Vietnam Autos Report - Business Monitor International - Industry Reports

Vietnam Autos Report

Vietnam Autos Report - Business Monitor International - Industry Reports
Vietnam Autos Report
Published Aug 13, 2016
33 pages — Published Aug 13, 2016
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Taxes on cars with engines of less than -.- litres will drop from -- to -- . ...Vehicles with an engine capacity above -.- litres will see their tax rate rise to between ------ from the previous -- . We had previously highlighted that once approved, this new tax regime would be a boon for the small engine passenger vehicle segment, and we believe this tax structure will provide a boost to sales of cars with engines less than -.- litres over our forecast period ---------. Vietnam s passenger vehicle sales posted robust growth of --.- y-o-y in -M--. ...For ----, BMI s Country Risk team forecasts strong private consumption growth of -.- and this will filter into passenger car demand. Vietnam s strengthening consumer base has having ramped up its borrowing, often to fund aspirational purchases such as a new car, and we expect this trend to continue as employment

...We believe that Vietnam s large population, rising affluence, and sustained remittance inflows are among the factors that will keep private consumption growth robust at an average of -.- per annum over the next decade. ...Further adding to the bullish picture for sales is the recent Trans-Pacific Partnership (TPP) trade deal, which was signed in Auckland by -- countries (including Vietnam) in February ----. While the deal still requires ratification from each member state s government, a process that is expected to take up to two years, if it is put into practice it will help open up Vietnam s booming passenger car market to yet more international car makers operating across the TPP region by removing significantly large tariff barriers on imported vehicles. As a result, the added competition would also encourage further declines in prices and encourage more consumers to purchase new vehicles. ...We are expecting new vehicle sales to show growth of -- , to take total new vehicle sales to above the ---,--- unit mark by ----. We expect stronger growth in passenger car sales than in commercial vehicles over the --------- period, as incomes rise and tariffs on imported cars continue to fall.

...This quarter, we maintain our forecast for at least --.- growth in Vietnamese new vehicle sales in ---- , with risks to the upside given strong domestic demand. We believe that there will be stronger growth in passenger car sales than commercial vehicles. ...Vietnam s new vehicle tax structure based on engine size will lead to a shift in consumer demand. Small size engine sedans and hatchbacks will see stronger sales gains as tax cuts on these vehicles lead to falling prices on these vehicles compared to prices of larger SUVs and crossovers. We also believe that these lower taxes will lead to a welcome reduction in the age of Vietnam s national automobile fleet. ...

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Business Monitor International - Industry Reports—Established in 1984, Business Monitor International is a leading online publisher of specialist business information on global emerging markets. Business Monitor's range of quarterly services covers political risk, finance, macroeconomic performance, outlook and forecast, industry sectors and the business operating environment. Each Industry Report has been researched at source, and features latest-available data covering production, sales, imports and exports; 5-year industry forecasts through end-2012; company rankings and competitive landscapes for multinational and local manufacturers and suppliers; and analysis of latest industry developments, trends and regulatory changes.

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Business Monitor International - Industry Reports. "Vietnam Autos Report" Aug 13, 2016. Alacra Store. May 25, 2018. <>
Business Monitor International - Industry Reports. (2016). Vietnam Autos Report Aug 13, 2016. New York, NY: Alacra Store. Retrieved May 25, 2018 from <>
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