Vietnam’s Automobile Industry Background
The current status quo of elevated car prices for the Vietnamese population proves that Vietnam is still “beating around the bush” related to the burdensome import tax policies. This inactivity greatly affects the local market car price to be 3 or 4 times higher than that in more developed countries such as France, the U.S. and Japan. To the Vietnamese people, the automobile price in the local market ranks number one as the most expensive item compared to the price of a car produced in the local market. The price of an automobile in Vietnam is higher than USD 15,000 with an additional USD 1,000 per year added for taxes and toll fees. This ranks the price of an automobile as 3rd after the U.S. and EU (ASEAN Automotive Statistics office, 2015).
VIETNAM’S CARS AND AUTO PARTS IMPORTS UPDATES (9 MONTHS 2022)
In the first 9 months of 2022, the import of complete CBU cars to Vietnam was estimated at 114,239 units, with a turnover of 2.60 billion USD. Auto parts imports into Vietnam are estimated at 4.3 billion USD.
According to the Vietnam Automobile Manufacturers Association (VAMA), in August 2022, sales of the VAMA’s members reached more than 30,000 vehicles of all kinds, up 2% compared to July, but increased to 247% over the same period in 2021.
Out of the above total sales, there are 25,000 passenger cars, up 9%; more than 5,500 commercial vehicles, 20% off; nearly 270 specialized vehicles, up 21% compared to the previous month.
In terms of origin, while sales of domestically assembled cars reached nearly 15,500 units, up 3%, sales of imported ones were more than 15,000 units, up 1% from the previous month.
In the first 8 months of 2022, VAMA’s member units have total sales of more than 260,000 vehicles, up 50% compared to the same period in 2021.
By vehicle origin, in the past 8 months, sales of domestically assembled cars reached more than 150,000 vehicles, up 54%, while imported cars were more than 110,000 units, up 45% over the same period in 2021, the list of 10 best-selling cars in the market continues to witness strong fluctuations. After releasing the new version, Xpander has regained its form and continuously leads in sales.
With sales up to nearly 3,000 vehicles, Mitsubishi Xpander continued to set a new record and became the best-selling car in the whole market in August. This result is nearly twice as high as the two following positions, Toyota Corolla Cross and Toyota Corolla Cross. Toyota Veloz with sales of about 1,600 cars and more than 1,500 cars, respectively
AUTO PARTS
According to preliminary statistics, auto parts imported into Vietnam in September 2022 are estimated at 510 million USD, down 2.4% over August 2022 and up 56.1% compared to September 2021.
In the first 9 months of 2022, the import of auto parts into Vietnam is estimated at 4.3 billion USD, up 15.3% in turnover compared to the same period in 2021.
Korea is the largest auto parts supplier to Vietnam in the first 8 months of 2022, accounting for 26.4% of total imports, followed by China, Thailand, and Japan, accounting for 22.9%, 16.6%, and 15.2%, respectively. Vietnam’s auto parts imports from these markets increased over the same period in 2021.
Top 10 auto parts importers
(First 8 months 2022)
Soure: Vietnam Credit