New vehicle sales in Vietnam almost tripled to 13,091 units in March compared with 4,469 units sold a year earlier, according to data released by the 16 member companies of the Vietnam Automobile Manufacturers Association (VAMA). This is a record month for the country’s auto market and marks its 20th successive month of growth. Demand for commercial vehicles has been particularly strong.
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In the first three months of the year vehicle sales jumped by 180% to 34,095 units, making Vietnam the fourth-largest automotive market in the ASEAN – ahead of the Philippines and Singapore. The only ASEAN markets larger than Vietnam during the quarter were Thailand, Malaysia and Indonesia.
Market leader was commercial vehicle maker Viet Nam Motors Industry Corporation (Vinamotor), which sold 7,710 Hyundai-based commercial vehicles during the quarter. Toyota was second-placed with 5,631 sales, followed closely by Truong Hai 5,476 Kia-based commercial vehicles.
Vietnam has one of the fastest-expanding economies in Asia, with GDP growth at 7.43% in the first quarter – driven by strong industrial output, strong export growth and a booming construction sector. But there is increasing apprehension about the sustainability of recent growth rate and a second-half slowdown looks increasingly likely for the vehicle market.
Strong growth in domestic demand and fast-rising energy and commodity prices drove inflation up to a high of over 16% during the quarter. This, along with the potential for a slowdown in key export markets, is seen as the biggest threat to the country’s economy in the short term. The government this month revised down its full-year economic growth forecast to 7.5%, from 8.5-9.0%, while the Asia Development Bank now expects 2008 growth to be 7.0% rather than 7.5%.
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By GlobalDataTony Pugliese
