|Cutomers view an imported Mercedes S-Class car at a showroom of Mercedes Benz Vietnam. The country's auto market stood out in the global car market as the report for November indicated sales growth through 20 consecutive months. — Photo vnexpress.net
HA NOI (VNS) — Viet Nam's auto market stood out in the global car market as the report for November indicated sales growth through 20 consecutive months while its competitors posted slow progress rates.
According to the Viet Nam Automobile Manufacturers Association (VAMA), the country's 18 leading vehicle manufacturers sold a combined total of 15,954 units, indicating a 57 per cent year-on-year increase.
November's figure could boost the total car sales of Viet Nam for 2014 to reach 150,000 units, up 36 per cent year on year, the highest so far in the country's history, VAMA said.
Meanwhile, growth rates in sales of cars in the world's largest car markets, such as China and the US, have been poor.
While China's car sales growth rate fell to its lowest levels in almost two years in November, rising only 4.7 per cent from a year earlier to 1.8 million cars, market watchers forecast that the US car sales for 2014 will be unable to reach the peak of 17 million units.
In addition, most car markets in the neighbouring countries like Thailand, Indonesia and Malaysia witnessed plummeting sales in the first 11 months of the year.
Major reasons behind low sales in those countries were slow economy and a weak consumer confidence.
"Viet Nam car sales growth rate is heading in the opposite direction, compared with other markets," said Do Ngoc Quang, a car analyst at www.caronline.com.vn.
"Sales grew in November due to an improvement in the overall public sentiment and a decrease in the general cost of ownership, brought about by lowered fuel prices. However, the car sales rising at 57 per cent came as a big surprise," he disclosed.
However, Luong Dinh Hung, general director of the ASC Group and a prominent car dealer in Viet Nam, said there are other reasons that contributed to the historic rise.
He cited a stronger economy, improved consumer confidence, higher wages and lower unemployment as the possible reasons.
According to the General Statistics Office, the gross domestic product rose 6.19 per cent in the third quarter from a year earlier, quickening from a revised 5.42 per cent gain reported in June.
Meanwhile, Viet Nam's Consumer Confidence Index jumped three points to 102, the highest level since late 2010, according to the assessment of Q3, 2014 by Nielsen Global Survey of Consumer Confidence and Spending Intentions.
In addition, the Ministry of Labour, War Invalids and Social Affairs disclosed that the 2014 unemployment rate in Viet Nam was estimated to be 1.84 per cent, one of the lowest in the world.
"This sustained demand for new vehicles has been building for years during the recession, and it should continue unless a major shift in economic stability occurs," Hung added.
Car imports also shared in the historic figure as the total car import value reached US$1.23 billion, a 100.7-per cent year-on-year increase, from January to November this year.
This means Viet Nam is estimated to reach $1.5 billion worth of auto imports for the entire 2014, which will also be the highest figure to date.
Approximately two million cars and 37 million motorcycles are on the roads of Viet Nam, which has a population of more than 90 million. — VNS