Foreign Carmakers to Sell Cheap Cars in Vietnam

Chinese carmaker Lifan and the Malaysian group JRD have unveiled plans to sell cheap automobiles in Vietnam next month, a move hoped to heat up the car market, downsizing due to sky-high prices.

 

The two carmakers intended to sell their products in Vietnam several months ago but encountered some hindrances, Lao Dong (Labor) Daily runs.

 

Lifan has met difficulties in customs procedures while JRD was slowed in assembly line import, it said.

 

Lifan will import its cheap cars from China next month to in order to fulfill placed orders, a company official said.

 

Chinese vehicle maker will import Lifan 520 compact sedans.  

 

Chinese vehicle maker is now running a motorbike factory in northern Hung Yen province. The company has decided to increase its investment in Vietnam by $200 million, totaling $500 million to date.

 

Meanwhile, JRD is 50-ha factory with an annual output of 30,000 units. It has sold thousands of cars to several large taxi firms in Vietnam.

 

According to the Vietnam Automobile Manufacturers Association (VAMA), car sales by its 16 member companies reached 40,853 automobiles in 2006, up 2 per cent on year. The on-year rise is mainly due to the rumor in December that the registration fee would be doubled to 10 per cent of the vehicle value. (Labour)