According to the General Statistics Office, Vietnamese spent US$133 million on importing 5,493 cars in February, an 86% increase over the same time period last year.
And if you thought that was a lot, this figure is only half that of January when Vietnamese imported 9,596 cars valued at US$185.7 million into the country. The month-over-month drop was attributed to poor sales over the Tet holiday.
With rising incomes, Vietnamese have more disposable cash to buy big-ticket items like cars. Last year, Vietnam imported over 66,025 of them, nearly double that of 2013. And the trend is likely to really take off this year as taxes on vehicles built in ASEAN nations will drop to 50% under the ASEAN Trade in Goods Agreement (ATIGA). This figure will fall to 40% in 2016, 30% in 2017 and hit zero by 2018.
But for now, cars are still a luxury for the majority of Vietnamese who, on average, would have to save for 26 years to buy one.
If you have enjoyed our work and believe that Saigoneer’s voice is an important one to have, please consider supporting us. Pledge any amount you’re comfortable with in the form of a one-time or recurring donation so we can continue bringing you the stories you love to read.
