~ Le Viêt Nam, aujourd'hui. ~
The Vietnam News

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[Year 2002]

Vietnam vehicle sales grow 37 percent in 2002

Sales of vehicles produced in Vietnam rose over 37 percent last year buoyed by rising personal incomes and slashed vehicle prices, an industry association said. The Vietnam Automobile Manufacturers Association (VAMA), made up of 11 foreign-invested companies, said 26,878 units were sold in 2002, compared with 19,559 the previous year.

In December alone, the 11 companies sold 3,780 vehicles, a rise of 56 percent over the same period in 2001, it said. Nearly all the vehicles produced by the foreign-invested firms are for the domestic market.

VAMA consists of individual manufacturers such as Isuzu, Toyota and Ford as well as companies assembling a variety of different brands under licence. In 2001, more than 22,000 vehicles were imported into the country, according to Vietnam's industry ministry. Figures for last year are not yet available. The manufacturers' association, which had targeted 25 percent sales growth for 2002, said it had benefited from growing domestic demand.

"There has been a big rise in the number of private customers, while cuts in the prices of vehicles by several manufacturers in the second half of the year have helped," a VAMA official said. "Consumers are also showing their satisfaction with the variety of cars and other vehicles to choose from." Mercedes-Benz, which set up its joint venture operations in the communist nation in 1995, said its vehicle sales had risen over 40 percent to more than 2,600 units. "We have grown faster than the market in terms of sales volume," its Ho Chi Minh-based sales manager said. The government said last year it expects new auto sales to reach as many as 100,000 annually by 2010 and 300,000 by 2020 as personal incomes rise and road networks improve.

Last month the government announced an unexpected doubling of tariffs on imported car parts from January 1 to 40 percent. However, the tax hike was subsequently suspended following pressure from VAMA members. According to the General Office of Statistics there are around 530,000 vehicles in the Southeast Asian nation compared with nearly 10 million motorcycles.

Agence France Presse - January 09, 2003.