Vietnam imports over 300 cars from Thailand, Indonesia per day

In the first nine months of 2019, Vietnam imported over 94,300 cars from Thailand and Indonesia worth nearly US$1.6 billion, equivalent to over 10,500 cars per month and 333 per day, according to the General Department of Vietnam Customs (GDVC). 

In September, the number of cars imported from Thailand to Vietnam reached over 5,500 cars while that from Indonesia is 3,700, mainly passenger cars and pickup trucks with localization rate eligible to 0% import tariff under the ASEAN trade agreement (ATIGA). 

Meanwhile, the combined number of passenger cars assembled in Vietnam by Truong Hai Auto Corporation (Thaco) and Hyundai Thanh Cong, the nation's biggest car manufacturers, is nearly 100,000 cars, slightly higher than the imported number from Thailand and Indonesia, indicating domestically assembled cars are under growing competition from imported ones. 

Most imported cars are from brands such as Toyota, Honda, Ford and Mitsubishi, particularly models with high sale numbers as Honda CRV, Toyota Fortuner, Mitsubishi Xpander, or Ford Ranger, among others. 

Moreover, the majority of car dealerships in Vietnam are operating as import channels. For example, Toyota maintains the number of imported cars equal to two thirds of the sale number; Honda and Ford import three out of their respective six models. 

Thaco also imports cars from BMW or Mazda BT50, and assembles other models from Kia and Mazda, while VinFast, in addition to its own Vinfast cars, also imports car models from Chevrolet. 

In the past, the number of cars imported to Vietnam remained at modest level with brands such as Honda, Toyota and Ford, due to high import tariffs. However, over the last two years, there has been a growing number of imported cars from Thailand and Indonesia, as costs for domestically assembled cars are higher than imported ones, not to mention the removal of import tariffs. 

Statistics from the Vietnam Automobile Manufacturers Association (VAMA) showed the imported cars number in the January – September period increased three fold year-on-year and the sale of imported cars also increased by 56,000 cars year-on-year. 

With high domestic demand, VAMA expected the number of car sales in Vietnam to exceed the estimate of 350,000 cars and reach the 400,000-mark by year-end.

Ngoc Thuy