VIETNAM automobile industry
Latest News about VIETNAM automobile industry
Mr. Tran Van Tam, the owner of a homemade electric car, was recentlyy introduced on a British news site. Tam’s road from a dream to research and development of cars was a difficult journey.
To develop electric vehicle industry, charging stations, batteries and reasonable prices are all needed. But an overall policy for these issues is not yet available in Vietnam, particularly battery waste disposal and treatment.
Cars in Vietnam since 2021 are subject to new regulations such as registration fee, import tariff, and higher emission standards.
The Ministry of Finance has written to the prime minister proposing a halt to the reduction in the registration fee for locally assembled or manufactured cars,
Existing incentive policies are not attractive enough to encourage local enterprises to further invest in the automobile industry.
While Covid-19 has had a big impact on the economy and most people, it has not hurt the rich. They are stil spending big money on luxury car models.
The Ministry of Planning and Investment (MPI) is drafting a plan on solutions to take full advantage of the opportunities to be brought by the investment relocation wave after Covid-19 to develop supporting industries
The domestic automobile industry was forecast to thrive, given the Government’s supports in tax policies for imported automobile components coupled with the increasing income of citizens.
Automobile manufacturers usually incur a loss for the first 5-10 years of operation, but some of them have had to give up the game because they could not afford the high costs.
Despite efforts in converting part of their facilities to produce ventilators and face masks for fighting the coronavirus pandemic, global carmakers are still reporting losses
Car imports in Vietnam have increased again after a long slump caused by the impact of Covid-19. Thailand and Indonesia have been the biggest sellers.
Banks are trying to sell Vinaxuki’s assets to collect debts, but the assets remain unsold.
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.