Automotive Market Report: Opportunities in Vietnamese Car Market and Aftermarket

Sept. 25, 2008 - PRLog -- http://www.globis-berlin.de/de/Marktforschung/Studien_und_Reports/Automotive_Research_Reports/Vietnamese_Automotive_Market/index_html

Berlin, August 2008: The Vietnamese new car market is one of the fastest growing in ASEAN and total Asia. The main driver is the car penetration rate of 3 cars/1.000 inhabitants, which is very low even compared to other developing countries. AFTA provides excellent opportunities for a potential production base. Given the young age of the Vietnamese automobile market, all segments show attractive opportunities.
Globis GmbH, a German consulting company, has analyzed the Vietnamese automotive market in a comprehensive research report.

With a GDP per capita of 833 USD and an average annual income of 536 USD, Vietnam is a poor country. Only a small fraction of Vietnam’s population is able to afford a car. As a consequence, Vietnam shows one of the lowest car penetration rates in the world with 3 cars/1.000 inhabitants.

„Notwithstanding the low average income and the very high car prices, the passenger car market is booming since 2007, when new registrations doubled“, argues Felix Kuesell, managing director of Globis who released the report. The new car market shows double-digit growth rates up to 35% p.a. since 2003. At that time, the local market opened for imported new cars and since 2006 also for certain used car imports. Despite the expected positive development – we estimate a growth rate of 17% p.a. until 2010 – the Vietnamese governments latest plans regarding import licences, tariffs, taxes and registration fees are a major factor of uncertainty.
Currently, duties and taxes for new cars are increasing and often reach more than 100%.

In line with the low car penetration, the car parc is still small and young. Although the aftermarket is growing fast with growth rates over 20% p.a. until 2010, the segment is still small. Market structures are just forming and there is great value to be generated for suppliers by entering early. However, incipiently turnover will be limited.

There are several OEMs active in Vietnam, mostly through manufacturing joint ventures with state-owned companies. Foreign investments of OEMs, suppliers or spare part manufactures are attractive with regard to Vietnam’s membership in AFTA, which enables access to a market of about 500 mio. people.

The Globis market report „Vietnamese Automotive Market: Passenger Cars, Suppliers and Aftermarket, 2007/2008-2010” analyses in depth current developments of the Vietnamese automotive market. It covers 79 pages and includes 44 tables and figures. The report is available at 890 € and can be ordered directly at Globis (for more information, visit the Globis website www.globis-berlin.de).

Globis GmbH, Berlin, is a research and consulting company with multi-lingual analysts and consultants and a broad base of interviewers. Market entry strategies are a speciality of Globis.

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E-Mail: ekraus@globis-berlin.de
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Globis GmbH, Berlin, is a research and consulting company with multi-lingual analysts and consultants and a broad base of interviewers. Market entry strategies are a speciality of Globis.