Car trading companies are complaining about high inventories and sharp profit decreases as people have cancelled car purchase plans amid Covid-19.

Despite the 50 percent vehicle registration tax cut and large-scale sale promotion programs, inventories are still high and sales are on the decrease.

What should automobile manufacturers do – import cars for domestic sale or assemble cars domestically? They prefer the second solution, though the first brings higher profit.

Automobile producers are observing the complex changes of the second wave of the COVID-19 pandemic to adjust their businesses.

 Several automakers are considering assembling their best-selling models in Viet Nam due to the Government’s policy of zero import tariffs on components and a 50 per cent reduction in registration fees.

The automobile market has become bustling with more and more car models, mostly domestically assembled, introduced.

Vietnam is striving to successfully build up its automobile industry. 

Vietnam's localization rate for passenger cars of under nine seats is 7 - 10%, much lower than the target of 35 - 45% set for the car industry 20 years ago.

Some experts and government units have voiced concern over the future growth prospects of the local automobile sector due to the upsurge in car imports from foreign markets in recent months.