NA leader promises optimal conditions for US firms

It has yet to meet the domestic consumer demand that has continued to increase over the past two decades. Its focus on assembly has prevented it from developing a complete manufacturing plant. Shortcomings Nguyen Manh Quan, Head of the Ministry of Industry and Trade’s (MoIT) Heavy Industry Department, says domestication ratios remain at 7–10 percent for cars and 35-40 percent for trucks. Most Vietnamese manufacturing chains can only operate at half their potential capacity. Vietnam’s ASEAN Free Trade Area (AFTA) membership roadmap will gradually reduce automobile import tarrifs to 0 percent between now and 2018. This means the domestic industry will have to gain a leg up on international competition. Challenges ahead In the first place, Quan says, it will have to overcome the shortcomings such as poor management, weak support industry, incomplete legislation and regulation, and lack of policy incentives, to attract sufficient investment. Vietnam’s transport infrastructure remains underdeveloped, and car owners are subject to three different taxes and five fees. Against this backdrop, local auto manufacturers will have to tailor their product ranges to fit in with the current stage of development. Vietnam Tax Consultants’ Association Chairwoman Nguyen Thi Cuc says domestically assembled cars are burdened with special consumption and value added taxes of 10 percent which are driving car production costs up but auto sales down. Vietnam Engine and Agricultural Machinery Corporation (VEAM) General Director Lam Chi Quang says car manufacturing must become more of a domestic industry to create employment, promote technology transfer, develop human resources,…... [read more]

According to the Vietnam Automobile Manufactures’ Association (VAMA), which represents the country’s 17 leading auto makers, the cost of fuel was also slowing down the growth of fuel-thirsty car sales, such as sports utility vehicles (SUV), multi-purpose vehicles (MPV) and commercial vehicles, which once led the overall sales.SUV/MPV and commercial vehicles registered only of 20 percent and 24 percent growth rate in July with 2,237 and 3,955 being sold, respectively said the association.Passenger car specialists Toyota retained top position, as it has for several years, selling 2,431 cars, up 37 percent year on year and accounting for 28 percent of the market share.Toyota’s growth is led by its seven-seat Innova, which scored record sales of 1,523 sold last month, followed by the five-seat Vios with 443 being sold.Truck and bus expert Vinamotor sold only 1,265 in July, accounting for 15 percent of the market share, followed by rivals Truong Hai, with 1,008 and a share of 11 percent.Honda has ousted Vidamco to drive into fourth position, thanks to outstanding sales of the Civic sedan, its only model, selling 746.Meanwhile, overall auto sales in the January-July period have registered an outstanding growth rate of 120 percent or 77,067 cars.However, auto sales were down 13 percent from June to July after the government raised several taxes in a bid to curb imports.While Toyota and Honda this month raised the prices of their vehicles, blaming the price hikes on input costs, Mercedes Benz and Ford reduced their prices.Toyota Vietnam announced a price increase…... [read more]

Gold Dragon awards went to73 foreign-invested businesses operating in the fields of banking-finance, insurance, cement and automobile manufacturing. Some of the winners include Chinfon Cement Company, Ford Vietnam Co. Ltd, and Lavie Co. Ltd. Professor Dao Nguyen Cat, Editor-in-chief of the Vietnam Economic Times, the main sponsor of the award, said the community of foreign investors is willing to share the burden of economic difficulties with their Vietnamese counterpartners through real contact with enterprise leaders and commit to doing long-term business in Vietnam. Foreign-invested businesses are playing an increasingly important role in the Vietnamese economy, especially in industry and exports, Cat noted. In 2012, foreign investors poured over US$13 billion into Vietnam, US$10.5 billion of which was disbursed. This was greatly appreciated given that the previous wave of foreign investment into the country is decreasing drastically due to the impact of the global economic downturn. Last year, the foreign-invested sector also reached an export turnover of over US$73 billion, equal to 66 percent of the country’s total export earnings. At the awards ceremony, 100 domestic businesses were also given Vietnam’s Strong Brand Prize in recognition of their efforts to deal with various economic challenges over the year.... [read more]

