Sales of locally-assembled vehicles in Vietnam fell by 13.6% in March to 11,316 units, from 13,091 units a year earlier, according to data released by Vietnam Automobile Manufacturers Association (VAMA).
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The data is based on 17 of the country’s largest vehicle assemblers.
With exports accounting for over 60% of GDP, the country continues to feel the effects of the global economic slowdown. GDP growth declined to 6.2% in 2008, from 8.5% in 2007 and growth forecasts for this year vary significantly – mostly between 3-5%.
First quarter vehicle sales were down by almost 36% to 21,839 units, compared with 34,095 units a year earlier. Import sales were also sharply lower, estimated at around 3,000 units.
The vehicle market continues to be distorted by big changes in automotive taxation. Special consumption tax on large passenger vehicles was increased sharply at the beginning of April, which resulted in a small rush to buy SUVs and MPVs with engines larger than 2L in March.
As a result, sales volumes rose by almost 70% in March month-on-month, with assemblers such as Toyota and Mitsubishi making most of the gains. The sales improvement is expected to be short-lived, however.
Tony Pugliese
