A client checks a new car at a showroom in Hanoi (Photo: VNA) Thisassessment was based on the continuous increase in sales volume ofVietnamese auto manufacturers and assemblers in the fourth quarter of 2021.
Automobileexperts have attributed this growth to the Government’s preferential policies,which are the main drivers for the recovery of the local auto industry in 2022.
InOctober last year, the Ministry of Finance conducted a draft decree to collectsuggestions from ministries and agencies to cut the registration fee ondomestically manufactured and assembled cars.
TheDecree clearly states that the registration fee rate for domesticallymanufactured and assembled cars will be 50 percent compared to the previousone, applicable from December 1, 2021, to the end of May 31, 2022.
Mostrepresentatives of auto brands in Vietnam expect a recovery in sales in 2022 asthe COVID-19 pandemic seems to be under control.
Analystsfrom VNDirect Securities JSC expect that the Government's reductionon registration fees will help the domestic auto industry to recover in 2022.
Besides,listed auto companies experienced strong growth in the first half of lastyear thanks to the launch of many new models and promotional policies toattract customers. However, their net profit in the third quarter of 2021 wasstill hit hard by the pandemic.
Thepandemic outbreak in the third quarter last year forced many cities andprovinces to apply social distancing measures. The Vietnam AutomobileManufacturers Association (VAMA) estimates that more than 200 auto dealers hadto close in August and September 2021.
Butthe domestic auto market rebounded later on. The VAMA said that in October2021, some 29,797 cars were sold, an increase of 120 percent compared toSeptember 2021.
TheVAMA announced that the total market sales of its member units reached 38,656vehicles in November 2021. The sales of passenger, commercial andspecial-purpose vehicles expanded by 40 percent, 8 percent and 39 percent,respectively, compared to the previous month.
VAMA'smember units had total sales of 257,390 vehicles in the first 11 months of2021, up 3 percent over the same period last year.
With50 percent reduction in the registration fee, which came into effect inDecember 2021 have also helped push up sales.
VAMA’smembers sold 43,526 units in December alone, the highest last year. Decemberwas the fourth month in a row that auto sales rose.
Thegrowth came as the pandemic was under control, social distancing measures inmany provinces and cities across the country were lifted and there was a 50 percentreduction of registration fees for cars manufactured and assembled inVietnam applied from early December 2021.
Inaddition, VinFast, the Vietnamese automaker, has begun delivering its firstbattery-electric SUV - the VF-34 - to customers in its home market. The companyalready offers a full line of conventional automobiles in Asia.
Thecompany has also announced its first fleet customer to buy electric cars.Artemis DNA, a biotech company dealing in genetics, has reserved 100 EVs fromVinFast and expects delivery in late 2022 when VinFast will turn into anall-electric car manufacturer.
Expertsbelieve that VinFast's electric cars will create a new trend for the Vietnameseauto market in 2022-2023 when other EV models are expected to launch in theVietnamese market in the first half of 2022 such as the Kia EV6, MercedesBenz EQB, Mercedes Benz EQE and Mercedes Benz EQS.
However,they have shown their concern that the development of the pandemic couldhave a direct effect on the performance of listed auto companies./.
VNA
