China's auto industry has made remarkable achievements in recent years, becoming one of the countries with the largest automobile production and sales in the world. In particular, China's car exports are leading the global market, but at the same time, the share of Chinese car brands in the Vietnamese market is relatively small. Despite the competitiveness and advantages of Chinese cars on a global scale, however, there are some difficulties and obstacles to enter the Vietnamese market.
First of all, Chinese car exports to Vietnam face high tariffs and lack of subsidies. In order to protect the local automotive industry, Vietnam imposes higher tariffs on vehicle imports, up to 80%. However, import duties on auto parts are relatively low, so many automakers choose to export parts to Vietnam for assembly to reduce costs. Correspondingly, Chinese cars are mainly exported to Vietnam as finished vehicles, without establishing local factories, resulting in high tariffs, making Chinese cars not cost-effective in the Vietnamese market. In addition, China's new energy vehicle manufacturers are supported by subsidies in China, but there is no corresponding subsidy policy for exports to Vietnam, and this shrinking profit also reduces the competitive advantage of Chinese cars in the Vietnamese market.
Secondly, the distribution system and after-sales service of Chinese cars in the Vietnamese market are not perfect. Vietnam's cars have a relatively long service life, and the market has high requirements for the quality and maintenance of cars. Due to the constraints of infrastructure and road conditions, Vietnam's cars need to be resilient and reliable. Japanese cars are popular in the Vietnamese market due to their durability and low maintenance costs, while Japanese and Korean automakers have established a well-established distribution and after-sales service network in the Vietnamese market. Relatively speaking, the share of Chinese car brands in the Vietnamese market is relatively low, and the corresponding dealership network and service system are relatively small, which also leads to Vietnamese consumers' concern about Chinese cars and their reluctance to buy Chinese cars without perfect after-sales service.
Finally, Vietnamese consumers are biased against Chinese brands. Due to historical reasons, Vietnamese consumers have some negative stereotypes about Chinese brands, especially in the motorcycle sector. In the 90s of the last century, China's motorcycle brands entered the Vietnamese market with low **, in order to pursue a larger market share, many domestic auto and motorcycle brands continued to lower **, resulting in a decline in product quality, and even some motorcycles had frequent breakdowns. This left a strong bad impression on Vietnamese consumers, leading them to have quality doubts and distrust of Chinese brand cars. Although China's auto industry has improved and upgraded a lot, Vietnamese consumers are still biased against Chinese brands, preferring to buy Japanese and Korean brands that are higher but considered more reliable.
Despite the multiple challenges faced by Chinese cars in the Vietnamese market, there are still some possibilities to overcome these obstacles.
First of all, Chinese auto brands can learn from their own experience and success in the European and American markets to establish a good brand image and reputation. Through its performance in the European and American markets, it can gain the recognition of the quality and performance of Chinese cars by global consumers, which can change the stereotype of Chinese brands among Vietnamese consumers. Once a good reputation has been established, Chinese car brands can consider opening factories directly in Vietnam to better meet the needs of the Vietnamese market and obtain a more competitive ** by offering locally produced vehicles.
Secondly, Chinese car brands can increase their market research and understanding of the Vietnamese market to better adapt to local needs. Understand the preferences and needs of Vietnamese consumers for product customization and market positioning. In addition, we have established a complete distribution network and after-sales service system to provide reliable maintenance services to meet the needs of Vietnamese consumers.
Finally, Chinese car brands can appeal to Vietnamese consumers by offering more choices and diverse products. Considering the demand for sedans among Vietnamese consumers, Chinese auto brands can launch more styles and models of sedans, covering different segments and configurations to meet the diverse needs of Vietnamese consumers for cars. In addition, China's new energy vehicle market is developing rapidly, and Chinese car brands can consider introducing more new energy vehicles into the Vietnamese market to meet the needs of Vietnamese consumers for environmental protection and energy saving.
In conclusion, Chinese cars have some potential in the Vietnamese market, but they also face some challenges. By establishing a good brand image and reputation, increasing understanding and research on the Vietnamese market, and providing diversified product choices and perfect after-sales service, Chinese auto brands are expected to overcome these difficulties and further expand their share of the Vietnamese market. At the same time, China's auto industry can also strengthen technical exchanges and cooperation through cooperation with local Vietnamese enterprises, and jointly promote the development of China's auto industry in the Vietnamese market.