Vehicle sales in Vietnam fell 21% in the first two months of this year to 2,984 units, compared to a year earlier, according to the Vietnam Automobile Manufacturers Association.
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Reuters said that sales in Vietnam have been falling since the beginning of 2005 when higher consumption taxes were imposed on domestic vehicles. A decision to cut tariffs on imports from last 1 January also encouraged potential buyers to delay purchases. Consumption taxes on imported vehicles were also cut from 80% to 50%, similar to the rate applied to locally-assembled vehicles.
The top-selling brand in January-February was Toyota, with sales of 1,470 units, giving it a market share of 49.3%.
Ford sold 548 vehicles, giving it a share of 18.4%.
Both Toyota and Ford reported an increase in sales, while most other makes experienced decline.
Reuters noted that per capita income in Vietnam is just US$500, but its car prices are amongst the highest in the world, with a Toyota Camry retailing at three times the price asked in Japan.
A change in the market could come from 1 May , when used car imports will be allowed for the first time. A tariff level has not yet been set, although the finance ministry has proposed 150%.
