The domestic truck market has seen significant growth since the Ministryof Transport's decision to increase control and oversight of overloadedvehicles and ensure the safety of all drivers on the roads.
The ministry in April said overloaded trucks were a major cause of traffic accidents and road damage.
Thepolicy appears to have been successful, as the number of trafficaccidents since April has decreased and the transport sector seems to bemore competitive, especially the truck market.
According toindependent market watchdogs, the tightened controls on overloadedtrucks have caused a slower flow of goods, particularly at local ports.
Anofficial of the transport ministry, who declined to be named, said thatas many as 60 percent of container trucks owned by local firms are nolonger eligible to carry containers, under the new policy.
Mostof the owners of the trucks had initially registered their vehicles tocarry far less weight than the actual load of their containers.
With such a change, transport firms have had to buy or arrange to use other trucks suitable for their goods.
HuynhTrung Thanh, director of a transportation cooperative in Thu Ducdistrict, said: "We have had to lower the load of many vehicles to avoidbeing punished, so our carrying capacity fell by half. To meet ourregular customers' demand, we are going to buy between five and 10container trucks."
Dinh Nam Dinh, Chairman of the Ho Chi MinhCity Cargo Transportation Association, also said that many localtransport companies would have to purchase more vehicles if they wantedto keep their customers.
"Some companies will even have to doubletheir number of vehicles to maintain their carrying capacity. Thevehicles that they want to buy now will be those with high carryingcapacity such as container trucks, heavy-duty trucks and medium-dutytrucks," Dinh said.
According to several truck trading companiesin HCM City, the number of both domestically assembled and importedtrucks sold recently has increased significantly, particularly eight-and 10-tonne vehicles.
A representative of the Nam Viet MotorCompany, a distributor of Japan's Hyundai Motor Company in Vietnam, saidin May the number of Hyundai trucks sold was up 89 percent comparedwith the same period last year.
"In the first five months of the year, the company achieved a 130 percent growth in selling trucks," he said.
Inaddition to an increase in the number of sold trucks, the domesticmarket has also seen a sharp price surge of vehicles of this kind,analysts said.
For instance, the new price of heavy trucks ishundreds of millions of dong higher than it was before, while the priceof container vehicles has also gone up by 300 to 400 million VND(14,120-18,800 USD).
Anticipating that the demand for truckswould rise following the ministry's decision in April, many major trucktrading companies such as Thaco, Hyundai, Hino Motors Vietnam and IsuzuVietnam began to make preparations to supply the market.
However,according to market watchdogs, both manufacturers and importers havenot been able to meet demand due to the sudden increase.
TranTuan Hung, director of a transport company in Tan Binh, said he wantedto buy five medium-duty trucks that were domestically assembled but hewas told that he would have to wait at least six months.
"I now have to buy imported vehicles, but I don't know if I can receive them immediately or not," Hung said.-VNA
The ministry in April said overloaded trucks were a major cause of traffic accidents and road damage.
Thepolicy appears to have been successful, as the number of trafficaccidents since April has decreased and the transport sector seems to bemore competitive, especially the truck market.
According toindependent market watchdogs, the tightened controls on overloadedtrucks have caused a slower flow of goods, particularly at local ports.
Anofficial of the transport ministry, who declined to be named, said thatas many as 60 percent of container trucks owned by local firms are nolonger eligible to carry containers, under the new policy.
Mostof the owners of the trucks had initially registered their vehicles tocarry far less weight than the actual load of their containers.
With such a change, transport firms have had to buy or arrange to use other trucks suitable for their goods.
HuynhTrung Thanh, director of a transportation cooperative in Thu Ducdistrict, said: "We have had to lower the load of many vehicles to avoidbeing punished, so our carrying capacity fell by half. To meet ourregular customers' demand, we are going to buy between five and 10container trucks."
Dinh Nam Dinh, Chairman of the Ho Chi MinhCity Cargo Transportation Association, also said that many localtransport companies would have to purchase more vehicles if they wantedto keep their customers.
"Some companies will even have to doubletheir number of vehicles to maintain their carrying capacity. Thevehicles that they want to buy now will be those with high carryingcapacity such as container trucks, heavy-duty trucks and medium-dutytrucks," Dinh said.
According to several truck trading companiesin HCM City, the number of both domestically assembled and importedtrucks sold recently has increased significantly, particularly eight-and 10-tonne vehicles.
A representative of the Nam Viet MotorCompany, a distributor of Japan's Hyundai Motor Company in Vietnam, saidin May the number of Hyundai trucks sold was up 89 percent comparedwith the same period last year.
"In the first five months of the year, the company achieved a 130 percent growth in selling trucks," he said.
Inaddition to an increase in the number of sold trucks, the domesticmarket has also seen a sharp price surge of vehicles of this kind,analysts said.
For instance, the new price of heavy trucks ishundreds of millions of dong higher than it was before, while the priceof container vehicles has also gone up by 300 to 400 million VND(14,120-18,800 USD).
Anticipating that the demand for truckswould rise following the ministry's decision in April, many major trucktrading companies such as Thaco, Hyundai, Hino Motors Vietnam and IsuzuVietnam began to make preparations to supply the market.
However,according to market watchdogs, both manufacturers and importers havenot been able to meet demand due to the sudden increase.
TranTuan Hung, director of a transport company in Tan Binh, said he wantedto buy five medium-duty trucks that were domestically assembled but hewas told that he would have to wait at least six months.
"I now have to buy imported vehicles, but I don't know if I can receive them immediately or not," Hung said.-VNA
