In March, Vietnam spent US$347 million on importing 17,000 cars, a surge of 69.3% month-on-month in volume and 66% in value, according to the General Department of Vietnam Customs (GDVC).

Car imports at Hai Phong port. Photo: Kinhtedothi

Such figures are nearly the combined imported number of cars in the first two months of the year which is 18,382 units and US$421 million.

This resulted in 35,367 cars imported to Vietnam in the first quarter of the year worth US$770 million, up 31.1% year-on year in volume and 35% in value.

According to the GDVC, 90% of imported cars in Vietnam in the January – March period were from Thailand, Indonesia and China, while the rest were from Japan, the US, Europe and South Korea.

A sharp increase in the number of cars imported to Vietnam came as a surprise as the local car market continues to struggle with the Covid-19 impacts.

A report from the Vietnam Automobile Manufacturers’ Association (VAMA) revealed the car sales in February declined 22% against the previous month, marking the second consecutive month of market decline with a contraction of 45% month-on-month in January.

However, experts also suggested demand for cars would eventually bounce back, especially as production and business activities are returning to normal at a time when the country puts Covid-19 under control.