VietNamNet Bridge – Super cars are forecasted to continue flowing into Vietnam, despite the attempt by the Ministry of Industry and Trade to restrict imports, car dealers say.

 

While the people who plan to buy medium class or popular cars worry that there would be fewer choices for them in the time to come, a result of the new policy on restricting imports; rich people do not have to worry about that. Car dealers have affirmed that super cars will “have their own to come to Vietnam” and that “if you have money, you will have super cars”.

 

A well-known car player in Hanoi has told VTC newspaper that there is still a possibility of buying super cars, and that the problem is just how much the cars would be valued. The player has admitted that the newly released Circular No 20, which requires many additional types of documents, will force car dealers to spend much more time and money to import cars. “However, you will have any models you want, you just need to pay money,” he said.

 

The circular, which was issued several days ago, is believed to lead to the fact that many car dealers will have to shut down their business, because obtaining so many documents proves to be impossible.

 

The owner of a car showroom in Hanoi, while talking with reporters, also said that car dealers have found out the way to “dodge the laws”, and that customers just need to place orders and they will get any cars they want, no matter they are Lamborghini, Ferrari, or Bugatti.

 

The majority of super cars have been imported to Vietnam quietly, and the cars have been rarely imported as brand new cars or imported directly from manufacturers, but mainly as used cars or the imports from third markets.

 

Therefore, importing used cars which are nearly 100 percent new with the mileage of 1000-2000 kilometers would be the easiest solution for car dealers. In this case, the import cars remain new, while they have reasonable prices, and more importantly, they will not be affected by the new regulations.

 

However, there are still connoisseurs who want to purchase cars directly from manufacturers. As for them, purchasing luxurious cars is still possible, though they will have to follow more complicated procedures, spend more time and money to get cars. To date, famous automobile manufacturers such as Ferrari, Bentley, Lamborghini and Maserati still have not had authorized dealers in Vietnam.

 

In related news, the importers of medium class and popular cars are now racing against time to bring import cars to Vietnam prior to June 26, the day when the Circular No 20 takes effect.

 

After witnessing the sharp increase in March, the car imports continued to stay at a high level in April and May with 5500 cars imported every month, worth 122 million dollars.

 

As such, in the first five months of the year, it is estimated that 26,900 cars have been exported which have the total import turnover of 524 million dollars.

 

The high number of imports in the context of the low demand has been explained by the fact that importers try to import cars prior to June 26. After that time, the business would be more difficult due to the stricter regulations on car import.

 

In fact, car dealers want to import more cars prior to June 26. However, the overly bank loan interest rates, plus the fear that it is impossible to fulfill procedures to bring cars prior to that day have made many car dealers hesitant.

 

Sources say that the supply has become short, because car manufacturers do not have enough car parts for assembling after the tsunami in Japan. The sources also said that the imports in May mostly come from Asian markets such as South Korea, Taiwan or the Middle East. The imports from the US are not big due to the input cost increases and the long transportation time.

 

Source: VTC