return icon

VN automobile sales fall to 5-year low

Car sales have dropped to a 5-year low and may continue to slide if the pandemic persists.

The Vietnam Automobile Manufacturers' Association (VAMA) reported that its member companies sold 19,154 cars in March, an increase of 10 percent over the month before, but a decrease of 40 percent compared with the same period last year.




In the first three months of the year, automobile manufacturers sold 50,009 products only, or 33 percent lower than the same period last year.

The sales of cars dropped sharply by 35 percent, commercial vehicles by 26 percent, while specialized vehicles 32 percent, which showed the market purchasing power was at a 5-year low.

The sharp sales decreases have been reported for most famous automobile brands, including Toyota, Ford, Kia and Mazda. Peugeot’s sales dropped by 56 percent, Mazda’s 49 percent, Ford’s 48 percent, Honda’s 39 percent, Toyota’s 28 percent and Hyundai 9.1 percent.

According to Toyota Vietnam’s Hoang Thi Nhu Quynh, because of Covid-19, the manufacturer sold 5,143 products in March, down by 44 percent, of which the sales of cars decreased by 42 percent and commercial vehicles 46 percent.

The sales of cars dropped sharply by 35 percent, commercial vehicles by 26 percent, while specialized vehicles 32 percent, which showed the market purchasing power was at a 5-year low.

Even the manufacturer’s bestdellers such as Vios and Innova also saw sales decreases. Only 2,293 Toyota Vios were sold (-28 percent). The figures were 544 for Innova (-68 percent), 656 for Fortuner (-19 percent).

According to the Ministry of Industry and Trade, many tourism, service, entertainment and transport firms have had to scale down or suspend operation. The number of clients coming to sale agents to seek to buy cars and number of newly signed contracts have decreased significantly.

A gloomier business season is ahead for automobile manufacturers. In February and March, manufacturerslaunched new models and ran sale promotion programs, but the sales were very slow compared with the month before.

In April, as car dealers temporarily suspended their business, the revenue goals were unattainable.

An analyst commented that though there are positive signs in the fight against the epidemic, it is difficult to persuade people to spend big money on automobiles. A representative of VAMA said the automobile market in 2020 may see sales drop.

Seven automobile manufacturers suspended their production in early April, which affected their expansion plans. Ford Vietnam, which holds 10 percent of market share, postponed a project on expanding its Hai Duong factory because of Covid-19. It had planned to invest $82 million more to increase the capacity from 14,000 products a year to 40,000 by mid-2020.

Kim Chi


Honda Vietnam resumes automobile, bike production from April 23

Honda Vietnam resumes automobile, bike production from April 23

Honda Vietnam announced on late April 22 that it will resume the production of automobiles and motorbikes from April 23 after 22 days of suspension to prevent the COVID-19 pandemic.

When will the Vietnamese automobile dream come true?

When will the Vietnamese automobile dream come true?

Vietnam still has to import car parts for domestic assembling. As a result, the production cost is high and domestically made products remain less competitive than imports.


Authority maintains tough stance on safety violations on Hanoi’s “railway café street”

The Vietnam Railway Authority has insisted that it will take a hard line on railway traffic safety violations along Hanoi’s popular "railway café street" sketching across the inner districts in its recent report to the Ministry of Transport.

Foreign hi-tech firms expand investment in Vietnamese market

Molex, the world’s leading supplier of connectors and interconnect components, has unveiled its ambitions to expand its existing manufacturing plant in the Vietnamese market by developing its plant in Hanoi.


Hai Phong lures more than 1.24 billion USD in first nine months

Vietnam rakes in US$16.05 billion from tourism in nine months

Vietnam earned some 394.2 trillion VND (16.05 billion USD) from tourism in the first nine months of this year, equivalent to 78% of the figure recorded in 2019 before the COVID-19 pandemic broke out.


Vietnam invests in 10 energy technologies

Vietnamese poetry collection published in Canada

A poetry collection from five female translators based in Hanoi, entitled Ngũ Sắc Ánh Sáng (5 Sights of Light), has been introduced to Canadian readers by Ukiyoto Publishing.

Multi-billion thermal power project needs more capital

The Ministry of Industry and Trade (MOIT) has asked for ministries' opinions on solutions to problems related to the balance sheet of the Vung Ang 1 thermal-power plant.

The best September photos on VietNamNet

Hot air balloons with the Vietnamese national flag of 1,800m2 on the banks of the Saigon River, Typhoon Noru making landfall in Quang Nam Province, the roofs of many houses being blown away...

BSR to expand Dung Quat Oil Refinery

The Ministry of Industry and Trade (MOIT) has asked Binh Son Refining and Petrochemical JSC (BSR) to clarify some issues related to its project on expanding Dung Quat Oil Refinery.

Dutch conductor to lead concert at Opera House

Conductor Leon Bosch from the Netherlands will lead a concert featuring masterpieces by European composers at the HCM City Opera House on Saturday, October 8.

‘578’ to represent Vietnam at Oscars

An action film starring Miss Universe Vietnam 2018, H'hen Niê, 578: Phát Đạn Của Kẻ Điên (578: Magnum), has been selected as Vietnamese representative at the 95th Oscars, 2023.

USD surges to VND24,000, US$1.7 billion withdrawn from circulation

The State Bank of Vietnam (SBV) withdrew nearly VND41 trillion ($1.7 billion) through open market operations as the US dollar rose to over VND24,000 on September 26-30, 2022.

HCM City to build a series of new traffic projects

HCM City is speeding up procedures to start the construction of key traffic works at gateways by the end of the year, according to HCM City's Department of Transport.

Burning garbage in Hanoi threatens residents' health, property

There have been consecutive fires caused by people's poor awareness, who were burning garbage and straw in residential areas, causing fires recently in Hanoi.

New cargo airline still waiting for license

After the Prime Minister agrees on the establishment of IPP Air Cargo, the Ministry of Transport (MOT) will implement procedures to grant a license to the air carrier, according to MOT Deputy Minister Le Dinh Tho.