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Vietnam’s cars and auto parts import on the rebound

Vietnam’s cars and auto parts import on the rebound

Monday 08, 11 2021
In October, CBU cars and auto parts import of Vietnam increased compared to the same period in 2020, as purchasing power is returning. Hyundai Thanh Cong Vietnam, Vinfast, and Toyota top the list of companies with the highest cars and auto parts import turnover.

Vietnam’s car market recovers

With the COVID-19 fourth outbreak under gradually control, Vietnam’s car market gained new growth momentum after five months of continuous rock bottom growth.

According to the latest sales report just released by the Vietnam Automobile Manufacturers Association (VAMA), in September 2021, the total sales of VAMA members reached 13,537 vehicles of all types, up 52% compared to August, equivalent to 4,653 vehicles.

Vietnam Automobile Manufacturers Association

With this result, it has been the first time in months that the car market of Vietnam achieved positive growth in terms of sales. With the fourth outbreak under control, lockdowns lifted, and social distancing eased over the country, favorable conditions were created for car dealers to reopen, boosting car sales.

In addition, the travel demand of the people increased, transport business cars, technology taxis were reopened in many provinces and cities after consecutive months of implementing pandemic prevention methods, which helped consumption of passenger cars and commercial vehicles to increase again. Among the 13,537 vehicles sold by VAMA members in September 2021, there were 8,347 passenger cars, up 34%; and 4,886 commercial vehicles, up 108% compared to August 2021.

Cars and auto parts import increase

Despite the complicated situation of the COVID-19 pandemic, Vietnam's auto imports are still growing impressively. In the first nine months of 2021, the total amount of imported cars is equivalent to 77% of the total import volume of 2020.

According to preliminary statistics, the import of CBU cars to Vietnam in October 2021 is estimated at 28,000 units, with a turnover of 566 million USD, up 222.8% in volume and 219.8% in turnover compared to September 2021; up 17.1% in volume and 20.4% in turnover compared to October 2020. Generally, in the first ten months of 2021, imports of CBU cars of all kinds to Vietnam were estimated at 142,377 units, with a turnover of 3.094 billion USD, up 1.5% in volume and 7.3% in turnover over the same period last year.

Import

Statistics from the General Department of Customs showed that imports of auto parts and accessories into Vietnam in September 2021 reached 286.9 million USD, down 19.4% compared to September 2020. Generally, in the first nine months of 2021, imports of auto parts and accessories to Vietnam reached 3.465 billion USD, up 39.5% over the same period in 2020.

Vietnam imported auto parts and accessories mainly from Korea, Thailand, China, and Japan in the first nine months of 2021, accounting for 83% of total import turnover. Notably, imports of auto parts and accessories from major markets all grew at double-digit rates in the first nine months of 2021 compared to the same period in 2020, with growth rates of 36.2%, 43.9%,54.4%, and 15.3%, respectively.

Particularly in September 2021, imports of auto parts and accessories from some markets into Vietnam grew at 3-digit rates compared to September 2020. For example, imports from Germany increased by 438%; the Netherlands increased by 646.4 %; the US increased by 289.6%; Turkey increased by 874.7%.

Top car companies

 

The sales of domestically assembled cars are overwhelming imported ones, which causes the import of auto parts and accessories to Vietnam to increase sharply. In addition, the result of the increase in the import of auto parts and accessories is evident in the production and sales of domestically assembled cars, which increased by 15%, while imported cars increased by 47% over the same period in 2020. That helps the largest auto distributors to record good growth in revenue and profit in the first half.

 

In 2020, the Government decided to reduce 50% of the registration fee for cars manufactured and assembled in the country, applied from June 29 to December 31, 2020. That had pushed the car market in the second half of the year to grow strongly. Therefore, with the pandemic being gradually controlled, it is expected that the Government will issue preferential policies to help the auto market in the last months of 2021 prosper. Accordingly, the import of auto parts and accessories is expected to increase again in the coming months.

 

Compiled by VietnamCredit

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