With the continuous rise of China's automobile industry, China has become the world's largest automobile production and sales country for more than ten consecutive years, and has also surpassed Japan to become the world's largest automobile exporter. Although Chinese automobiles have performed well in the markets of Europe and the United States, it is difficult to open up the market in neighboring Vietnam. This article will analyze the reasons why it is difficult for Chinese cars to enter the Vietnamese market from various aspects, such as tariff and subsidy protection, distribution system and after-sales service, and Vietnamese consumers' prejudice against Chinese brands, and propose possible solutions. It is hoped that through the discussion in this article, it can provide some useful inspiration for Chinese auto companies to explore the Vietnamese market.
One of the biggest obstacles to the export of Chinese cars to Vietnam is the high tariffs. In order to protect Vietnam's auto industry, Vietnam has set tariffs of up to 80% on the import of finished vehicles, while the import tariffs on auto parts are relatively low. As a result, some automakers export parts to Vietnam and then assemble them locally to reduce costs. In contrast, China's automobile exports are mainly based on finished vehicles, and no vehicle factories have been established in Vietnam, so they have to pay high tariffs, which leads to the lack of competitiveness of Chinese cars in the Vietnamese market. In addition, Vietnam does not provide corresponding subsidy policies for imported cars, and many new energy vehicles exported by China rely on the promotion of subsidies, which also further reduces the competitive advantage of Chinese cars in the Vietnamese market. In contrast, some Southeast Asian countries export cars to Vietnam enjoy lower tariffs or even zero tariff treatment, making China's vehicles have no advantage in the first place.
Vietnamese consumers have special needs for automobiles, their cars have a relatively long service life, and they need to have a complete maintenance network and after-sales service system. In addition, Vietnam's infrastructure and road conditions are relatively poor, and cars need to be resilient enough to cope with complex road conditions while not being prone to breakdowns. Recognized Japanese and Korean brands have an advantage in this regard, they entered the Vietnamese market early and established a complete dealer network and after-sales service system, so they are very popular in the Vietnamese market. In contrast, Chinese auto brands have a small market share in Vietnam and lack a corresponding dealership network and after-sales service system, which has also become one of the concerns of Vietnamese consumers when buying Chinese brands.
Vietnamese consumers have stereotypes about Chinese car brands, and they generally believe that Chinese brands are unreliable in quality. This bias stems mainly from the negative experience of Chinese motorcycle brands that entered the Vietnamese market in the 90s of the last century. At that time, in order to compete for market share, Chinese motorcycle manufacturers reduced their **, which led to a decline in the quality of motorcycles and even a reduction in accessories. This has led to frequent breakdowns of many motorcycles exported to Vietnam, and Vietnamese consumers have a very bad impression of the quality of Chinese brands. In the Vietnamese market, Japanese and Korean brands are popular for their durability and low maintenance costs, while Chinese brands are still stuck in the unreliable image of the 90s. Because of this stereotype, many Vietnamese consumers do not consider Chinese brands when buying cars.
Despite these difficulties, there are still opportunities for Chinese auto brands to enter the Vietnamese market. With the improvement of the overall quality and reputation of Chinese car brands, the stereotype of Vietnamese consumers about Chinese brands may gradually change. After doing well in the European and American markets and establishing a good reputation, Chinese car brands have the opportunity to enter the Vietnamese market directly by establishing factories in the local market. In addition, Chinese automakers can also strengthen cooperation with Vietnamese dealers and establish a better dealership network and after-sales service system to meet the needs of Vietnamese consumers. Finally, strengthening cooperation with Vietnam** for lower tariffs and more subsidy policies will also help enhance the competitiveness of Chinese auto brands in the Vietnamese market. Through these efforts, Chinese auto brands may be able to break through the dilemma, further expand the Vietnamese market, and achieve sustainable growth on a global scale.