Crisis in Vietnam’s automotive industry

Hanoi (AsiaNews / Agencies) - In the first six months of 2009 the automotive industry of Vietnam has registered a decline in sales of 30% compared to 2008. So reports the association of car manufacturers in Vietnam (Vietnam Manufactures Automobile Association), which attributed the fall in demand for cars to the global economic crisis.

After last year’s record with 110, 186 cars sold, representing a sector growth of 37%, sales for 2009 currently stand at 47, 909 units.  Sellers fear further declines over the next few months, due to the downturn in consumption that has affected the market for high value goods such as cars and buildings.

The hardest hit car is the Japanese Toyota, which suffered a sales decline of 13% (9,699 units).

In support of the sixteen car manufacturers operating in the country, the government halved the tax on value added, increasing it to 5%. This has allowed a controlled contraction of sales in June to a drop of 1% compared to June 2008.

Mindful of the global crisis, the Vietnamese government estimated for the first six months of 2009, a growth of the national economy amounting to 3.9%, halved compared to the 6.5% recorded last year.

Despite these low estimates, the carmaker Nissan Vietnam, a share holder in the Japanese Nissan Motor Co, has announced the 2010 opening of the first factory for local assembly of vehicles.