Rising automobile imports put domestic sector at risk: expert

Some experts and government units have voiced concern over the future growth prospects of the local automobile sector due to the upsurge in car imports from foreign markets in recent months.

Rising automobile imports put domestic sector at risk: expert
Customers examine a four-seat car on display in this file photo. Some experts and government units have voiced concern over the future growth prospects of the local automobile sector due to the upsurge in car imports

Statistics from the Ministry of Industry and Trade indicate that in the first six months of the year, the volume of automobile imports reached a record high of over 75,430 units, worth US$1.68 billion, skyrocketing 513% in volume and 413.4% in value year-on-year, the local media reported.

The strong rise was attributable to the automobile import tariff in the ASEAN region being slashed to zero.

The number of automobile imports is forecast to continue rising in the coming years, increasing pressure on the local automobile sector.

Speaking at the seminar titled “Steps forward for supporting industries in Vietnam,” Vu Tan Cong, an automobile expert, said that the Vietnamese automobile sector could soon succumb to heavy competition from foreign manufacturers if the status quo remains unchanged.

Cong reported that the cost of automobile production in Vietnam is 18%-20% higher than in other countries, making it difficult for the domestic automobile industry to compete with foreign rivals.

The Government should adopt supporting programs and preferential tax policies to ensure the stable development of the local automobile industry, Cong suggested.

Besides this, domestic automobile firms should seize more opportunities in the local market and diversify consumption markets to escape this problem.

 

Apart from this, the ministry’s report revealed that in Vietnam, supporting industries for automobile manufacturing remain weak.

Only a few suppliers of automotive supporting industries are able to join the supply chains of automobile manufacturers and assemblers in Vietnam, the ministry said.

Meanwhile, Thailand has some 700 suppliers for auto parts and 1,700 supporting companies, contributing to the strong growth of its automobile industry.

The quality of imported cars is controlled more closely than that of domestic automobiles, raising customers’ confidence in foreign cars, the ministry noted in its recent report to the prime minister.

The selling prices of vehicles in Vietnam are higher than those in the region, whereas the quality of locally assembled cars is lower than that of imported cars, according to a report from the Heavy Industry Department, under the Ministry of Industry and Trade.

The ministry explained that the country’s automobile manufacturing sector would have a gloomy future if the quality of cars they produce is not enhanced and the prices of cars they sell are not lowered. SGT

Vietnam to spend $4.3 billion to develop automobile industry

Vietnam to spend $4.3 billion to develop automobile industry

Experts think the plan to spend $4.3 billion to develop the automobile industry will be in vain.

Vietnam’s automobile market to be flooded with zero-tariff ASEAN cars

Vietnam’s automobile market to be flooded with zero-tariff ASEAN cars

The car sales in Vietnam are forecast to reach 500,000 units per year in 2020 and 1 million per year by 2030, with a turnover of US$12 billion each year.  

 
 

Other News

.
Businesses wait for bank debts rescheduling
Businesses wait for bank debts rescheduling
BUSINESSicon  15/09/2021 

A week after the State Bank of Vietnam issued Circular 14 on debt rescheduling to alleviate the difficulties faced by businesses due to the COVID-19...

When the two 'locomotives' restart at the same time
When the two 'locomotives' restart at the same time
FEATUREicon  14/09/2021 

Contributing about 45% of the country’s GDP, HCM City and Hanoi are considered the two engines pulling the national economy. Both must be healthy and go hand in hand to revive the pandemic-hit economy.

Post-pandemic economic recovery plans in the pipeline
Post-pandemic economic recovery plans in the pipeline
BUSINESSicon  14/09/2021 

The Ministry of Planning and Investment (MPI) plans to submit its economic recovery project to competent authorities for approval in October, with the 2022 to 2023 period to be identified as the ideal time for recovery efforts.

Consumers warned against buying Chinese mooncakes with no clear origin, quality
Consumers warned against buying Chinese mooncakes with no clear origin, quality
BUSINESSicon  15/09/2021 

Mooncakes with no clear information about origin, manufacturer names or quality are being sold at surprisingly low prices. Consumers have been advised to be cautious when buying mooncakes online.

Plan to re-open Vietnam’s aviation market revealed
Plan to re-open Vietnam’s aviation market revealed
BUSINESSicon  14/09/2021 

The plan to restore the domestic air transport market, developed by the Civil Aviation Authority of Vietnam (CAAV), has been divided into three phases.