Sales of domestically assembled cars in the 17 months only rose 27%, while imported cars posted a 66% growth in the same period, according to the VAMA. Such a huge disparity was also recorded in separate months, the association added. In July, the growth of imported cars was 62%, compared to 24% for those assembled in Vietnam. The figures were 73% compared to 23% in May. Cars manufactured in ASEAN countries account for a considerable amount of the vehicles sold by VAMA businesses, as they are subject to a 50% import duty, instead of the usual 60%. ASEAN is a ten-member bloc which includes such Southeast Asian countries as Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei, Cambodia, Laos, Myanmar, and Vietnam. Ford Vietnam sold 1,287 cars in August, 394 of which were imported from Thailand, according to VAMA. Similarly, 423 out of the 3,615 units Toyota Vietnam sold in the same month were manufactured in Thailand. The VAMA businesses only sell made-in-Thailand pick-up trucks, as the vehicles are only subject to a 5% import duty. Vietnam imported more than 7,400 cars from Thailand in the Jan-Aug period, compared to 745 units from India, according to data from the General Department of Vietnam Customs. Some Vietnamese carmakers admitted that they mostly import cars from Thailand and Indonesia, where the automobile industries are highly developed. Vietnam imported 44,000 cars, worth $938 million, in the year to September, a 74 percent increase in volume and 90.2% rise in value compared to the same…... [read more]

Ford Grant 2006 is part of the Ford Motor Company's "Conservation and Environmental Grants," an annual global programme launched by the company to help conserve the environment and natural resources, as well as preserve cultural and historical heritage in more than 40 countries worldwide.This is the seventh consecutive year the programme has funded Vietnamese projects.Since 1999, it has helped implement 64 small- and medium-sized projects in 20 provinces and cities across the country by providing US$280,000 worth of grants.A number of these projects have yielded positive results, including a scheme to improve the environment in the paper-making village of northern Bac Giang province, a project to preserve the unique Khmer folk music of Robam in southern Soc Trang province, and a plan to revitalise the Thanh Dinh festival at Hung Temples in northern Phu Tho province.... [read more]

The total number of automobiles sold in 2016 by members of the Vietnam Automobile Manufacturers Association (VAMA) reached 304,427 units, up 24 per cent against 2015 and the highest in 20 years, the association announced on January 11. Sales in December alone stood at 33,925 units, up 17 per cent from November, of which 23,565 vehicles were assembled locally and 9,730 were imported. Sales of locally-assembled vehicles increased 32 per cent in 2016 as a whole while sales of imported vehicles rose 5 per cent. Among VAMA members, the Truong Hai Auto Corporation (Thaco) accounted for the largest market share last year, of 41.5 per cent, with 112,847 vehicles sold, while Japan’s Toyota sold 57,036 units, for a 21 per cent market share, and Ford Vietnam 29,011, for 10.7 per cent.... [read more]

Auto sales surge to all-time high Hung Le HCMC – Auto sales in Vietnam last year touched an all-time high of 300,000 units, the Vietnam Automobile Manufacturers Association (VAMA) said in a report issued on Wednesday. The report showed auto sales hit around 33,300 units last month alone, up 17% month-on-month and 13% year-on-year. Of the volume, there were some 22,840 passenger cars, 9,370 commercial vehicles, and 1,085 special-purpose autos. Notably, sales of passenger cars shot up by 27% compared to the same period of 2015 while sales of other vehicles changed slightly. The report said over 304,427 autos found buyers last year, up a staggering 24% over the year-ago period, with 182,347 of them passenger cars, up 27%, 106,347 commercial vehicles, up 25%, and 15,733 special-purpose automobiles, up 33%. VAMA said 228,964 domestically-assembled cars were delivered to customers, up a hefty 32% year-on-year, and 75,463 imported completely built-up (CBU) autos were sold, an increase of a mere 5%. Among VAMA members, Truong Hai Auto Joint Stock Company (Thaco) took the lead with its sales totaling 112,847 units, accounting for 41.5% of the market. Toyota Vietnam came second with 57,036 units sold, 21%, and Ford Vietnam third with 29,011 autos, 10.7%. The results went beyond expectations of automakers. Early last year, VAMA forecast an annual growth rate of around 10-15% in sales in all of 2016. Backed by the higher-than-expected results, auto makers may think of raising the ratio of local content. Vietnam’s auto market has registered strong growth over…... [read more]

