Imported automobiles, both old and new, are putting greater pressures on Vietnam-based carmakers as new inflows are to arrive in the country soon, local media forecast.
Secondhand cars, which were officially granted import licenses from May 1, 2006, have been selling very well in Vietnam in spite of their high prices due to taxes, it said.
All vehicles imported via Haiphong and Saigon international ports have been sold immediately after the customs formalities were cleared. However, imported used cars come in quite small volumes.
Meanwhile, Chinese automobile and motorbike maker Lifan unveiled a plan to sell low-priced brand-new automobiles in Vietnam, threatening the market shares of all carmakers in the country.
Lifan said in a recent introductory ceremony in Hanoi that the price of its LF7160 sedans is around $16,000 each, much lower than those offered by foreign-led carmakers for a similar product.
The Vietnamese-run Truong Thanh, which assembles Chinese cars, is offering Soyat sedans at $11,500 and Gonow sedans at $19,500 each.
According to the Lao Dong Daily, many company members of the Vietnam Automobile Manufacturers Association (VAMA) are preparing shops to sell Chinese cars once the low-priced vehicles are permitted to be imported.
The Vietnamese auto market has seriously been downsized by import policies, including the market opening for used cars. Thanks to the high taxes on imported cars, the car market has signaled revival.
Vietnam now has some 200 carmakers and parts suppliers but the auto industry is strongly dominated by 11 foreign-invested firms, including Toyota, Ford, Mitsubishi and Daewoo, which are also members of the VAMA. The VAMA also has five Vietnamese-invested carmakers like Samco, Vinaxuki, Truong Hai Auto and VEAM.
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