The number of cars sold in Vietnam increased sharply by 26% month-on-month to 24,002 in June, after surging 62% in May, according to monthly data from the Vietnam Automobile Manufacturers Association (VAMA).
|Number of car sales in six-month period. Source: VAMA.|
The volume included 17,584 passenger cars, up 35% month-on-month; 6,109 commercial cars, up 5%; and 309 special-purpose vehicles, up 18%.
The sales volume of locally assembled cars in June was 15,874 units, up 43% month-on-month, and that of imported cars was 8,155, up 21%.
Overall, car sales in Vietnam in the January–June period dropped 31% year-on-year to 107,183 units across all segments. Upon breaking down, 76,682 were passenger cars, down 32% year-on-year; 28,688 were commercial vehicles, down 25%; and 1,813 were special-purpose vehicles, down 40%.
Sales of domestically assembled cars reached 67,516 units during the period, down 43% compared to the same period of last year, while imported completely-built-units (CBUs) totaled 39,667 units, down 21%.
| Sales of imported cars down 21% year-on-year in January - June. Source: VAMA. |
Prime Minister Nguyen Xuan Phuc’s decision to slash the registration fee for domestically-produced cars by 50%, effective from June 28, is set to further boost sales of made-in-Vietnam cars in the two remaining quarters of this year.
Additionally, the deadline for payment of excise taxes for domestically-produced/assembled cars has been delayed until late 2020. The government said it would consider adjustments to the current excise tax policy to support domestic production.
From July 10, 2020, the government’s Decree No.57 amending and supplementing Decree No. 122, allows domestic assembling companies (meeting standards) to be entitled with 0% import tariff on raw materials, components and supplies which cannot be produced locally. The move is set to reduce production costs by 2-5%, so that selling prices can be consequently lowered in order to boost demand.
Statistics from the General Department of Vietnam Customs (GDVC) revealed in the first half of the year, Vietnam imported 39,000 cars worth US$879 million, down 47% year-on-year in volume and 47.7% in value.
In June, the number of imported cars declined 44.5% month-on-month to 3,000 units worth US$68 million, down 37.4% in value.