Car ownership ratio remains low
Despite the car industry's high growth rate, car ownership in Vietnam is still low compared to neighbouring countries, according to the survey by the marketing strategy consulting firm Solidiance.
As of 2016, about 211,000 vehicles were registered in HCM City and 291,000 in Hanoi. 600,000 cars were sold in remaining provinces and cities.
Cars from Japan and South Korea were favoured in Vietnam. Customers now have more choice as more European car brands have appeared in Vietnam such as Renault and Volkswagen.
However, the car ownership ratio in Vietnam is only 16 cars for 1,000 people. This rate is lower than Malaysia's 341 cars, Thailand's 196 cars and Indonesia's 55 cars.
According to Solidiance, one of the reasons is because prices are still high. Car manufacturing, as well as supporting industries, are still weak so Vietnam has to import completely built units. Moreover, poor infrastructure and constant congestion have discouraged people from buying cars.
It is predicted that the demand will continue to rise with steady economic growth and increasing personal incomes. Import taxes will be reduced or lifted from 2018 after Vietnam joins various trade agreements such as the ASEAN Trade in Goods Agreement. As a result, the car prices will fall and become more affordable.
Vietnam's car ownership ratio is low
As of 2016, about 211,000 vehicles were registered in HCM City and 291,000 in Hanoi. 600,000 cars were sold in remaining provinces and cities.
Cars from Japan and South Korea were favoured in Vietnam. Customers now have more choice as more European car brands have appeared in Vietnam such as Renault and Volkswagen.
However, the car ownership ratio in Vietnam is only 16 cars for 1,000 people. This rate is lower than Malaysia's 341 cars, Thailand's 196 cars and Indonesia's 55 cars.
According to Solidiance, one of the reasons is because prices are still high. Car manufacturing, as well as supporting industries, are still weak so Vietnam has to import completely built units. Moreover, poor infrastructure and constant congestion have discouraged people from buying cars.
It is predicted that the demand will continue to rise with steady economic growth and increasing personal incomes. Import taxes will be reduced or lifted from 2018 after Vietnam joins various trade agreements such as the ASEAN Trade in Goods Agreement. As a result, the car prices will fall and become more affordable.
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