The Vietnam car market falls to fifth place in Southeast Asia.

According to the Association of Southeast Asian Automobile Manufacturers (AAF), Indonesia sold 505,000 cars in the first half of this year, which is 6.3% more than the same time last year. 

Thailand was in second place with 406,000 units, which is a small drop of 5%. Malaysia was in third place with 366,000 units, which is a rise of 10.3%. The Philippines moved up from fifth to fourth place with 202,415 cars sold, a big jump of 30.7%. At the same time, Vietnam fell to fifth place with 137,327 units, 32% less than the same time last year.

Insiders in the industry say that the war between Russia and Ukraine and global inflation have both had an effect on Vietnam's car sales, along with other bad events. 

These things made people less confident and less able to buy things, which caused fewer people to buy cars.

In August, sales of cars in the United States dropped almost 27% year-over-year to 22,540 units, as people continued to cut back on spending because of the bad economy. August sales were not as high as those in June and July.

The drop in car sales is partly due to problems in Vietnam's economy and markets, which have affected people worldwide. The economy of Vietnam is still growing compared to some Southeast Asian countries, so people may not have as much money to spend or as high of a standard of living.

The head of the Vietnam Auto Motorcycle and Bicycle Association (Vamoba), Pham Cuong, said that Vietnam's car prices are higher than those in other countries in the region because the country's price policy isn't stable. This difference in prices, along with the small number of car types available, can make it harder for people to buy cars they want.

The Vietnam Automobile Manufacturers Association (VAMA)'s Dao Cong Quyet said that Vietnam caught the COVID-19 outbreak later than other Southeast Asian countries, which made its comeback take longer. Because of this, Vietnam may need more time to show signs of improvement in the general usage of goods, such as cars.

Southeast Asian countries have 30–40% lower car prices than Vietnam, according to Nguyen Minh Dong, an expert on cars. Furthermore, Vietnam's pricing policy is not steady. With more car types available, buyers in these countries have more options. Dong suggested that special usage taxes and some fees and charges for cars should be waived or lowered to encourage more people to buy them.

As Tran Thanh Tung, head of the Business Administration department at Ho Chi Minh City University of Economics and Finance, pointed out, the drop in car sales in Vietnam is not always seen as a bad sign.

Experts have suggested that to stop people from buying fewer cars, special spending taxes and fees should be removed or lowered for cars, more car models should be available, and car loan policies from other countries in the area should be studied. For better conditions for customers and to boost the market, these steps are being taken.

Source: Vietnamplus