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. 

The domestic market will open more widely to foreign cars as enterprises now will not be required to submit as many documents as they did before, as stipulated in Circular No 20/2011.

VietNamNet Bridge - The tariff cut to zero percent will pave the way for imports from ASEAN to flood Vietnam, but analysts do not think low-cost cars will be available by 2018. 

VietNamNet Bridge - Thanh Cong and Truong Hai are determined to export cars, despite a cut in import tariffs on cars scheduled to take effect in 2018. 

VietNamNet Bridge - Russian cars have many loyal fans in Vietnam, but many complain that the cars are unaffordable.

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 investors attach high importance to expanding their investments in Vietnam. However, the localization ratio of their products remains modest, at 34 percent, much lower than that in other regional countries.

VietNamNet Bridge - Economists and representatives of Vietnamese automobile enterprises believe the threatened departure of foreign automobile manufacturers would not be a problem for Vietnam.

VietNamNet Bridge - The Hanoi authorities are trying to recall 2.5 million old motorbikes which discharge harmful substances to the environment. However, observers don’t think the solution is feasible. 

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 - So many big seafood companies have met with misfortune that some analysts have predicted the decline of the industry.

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 - Vietnamese enterprises are working hard to become suppliers of parts and accessories for foreign electronics manufacturers. 

VietNamNet Bridge - Vietnam was the second fastest growing car market in the world in 2016, with imports favored by most Vietnamese buyers. 

VietNamNet Bridge - The tariff cuts applied to imports from ASEAN and the luxury tax based on cylinder capacity are expected to encourage the import of more low-cost models. 

VietNamNet Bridge - Foreign investors can see great auto sales opportunities in the Vietnamese market. Billions of dollars have been spent to develop car distribution networks instead of manufacturing.

VietNamNet Bridge - Mercedes, Ford, Audi, Porsche and BMW auto manufacturers have been expanding their distribution networks in Vietnam in recent months.

Tran Ba Duong, a big shareholder of Thaco, a manufacturer, the largest privately run conglomerate, could be on a par with Pham Nhat Vuong and Trinh Van Quyet, the richest billionaires, if Thaco shares are listed on the bourse.