Posted on 02 Oct 2009
Auto imports fell sharply in August after a busy July, which saw a record 8,700 units imported to
In August, only 7,300 units were imported with a total turnover of around US$107 million, said the General Statistics Office (GSO).
The numbers were down 16 per cent in volume and 10 per cent in value.
Experts were taken by surprise by the dip, following six months of growth in the number of cars coming into the country. Such a decline was puzzling as the domestic auto market had remained buoyant, they said.
Domestic auto manufacturers have failed to meet demand, so the numbers of imported units have increased.
"It’s hard to clearly explain why the number of imported cars decreased in August, because drawing any firm conclusions based on just a single month’s results is difficult," said Nguyen Trung Hieu, an official from the Viet Nam Automobile Manufacturers Association (VAMA).
"My personal opinion is that importers brought a large number of cars into the country over the previously months, and they need time to sell them," he said.
However, Hieu added, time was needed to exactly identify the cause.
"There may be some problems a continuous decrease is registered in the comings months. But if it stops, it may be the market changing," he said.
Due to the reduction on car imports in August, the GSO forecast that the volume of autos imported in September was likely to be about 7,300 units, the same as August.
By the end of August, the industry imported 39,600 autos, nearly reaching the import target set for this year of 40,000 units.
Import value is three times higher than planned. In just eight months, the country poured $632 million on imported cars, compared with the plan’s predicted $200 million.
In an attempt to curb the trade deficit, the Ministry of Industry and Commerce has proposed to raise import taxes on cars with less than 15 seats from the current 83 per cent to 91 per cent.
