Vietnam: Most attractive automobile market in ASEAN?
Vietnam: Most attractive automobile market in ASEAN? :- According to a report of the Vietnam Automobile Manufacturer’s Association (VAMA) of the first eight months of 2016, the VAMA member companies sold around 187,407 cars of various kinds and witnessed an increase of 32 cars as compared with the same period, last year.
The Vietnamese market
The market has witnessed a sharp increase in sales in both domestically assembled cars and CBU imports (complete built units) with the growth rates of about 35 percent and 25 percent, respectively.
If the number of cars sold is to be considered, Vietnam would still be considered a small market.
According to the OICA (International Organization of Motor Vehicle Manufacturers), Vietnam bought a total of 210,000 cars in 2015, only one-fourth of Thailand’s where, 798,000 cars were sold in the same year.
Meanwhile, Malaysia- the second largest market in the region, sold around 666,000 cars and the Philippines sold around 289,000 cars.
The most attractive automobile region
However, Vietnam is referred as the market with the highest growth rate in the region. While Thailand, the largest market, has had a sharp fall in its sales, both Malaysia and the Philippines have had a slow growth, however Vietnam has been growing strongly.
According to the OICA, number of cars sold in the Vietnam region last year have nearly doubled. In 2014, 134,000 cars were sold in Vietnam and in 2013, merely 97,000.
Vietnam has been considered as an emerging market which attracts special attention from the investors. According to the Confidential Research of The Financial Times, the Vietnamese automobile market has gained a surprising growth.
Listed as one of the poorest countries in the South East Asia, along with Myanmar, Cambodia and Laos, Vietnam has the most attractive automobile market.
The total number of cars sold in Vietnam accounts for about 6.8 percent of total sales in the ASEAN group, which comprises of five countries, namely Indonesia, Malaysia, the Philippines, Vietnam and Thailand.
Daisuke Yamada, a Senior Director representative of the LCV (light commercial vehicle) products of Isuzu Vietnam, said that Vietnam is a market with high potentiality.
He said that the Vietnamese automobile market has been immensely growing since 2015. And as for Isuzu, it is the time to start for the Vietnamese market.
“Isuzu is gathering its potential and strength to make a grand comeback to the Vietnamese market,” he added, and also said that from now on, Isuzu considers Vietnam as an important market in the region.
Isuzu plans to boost the sale of the LCV, including the pick-ups and SUV’s.
According to the Analysts
Analysts say that it is still difficult to predict how the market would perform in future as it bear influences from the adjustments of different tax policies.
However, all over it would still see a high growth as majority of the Vietnam people prefer small cars by which they can enjoy preferential tax rates.