Vietnam sees 480 pct surge in cars imported from China
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Vietnam imported 6,633 completely built-up (CBU) cars from China in the first four months, a 480 percent surge over the same period last year.
Industry insiders explain the increasing popularity of cars imported from China to good designs and modern features.
Despite the major increase, however, China remained the third-largest CBU car supplier for Vietnam in the first four months behind Thailand and Indonesia.
Thailand dominated auto imports with 25,732 vehicles, a 74 percent year-on-year increase, according to the General Department of Vietnam Customs. It was followed by Indonesia with 13,873 units, up 4.7 percent.
The two countries together accounted for 79 percent of April’s CBU imports.
Thailand and Indonesia have led the list of Vietnam’s car suppliers ever since the ASEAN Trade in Goods Agreement (ATIGA) took effect in 2018, owing to the zero import tariffs.
Vietnam’s total car imports in the first four months marked a 56.5 percent year-on-year growth at 50,161 vehicles.
The nation’s auto sales in the first four months surged 58 percent year-on-year to 101,309 units, signaling a recovery from last year’s pandemic blows.
Questions & Answers
Q.Why are cars imported from China becoming more popular in Vietnam?
Why are cars imported from China becoming more popular in Vietnam?
Industry insiders suggest the increasing popularity is due to good designs and modern features. These attributes are making Chinese-made vehicles more appealing to Vietnamese consumers.
Q.Which countries are the primary suppliers of completely built-up cars to Vietnam?
Which countries are the primary suppliers of completely built-up cars to Vietnam?
Thailand and Indonesia are Vietnam's leading suppliers of CBU cars. In the first four months, Thailand supplied 25,732 vehicles and Indonesia 13,873 units.
Q.What is the reason for Thailand and Indonesia dominating Vietnam's car import market?
What is the reason for Thailand and Indonesia dominating Vietnam's car import market?
Their dominance stems from the ASEAN Trade in Goods Agreement (ATIGA), which came into effect in 2018. This agreement allows for zero import tariffs on vehicles from these countries.
Q.What does the overall increase in car sales indicate for Vietnam's automotive market?
What does the overall increase in car sales indicate for Vietnam's automotive market?
The 58 percent year-on-year surge in auto sales, reaching 101,309 units, signals a recovery for the market. This suggests the industry is bouncing back from last year’s pandemic impact.
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