Vietnam ’s total car sales in 2012 will drop drastically and return to
2007’s level, according to the Ministry of Industry and Trade (MoIT).
The forecast is based on the seasonally adjusted
annual rate ( SAAR ), when only 6,982 cars were sold in April, a 24
percent drop over the previous month and 46 percent fall against the
same period last year.
It is estimated that only 81,000 cars will be sold in the country by the end of 2012.
According to the MoIT, car manufacturers and assemblers are taking
measures to cut down production levels due to increasingly bigger
stockpiles. The distribution network is also struggling with the back
On top of this, customers are becoming much
more careful when buying a car due to the gloomy economic outlook, high
registration fees in Hanoi and Ho Chi Minh City and high interest
For the market to recover, it is necessary
for manufacturers and assemblers to cut costs and reduce car prices.
However, policies to reduce value add tax and luxury tax are also
essential, the MoIT said.
The MoIT is to ask the
government to apply preferences to products that contain a high level of
domestically produced spare parts.
statistics released by the Vietnam Automakers Association, Vietnam
sold 138,000 cars in 2011, a drop of 5 percent compared to the previous