The move, as commented by analysts, shows that Nissan has ambitious business plans in Vietnam’s market. The manufacturer plans to seek new partners in Vietnam to better exploit the market.

Together with Tan Chong, Nissan Motor has built up Nissan’s foundations in Vietnam. Believing the great potential of the market, Nissan is seeking feasible solutions to scale up its business in Vietnam.

According to Nissan’s official statement, it is restructuring business activities in Vietnam, but the details of the restructuring plan are not known. Nissan Japan affirmed that the interests of Vietnamese customers will be preserved and all commitments made before will be implemented.

Nissan Vietnam also has confirmed that its business activities will continue as usual. Its management board is working closely with Nissan Motor to increase sales and expand Nissan’s market share in Vietnam.

Tan Chong confirmed it had lost the right to distribute Nissan products in Vietnam, commencing from September 10, 2019. Nissan Japan has bigger ambitions in Vietnam’s booming automobile market.

Nissan sold 280 cars in November 2018 and 2,449 cars in the first 11 months of the year. More than 2,200 products were sold in 2017 and 2,180 were sold in 2016, or 180 products a month.

Nissan Sunny once sold very well, with 1,525 products sold in 2015. However, the figure dropped to 500 in 2017, less than its rivals.

Nissan X-Trail was one of the bestsellers in the world in 2016 with 766,729 products sold. It is estimated that about 100 products have been sold a month since September 2016 when the model hit the Vietnamese market.

In Vietnam, Nissan also sells Navara, a pick-up model, imported from Thailand, but it doesn’t publicize those sales.

A question has been raised about the fate of Tan Chong’s factory in Da Nang. The factory is churning out Nissan Sunny and X-Trail, up to 37,000 products a year, enough to satisfy domestic demand and export.

CafeF reported that Nissan is likely to stop production in Vietnam and shift to import products from ASEAN for sale in Vietnam, which will allow it to take full advantage of the preferential tariff of zero percent.

To date, Nissan Vietnam still has not given an official answer about the fate of Tan Chong’s factory in Da Nang after September 2019. 

It is still unclear if the right to distribute Nissan branded products will be transferred to another business.

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