The auto market is expanding in Vietnam with the total sales volume estimated to reach 100,000 units by 2010, said Lee An Hwan, deputy general director of Hyundai Motor in Asia region.
The car market in the developing country will boom as its annual GDP per capita hover at US$3,000, he said.
“The largest cities in Vietnam now report a GDP per capita of US$1,500-2,000. Hence, it takes several years to see a car market boom.”
Further, the potential Vietnam with a population of over 80 million people and an annual economic growth of some 8 per cent will enjoy much lower car price rates which are now reported to be 1.5-2.5 times higher than regional average.
However, at least from now until 2010, the fast-growing economy will hardly see a car boom because of the high tax barrier and poor transport system.
Lee said Hyundai Motor is considering the assembly of automobiles in Vietnam where consumes some 40,000 cars a year. “The final decision about the project will be made by the end of this year,” he added.
However, if the export of Hyundai vehicles from ASEAN countries into Vietnam brings in more profits than the assembly, Hyundai will choose the second option, he noted.
At present, Vietnam is home to nearly 50 automakers but the auto industry is in the hands of 12 foreign-led carmakers like Toyota, Ford, Mercedes-Benz, and GM-Daewoo.
The Southeast Asian nation now has nearly one million automobiles of all kinds in the circulation.
Motorbikes are now the king on the roads in Vietnam with around 17 million in use.
VietNamNet
Vietnamese