VIETNAM BUSINESS NEWS SEPTEMBER 14
VIETNAM BUSINESS NEWS SEPTEMBER 14
BUSINESSicon  14/09/2021 

Vietnam needs additional 1 million ICT personnel by 2030

Vietnamese billionaire enters $10 billion pork, animal feed market
Vietnamese billionaire enters $10 billion pork, animal feed market
BUSINESSicon  14/09/2021 

After successfully entering the fish sauce market, billionaire Nguyen Dang Quang has invested in two segments with high potential: the US$10 billion pork and animal feed market.

Decree for Fintech sandbox to be submitted in Q4
Decree for Fintech sandbox to be submitted in Q4
BUSINESSicon  14/09/2021 

The Government has issued a resolution to create a sandbox for financial technology (Fintech) in the country’s banking sector.

Over 60% of US firms will not consider shifting production out of Vietnam
Over 60% of US firms will not consider shifting production out of Vietnam
BUSINESSicon  13/09/2021 

A flash survey by the American Chamber of Commerce in Vietnam revealed that while many US companies' operations in Vietnam have been affected significantly by the pandemic, the majority do not want to shift production out of Vietnam.

Hao Hao instant noodles in EU: supplier to company used EO to sterilize materials
Hao Hao instant noodles in EU: supplier to company used EO to sterilize materials
BUSINESSicon  14/09/2021 

Acecook Vietnam, after checking up on material suppliers, has found that a supplier used Ethylene oxide (EO) to sterilize some materials.

VIETNAM BUSINESS NEWS SEPTEMBER 13
VIETNAM BUSINESS NEWS SEPTEMBER 13
BUSINESSicon  13/09/2021 

Banks on road for digital transformation

Fish harvesting teams need to be set up amid pandemic
Fish harvesting teams need to be set up amid pandemic
BUSINESSicon  13/09/2021 

Localities should establish groups and teams for harvesting fish that could facilitate the issuance of travel permits in groups instead of individual travel permits amid the COVID-19 pandemic.

Cold storage, sweet but high-hanging fruit
Cold storage, sweet but high-hanging fruit
BUSINESSicon  13/09/2021 

The trend of shoppers going online en masse is driving demand for cold storage facilities in most countries, with Vietnam seemingly among those with a severe short supply.

Vietnamese keen on cryptocurrencies: surveys
Vietnamese keen on cryptocurrencies: surveys
BUSINESSicon  13/09/2021 

According to a survey by Chainalysis, Vietnam's cryptocurrency market has grown by 881 percent year-on-year, ranking first out of 154 countries in the "Global Cryptocurrency Adoption Index 2021" ranking.

Agricultural by-products: a billion-dollar 'gold mine' in Vietnam
Agricultural by-products: a billion-dollar 'gold mine' in Vietnam
FEATUREicon  13/09/2021 

Agricultural by-products are called the "gold mine" of the Vietnam agricultural industry with up to 156 million tons per year. But these lucrative sources have been neglected for many years.

Hanoi woman earns over $14 million from writing apps for Google and Apple
Hanoi woman earns over $14 million from writing apps for Google and Apple
BUSINESSicon  13/09/2021 

A 29-year-old Hanoi woman earned VND30 billion (nearly $14.5 million) a year by writing software for Google Play and App Store, paying tax of VND23.4 billion (over $1 million).

VIETNAM BUSINESS NEWS SEPTEMBER 12
VIETNAM BUSINESS NEWS SEPTEMBER 12
BUSINESSicon  12/09/2021 

Vietnam continues to be attractive investment destination: HSBC

NA Chairman witnesses signing of deals between Vietnamese and European firms
NA Chairman witnesses signing of deals between Vietnamese and European firms
BUSINESSicon  12/09/2021 

NA Chairman Vuong Dinh Hue witnessed the handover of donations of medical supplies to Vietnam and the signing of several agreements between Vietnamese and European businesses at a ceremony held in Helsinki on September 11.

Real estate remains attractive to foreign investors
Real estate remains attractive to foreign investors
BUSINESSicon  11/09/2021 

With a total registered capital of nearly US$1.6 billion during January-August, real estate continued to rank third among 18 sectors attracting foreign direct investment (FDI).

Government issues resolution to support businesses
Government issues resolution to support businesses
BUSINESSicon  11/09/2021 

Facing the decline in resilience of businesses, cooperatives and business households in the rapidly spreading COVID-19 pandemic, the Government has issued Resolution No 105/NQ-CP on supporting businesses.

 
 
 
Leave your comment on an article

OR QUICK LOGIN