunity with the rising concern of environment in Vietnam.
Key Issues and Facts Analyzed
- What was the automobile sales trend in past in Vietnam automobile industry and how will the industry march ahead in future?
- Which factors are thrusting the Vietnam automobile industry?
- What are the opportunities and challenges for the automobile manufacturers in Vietnam?
Research Methodology Used
The information has been taken from authentic and reliable sources like books, newspapers, trade journals, and white papers, industry portals, government agencies, trade associations, monitoring industry news and developments, and access to more than 3000 paid databases.
Methods like historical trend analysis, linear regression analysis using software tools, judgmental forecasting, and cause and effect analysis have been used in the report for rational analysis.