Vietnam's Car Sales Plummet, Imports up

Vietnam's Car Sales Plummet, Imports up 

Sales on domestically assembled units for automakers in Vietnam are down for February year on year, according to the Vietnam Automobile Manufacturers Association (VAMA).

Vietnam's 11 joint-venture car makers sold a combined 1,397 vehicles in the second month of 2005, down 43 percent over last year, the VAMA said.

However, total sales of Vietnam’s 11 VAMA members over the first two months of the year reached 3,767 units, up 11 percent.

A VAMA spokesman attributed the loss to the increase of complete built unit (CBU) car imports, which reached 2,000 units in the first two months of the year.

Meanwhile, car dealers blamed slow sales on this year's longer Tet (Lunar New Year) holiday, which meant fewer business days, and the 10-25 percent increase in car prices due to the increase in import tariffs on automobile parts and components.

Separately, Honda Vietnam is set to become the second company in Vietnam producing both motorbikes and cars after Suzuki Vietnam.

The country's leading motorbike manufacturer has been given the go-ahead by the government to expand into automobile production for the first time with an annual capacity of 15,000 cars.

The Japanese company will also be allowed to increase its investment capital from US$151.2 million to US$209.2 million.

Vietnam has 11 joint-venture auto makers with a total investment capital of over US$500 million, and a combined annual production capacity of 148,000 units. There are also more than 160 domestic auto parts makers in the country.

• Young People Online