Wednesday, January 19 2022

VietNamNews

Auto market to continue growing: experts

Update: November, 20/2021 - 08:03

 

In the first 10 months of this year, the total auto sales reached 218,734, up 3 per cent on last year. — Photo congthuong.vn

HÀ NỘI — The domestic auto market is expected to continue growing in the remaining months of this year, according to experts, after expanding by up to 120 per cent in October.

The Việt Nam Automobile Manufacturers’ Association (VAMA) has said this followed the growth of car sales at 52 per cent in September. This forecast bright prospect for the Vietnamese car market's sales in the last months of the year and close 2021 with double-digit growth.

VAMA said that vehicle sales among its members reached 29,797 last month. Of the total sales, 19,865 were for passenger cars, up 138 per cent month on month; 9,492 were commercial vehicles, up 94 per cent; and 404 were specialised vehicles, up 45 per cent.

In terms of origin, the sales of domestically assembled and imported cars hit 15,344 units and 14,453 units respectively, increasing 110 per cent and 132 per cent compared to September.

The association attributed the impressive rise to COVID-19 prevention and control measures rolled out by the government.

In the first 10 months of this year, the total sales among VAMA members reached 218,734 vehicles of all types, up 3 per cent from the corresponding time last year.

Experts said the January-October sales did not fully reflect the entire Vietnamese car market because brands like Audi, Jaguar Land Rover, Mercedes-Benz, Subaru, Volkswagen, and Volvo did not disclose their figures.

Looking at the sales of automobile brands in Việt Nam last month, Hyundai secured first place. They were followed by Toyota, Kia, Ford, VinFast, Mazda and Honda.

Figures from TC Motor - the representative of the Hyundai Thanh Cong brand showed that last month, it sold 8,855 vehicles, bringing the total in the first 10 months of 2021 to 53,182 vehicles of all kinds.

VinFast also sold 3,320 vehicles, bringing the total sales of the 10 month period to 28,847 vehicles. Accordingly, the total car sales from VAMA, TC Motor and VinFast in October was 41,972 vehicles. The total number of cars sold in the first 10 months of 2021 was 300,763 vehicles of all kinds.

According to the VAMA’s representative, there were two reasons for the increase in vehicle sales, which was the reopening of all auto dealers nationwide and the rapid recovery of imported CBU cars, an increase of 132 per cent compared to the previous month. In addition, the information from the Government for the application of a 50 per cent reduction in registration fees, applied from November 15 also attributed to the increase. The reduction would not only domestically-assembled cars but aloso imported models, making popular and luxury cars are not out of the "wave" of discounts.

Experts said it is expected that from mid-November 2021 onward, the consumption volume of domestically manufactured and assembled vehicles will have many changes in a upward trend thank to the fee reduction. This is the second time the Ministry of Finance has made this proposal. Earlier, the Government issued and applied a similar policy from the second half of 2020, with the aim of supporting the domestic auto industry to recover after being severely affected by the COVID-19 pandemic.

According to VAMA, this is a necessary policy to help stimulate consumption and support production and business enterprises. The 50 per cent reduction in registration fee collection for domestically assembled cars will bring many benefits to the market, stimulating demand.

Việt Nam, Czech Republic boost co-operation in auto manufacturing

Vietnamese Deputy Minister of Industry and Trade Đỗ Thắng Hải this week hosted a reception in Hà Nội for Ambassador of the Czech Republic Vítězslav Grepl and a delegation from Skoda Auto, a carmaker of the Czech Republic. They came together to seek partners to build an automobile factory in the northern province of Quảng Ninh.

Hải said the exchange of high-level delegations in recent years has created a driving force for bilateral economic, trade and investment ties between the two countries.

He added that Việt Nam’s auto industry had grown rapidly over the past three years and welcomed Skoda Auto's plan to invest in Việt Nam. The presence of Skoda vehicles in Việt Nam would help diversify the domestic auto market.

Grepl expressed hope that auto manufacturing would become a focus of bilateral cooperation in the future.

Skoda Auto was established in 1985 in the Czech Republic and is part of Volkswagen Group.

The company planned to build an auto factory in Quảng Ninh and begin exporting automobiles by 2023, said Ondrej Cerny, a representative of Skoda Auto, adding that he hoped the Vietnamese Government, ministries and agencies would offer all possible support for Skoda Auto.

Hải said Việt Nam signed 14 free trade agreements with countries in and outside the region, especially commitments related to the auto industry in ASEAN, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, and the EU - Việt Nam Free Trade Agreement. Therefore, he suggested the Czech Republic side thoroughly consider Việt Nam’s international commitments as well as domestic laws to carry out investment.

As of October 2021, the Czech Republic has invested in 38 projects worth US$91.23 million, ranking 49th out of 140 countries and territories investing in Việt Nam. — VNS

Send Us Your Comments:

See also: