During the first eight months of 2019, Vietnam imported 88,000 vehicles valued at US$1.94 billion, accounting for increases of 366% and 319% respectively, compared to the same time period last year.
The massive growth, as reported by VnExpress, stands in stark contrast to last year's downturn when the country imported 49% fewer cars compared to the first six months of 2017. That plummet in sales was attributed to stricter regulations requiring certification of sales from exporting countries.
Now that foreign manufacturers in the region have adapted to the new regulations, they are once again able to more easily reach the Vietnamese market. Thailand, Indonesia and China represent the largest exporters, followed by South Korea and Japan.
Despite the positive sales, local dealers are bracing for a slow August. People tend to avoid purchases during the seventh lunar month, or "ghost month." One showroom owner in Saigon told the news source that sales typically fall 30–40% during the period and people will select cars but wait until the following month to actually purchase them.
Vietnam is currently Southeast Asia's fifth-largest market for cars. Despite decrying last year's new regulations as unfair tariffs that should be removed as Vietnam further integrates in trade deals, foreign automakers are optimistic about the country's car purchasing power. And while VinFast aims to change the situation, only 10% of cars purchased in Vietnam are fully assembled here.
[Photo via Pixabay]
