VietNamNet Bridge - For most Vietnamese consumers, a house and car are two of the most valuable assets.

The Ministry of Industry and Trade has admitted that the plan to develop an automobile industry of Vietnam has failed, but it still insists on protecting domestic assembling enterprises which work for foreign invested enterprises.

Car prices in Vietnam are nearly two times higher than in other countries in the region such as Thailand and Indonesia, and much higher than in countries with developed automobile industries such as the US and Japan. 

VietNamNet Bridge - Though appreciating Japanese support to Vietnam’s industries, economists say that Japanese automobile manufacturers’ claims for investment incentives are unreasonable.

Ninety-six percent of Vietnam’s enterprises are small businesses, with the majority having 10 workers or less. Only 2 percent of enterprises are large in size, while another 2 percent are medium size. 

VietNamNet Bridge - Japanese automobile manufacturers have discussed the possibility of relocating their factories to regional countries because of Vietnam’s weak supporting industries.

VietNamNet Bridge - Despite tariff cuts and low import prices, Vietnamese still have to pay high prices to buy cars because of high taxes and fees.

VietNamNet Bridge - While Indian cars are cheap with the average import price of VND84 million, French autos are the most expensive with the average import price of VND1.3 billion.

 VietNamNet Bridge – The automobile and car part manufacturing has the transfer pricing rate of 51 percent, the third highest to finance & insurance and textile & garment.