The import tariffs for cars from Southeast Asia have been slashed and will be scrapped soon. Vietnamese consumers bought 304,427 cars last year, an all-time high in the country’s history, Vietnam Plus reported Wednesday, citing data from the Vietnam Automobile Manufacturers’ Association. Last year’s figure beat the previous record of 244,914 units sold in 2015, and nearly twice the number of 2009. Sales of cars assembled in Vietnam jumped 32 percent, while imported units saw a 5 percent year-on-year increase, the association said. Leading local carmaker Truong Hai Auto led the tally, moving 112,847 units in 2016 or 41.5 percent of the market. It was followed by Toyota Vietnam with 57,036 units, accounting for 21 percent of the market, and Ford Vietnam with 29,011 units, or 10.7 percent. Industry insiders expect sales of small cars to keep increasing sharply in the near future as Vietnam lowered its tariff rate from 45 percent to 40 percent last July and plans to cut it further to 35 percent in 2018. The policy applies to cars with engines smaller than 1.5 liters, which currently account for about half of the local market. Completely-built units from neighboring countries are given a more favorable treatment. Since January 1, cars from Southeast Asian countries have been subject to a 30 percent tariff, compared to 40 percent previously. This will be completely removed from 2018, as part of an agreement between regional countries. A booming economy has created more wealth for local consumers, who are switching from…... [read more]

Hanoi (VNA) – The total number of automobiles sold in 2016 reached 304,427 units, the highest level recorded by Vietnam’s auto market in the past 20 years, the Vietnam Automobiles Manufacturers Association (VAMA) announced on January 11. The figure is much higher than the previous records of 244,914 units in 2015 and 160,000 vehicles in 2009. According to VAMA, in December alone, the sales of automobiles in the domestic market were 33,925 units, up 17 percent from November. Of which 23,565 vehicles were assembled locally and 9,730 were imported. The sales of locally-assembled vehicles upped 32 percent in 2016, while the sales of imported ones increased by 5 percent. The Truong Hai Auto Corporation (Thaco) accounted for the largest market share of 41.5 percent with 112,847 vehicles sold in 2016. Japan’s Toyota sold 57,036 units, making up 21 percent of the market share, while Ford Vietnam’s sales were 29,011, equivalent to 10.7 percent of the market share.-VNA... [read more]

HA NOI - The Ministry of Finance has changed the way it calculates registration fees for new vehicles, a move expected to reduce expenses for car buyers. The new calculation is expected to enter into effect on January 1, 2017. According to a draft circular, the new calculation will be based on the cars' list price, and will thus drop five per cent every two years, until ten years from the production date. For example, if a new car version rolled out in early 2017 costs VND1 billion, the price of a new car of the same type but of an older version, made in 2011, will be VND850 million. Nguyễn Văn Nghĩa, a resident of HCM City's Thủ Đức District, told local media that he recently bought an imported Toyota Camry produced in 2013, but its registration fee was calculated according to the new price of the same kind made in 2016. The car's list price was VNĐ2 billion and he had to pay a registration fee of 10 per cent of the car value, or VNĐ200 million. "Under the new calculation,' he said, "if I buy the car early next year, I will have to pay only VNĐ180 million for the registration fee. I can save VNĐ20 million." "A buyer can save VNĐ40-50 million which depends on the car value," said Nghĩa. The marketing director of Ford Vietnam, Trương Kim Phong, said the new calculation would benefit customers, especially if they buy imported cars that are more expensive.…... [read more]