Vietnamese automobile manufacturers are cherishing the dream of entering the world market.
Despite sharp price cuts of hundreds of million of dong, cars still cannot find buyers. The automobile market is predicted to see a minus 15 percent growth rate this year.
With preferential tariffs beginning in 2020, used luxury cars from CPTPP-member countries will be available in Vietnam.
The US-based General Motors (GM) has stated it will stop selling Chevrolets this year and shut down its factory in Thailand from which Chevrolets are exported to Vietnam.
Cars will have to re-test their emissions and teaching driving will be tightened. In addition, car imports from the EU will bear lower tariffs.
2019 witnessed a fierce race among manufacturers and distributors to reduce prices to attract more buyers.
Despite sale promotion campaigns launched by manufacturers, the car market remained gloomy in the last months of the year.
Cars from Thailand led the market in the first 10 months of 2019, while fewer Chinese products have been imported because of the controversy about China's map with nine dash line.
Vietnam’s automobile industry not only has to compete with veterans Thailand and Indonesia, but also with new manufacturers in Laos, Cambodia and Myanmar.
Experts believe that in the immediate time, Laos and Cambodia will not be rivals on the same par with Vietnam.
In the first half of the year, the number of cars imported to Vietnam increased by 500 percent, while some models saw a sharp increase of 650 percent compared with the same period last year.
If supporting industries cannot develop and automobile joint ventures continue importing car parts for assembly, Vietnam’s automobile industry will not survive after 2025, analysts say.
CBU (complete built unit) imports have been flooding the Vietnamese market while domestic factories have cut output, raising concerns among car part manufacturers that they may lose jobs.
Vietnam's automobile market is expected to set a new sales record this year with sales of the Vietnam Automobile Manufacturer Association (VAMA) members and TC Motors averaging nearly 32,000 cars each month in January-September.