VietNamNet Bridge - Luxury manufacturers have reported fully satisfactory business results in Vietnam for 2015. Vietnamese, who have an annual income per capita of nearly $2,000, are willing to spend billions of dong to buy luxury products.

 


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Xe Hoi The Thao Uy Tin, the importer and official distributor of Porsche products in Vietnam, reported 235 products were sold in 2015, nearly double that in 2014.

With the high selling prices of VND3-10 billion, the sales are described as ‘beyond the manufacturer’s expectations’. 

The growth rate of nearly 100 percent Porsche gained in Vietnam was more impressive than any other market: it sold 5,583 cars in Asia Pacific in 2015, but this represented a only a 15 percent growth rate in comparison with 2014.

Luxury manufacturers have reported fully satisfactory business results in Vietnam for 2015. Vietnamese, who have an annual income per capita of nearly $2,000, are willing to spend billions of dong to buy luxury products.
Mercedes-Benz Vietnam, another luxury car manufacturer from Germany, which now holds the largest domestic luxury market share, also reported a record high number of 3,600 cars sold in 2015, up by 50 percent compared to the year before.

BMW, though declining to reveal the number of cars sold in 2015, said the number for the first time reached the 4-digit level, which represented a 40 percent growth rate compared to the year before. Audi has reported a two-digit growth rate.

However, it was Lexus, the brand from Japan, which saw the highest growth rate: it sold 960 products in 2015, triple the car sales in 2014. 

Lexus has the selling price of VND2.5 billion at minimum, while the brand has been officially present in Vietnam for two years with two sales agents in Hanoi and HCM City.

Infinity, also a brand from Japan, reported that hundreds of cars, priced at VND2.7-4.5 billion, were sold last year, a 174 percent increase if compared with 2014. The satisfactory business results prompted the brand to open a second showroom & service center in Vietnam.

Optimism for 2016

High-end cars are expected to see prices surging sharply in 2016 as a result of new tax policies. However, analysts and manufacturers believe the sales would be still high.

An analyst said though the average income per capita remains low, the number of high income earners in Vietnam has been increasing rapidly, thus leading to higher demand for luxury goods.

He cited a report as saying that about 7,000 luxury cars were sold in 2015, while the figure was just 4,000-5,000 in the years before.

Most luxury car brands imported cars under the mode of complete built unit (CBUs) to sell domestically. 

Mercedes Benz is the only manufacturer which has a factory in Vietnam which assembles some models. This explains Vietnam’s high import turnover and high trade deficit. 

According to the General Statistics Office (GSO), Vietnam spent $3 billion to import CBU cars, an increase of 87 percent over 2014.


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