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BUSINESS REPORT

Picking up pace

Though experiencing its share of difficulties from the global and
local economic woes of recent times, Vietnam’s car market is
believed to hold promise as 2024 unfolds.
| By GIANG HOANG

oyota posted significant growth in During the four-month period when a per cent support in fees. Industry analysts
revenue in 2022, with 92,625 units 50 per cent cut in registration fees was believe such cuts will bring significant ben-
T sold, marking a 34 per cent increase applied, from July to October 2023, VAMA efits to the market, stimulating purchases.
against 2021. 2023, however, saw a reversal members witnessed a 31 per cent decline This policy is expected to address challenges
of fortunes, with sales falling to 59,207 in sales compared to the preceding four for domestic car producers and assemblers,
units, or a 36 per cent decline, according months and a 16 per cent decline year-on- mitigating the negative impact of the eco-
to the Toyota Motor Vietnam 2022-2023 year. A market downturn was confirmed in nomic downturn during the post-pandemic
Business Results Announcement. Similar April last year, when sales fell from 30,000 period and contributing to increased gov-
trends were observed at other automobile units in April 2022 to 22,409, or a 47 per ernment revenue. While previous fee reduc-
manufacturers, with Kia experiencing a cent decline. In May, the situation worsened tion measures in 2020, late 2021, and early
39 per cent decline in sales, Honda 36 per further, with a 52 per cent fall in sales. 2022 had a positive effect on the market
cent, and Mitsubishi 28 per cent. Hyundai In addition to government incentives, and consumer purchasing power, the cur-
also grappled with a sales slump, witnessing car manufacturers have also introduced rent policy, though impactful in boosting
a 25 per cent fall in sales to some 16,000 appealing bonuses in a bid to boost sales purchasing power, has not yet achieved
vehicles, according to a sales report from during these challenging times. Names expected sales volumes.
the Vietnam Automobile Manufacturers such as Ford, Mitsubishi, and Toyota have As Ford did not experience a decline in
Association (VAMA). Such notable sales offered to cover 100 per cent of registration sales, Mr. Ruchik Shah, General Director
declines have resulted in substantial inven- fees, while Honda Vietnam, Isuzu, Hino, of Ford Vietnam, said 2023 was a notable
tories being held at these companies. and Mercedes-Benz have maintained 50 year for Vietnam’s automotive market. The

30 | VIETNAM ECONOMIC TIMES | FEBRUARY 2024 en.vneconomy.vn