VietNamNet Bridge - As some South Asian markets have seen considerable decline, foreign investors are heading for other ASEAN markets, including Vietnam and the Philippines.

VietNamNet Bridge – Vietnam’s automobile industry, as part of its development strategy, is focusing on manufacturing trucks.

VietNamNet Bridge – Automobile manufacturers said a new proposal by the HCMC Department of Transport to restrict private car ownership goes against the Government’s strategy to develop the automobile industry into a strong one.

While Vietnamese ministries argue about policies on the development of the automobile industry, many auto manufacturers that once intended to invest in Vietnam have changed their mind and left the country.

VietNamNet Bridge – Though Vietnam still has cheap labor, its support industry remains undeveloped as it lacks capital and technologies, experts say.

VietNamNet Bridge – Import tax on CBU cars from Southeast Asian nations will be reduced to zero by 2018, posing a challenge for Vietnamese policy-makers and car producers,

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VietNamNet Bridge – The high taxes being imposed on automobiles would be cut sharply in a strategy to stimulate the demand and attract the investments to the Vietnamese automobile manufacturing.

Six industries including consumer electrics/electronics, food processing, ship building, agriculture machinery, environment and energy saving, automobile/car part manufacturing have been defined as the six key industries.

If the automobile industry development plan is implemented as expected, cars would get much cheaper in just some years.

While keeping complaining about the small scale of the Vietnamese market and the changeable policies, foreign automobile manufacturers still have been flocking to Vietnam.

Analysts have noted the rapid increase in the sales of pick-ups recently and predicted the sharper increase in the near future in the context of the higher sedan ownership registration tax.

It’s still unclear if the automobile manufacturing would be listed as a priority industry. The answer to the question will decide the scale of the market and the prices of the products.

Improper investment, capital, and technology policies have prevented the mechanical industry from reaching its set targets over the past ten years.

The Ministry of Finance (MOF) has suggested to reducing the car ownership registration tax and delay the plan to collect the kind of fee aimed in restricting private vehicles in circulation.

Domestic automobile joint ventures have expressed their worries that they may have to shut down by 2018, when the import car import tariff reduces to zero percent.

The Vietnam Register (VR), the national registration agency, has requested enterprises to have sample cars of every consignment of import cars to test their safety.

When automobile manufacturers’ association reported the sharp falls in the car sales, big worries have been raised--not only to the manufacturers, but to local authorities as well.