Despite Many Stimulating Policies, Automobile and Motorbike Market Remains Grey

Both enterprises and the Vietnam Automobile Manufacturers’ Association (Vama) forecast that in 2013, Vietnamese automobile market will warm up with slight growth rate against 2012. It’s just forecast since the market fluctuation depends completely on moves related to policies, which cannot be unpredictable.

 

Concerning policies, there are two notable issues which were mutually associated including:

Firstly, regarding industrial sector, the Government Office has issued the document announcing the conclusion of Deputy PM Hoang Trung Hai at the meeting on policies related to automobile industry. Deputy PM Hoang Trung Hai has requested ministries of Industry and Trade, Finance to continue to quickly implement tasks that the Minister directed and agreed with agencies on some specific contents related to automobile industry such as: Thoroughly analyze development status of automobile industry in the period 2001 – 2012; pros and cons of each current tax, fee, charge on finished automobile, sparse parts and accessories. Given that basis, calculate, forecast market demand until 2020 and vision to 2030. On the other hand, clearly identify development objective of automobile industry, explain for the decision of whether or not select the key automobile line and selection criteria, necessary policies to focus on development of this one. Especially, it is required to work out plans to adjust taxation policies, preferential ones etc for automobile sector, agenda for implementation of these given the principles of transparency, easiness to forecast and suitability toward integration requirement etc. High consensus and agreement have been received from automobile businesses on this issue.

 

Secondly, information related to adjustments in registration fee, especially in HCMC and Hanoi, is expected to be undertaken from March 15^th. Besides, bills related to prohibition of purchasing automobile, motorbike with cash etc are currently hot issues and drawing much attention of enterprises and people.

 

Contrary to continuous moves of policies, the market last month has seen sharp decline. Despite unavailability of information on sales from the Vietnam Automobile Manufacturers’ Association (Vama), it was released by some specific enterprises that the consuming power in February saw significant drop, like Toyota Vietnam had its sales down by a half (only sold over 1400 vehicles in comparison with nearly 3000 ones sold out in January 2013). All automobile businesses share the same situation of having sales fallen down. Moreover, the number of imported vehicles also fell to approximately 1000 with turnover value of US$18 million, only equating a quarter of that year by year.

 

Although the cause for such a decline is forecasted as February is often time of Tet and holidays etc, this consumption is still too low against the same period in previous years. Notably, this gloominess is forecasted to continue seeing increase in March, especially in HCMC and Hanoi. It is said by Toyota Vietnam’s representative, the market in March, especially in HCMC and Hanoi, is depending totally on adjustments in registration fee. If Hanoi and HCMC reduce registration fee, the market will warm up, otherwise it will still stay sombre since people will continue to wait? It should be noted about important information that these two markets account for a quarter to a third of the whole market’s total sale.

 

To boost up the market, firms are presently focus on releases of new automobiles, in which the core is introduction of new models such as small Suv of Ford, CRV 2013 of Honda etc. However, the expectation of businesses is still the stability, sustainability of relevant policies.