Precautions Raised against Incoming Chinese Cars in Vietnam

Vietnamese mass media and concerned people are calling on the Vietnamese public to increase precautions against Chinese cars of dubious quality once they are allowed to enter the country.

 

The forecasted coming flow of cars from the northern neighboring nation will bring big shifts to the Vietnamese auto market, which is reportedly being severely hurt by the government’s recent policies, including tax cuts and the entry of imported secondhand cars.

 

Low-priced Chinese cars are affordable to many people in Vietnam, especially those in rural areas, who cannot buy costly cars manufactured by foreign-invested joint ventures in the country.

 

However, the quality of Chinese autos imported into Vietnam is unascertained, especially safety criteria, local media said.

 

Recalling seven years ago, Chinese began exporting motorbikes to Vietnam, which most Vietnamese families could then afford, a situation which seemed out of reach previously.

 

With prices equal to less than half of those of Japanese-invested motorbike companies operating in Vietnam, Chinese motorbikes run on every corner of roads in Vietnam.

 

However, quickly-downgraded Chinese motorbikes have caused numerous deadly accidents in the country.

 

To date, Chinese-originated motorbikes seem unmarketable in Vietnam.

 

Vietnam now has some 30 enterprises assembling Chinese-originated cars, mainly trucks and buses, in Vietnam.

 

Only in 2005, four expected influential Vietnamese firms of Truong Hai Auto, VinaXuki, Tracimexco and Dacata launched respective Chinese car models such as the Foton, Jinbei, JAC and Chengjiang. Truong Hai Auto can make 25,000 cars a year while VinaXuki can manufacture 35,000 units and Dataco 6,000 units.

 

According to the Vietnam Register, 22.8 per cent of 59,200 autos manufactured in Vietnam in 2005 did not pass quality checks. Most of them were from Chinese car assemblers.

 

Apart from Chinese car assemblers, Vietnam is also home to 11 operational foreign-invested carmakers like Toyota, Ford, Mitsubishi, Mazda and Mercedes-Benz which usually have no flaws in their products.

Vietnam Economic Times