In recent years, there has been a voice in the market that Vietnam is developing very fast and is expected to replace China's world factory, and we will not discuss it here, let's talk about their car sales.
First of all, BYD alone has an annual sales volume of more than 3 million in China. And in November, Vietnam's car sales were 260,000 units, down 15% y/y, passenger car sales of 210,000 units, in the first 11 months, the total sales of automobiles were less than 250,000 units, a year-on-year increase of **26%, this sales volume is extremely sluggish!
As a country with a rapidly developing economy, Vietnam's car sales have not been able to match its population size and economic strength, leaving people with deep doubts, after all, Vietnam has a population of 100 million, and it is also a densely populated country in the world
Vietnam's own lack of mature automobile manufacturing industry, high import duties and consumption taxes lead to the high cost of imported vehicles**, which makes it difficult for ordinary consumers to buy cars and restricts the expansion of the automobile market. Vietnam is a country of light industry and tourism, while automobiles are heavy industries and are not developed in this area. Moreover, after the war with our country, we dismantled the machinery that we had built with our previous aid, so there is no way to develop heavy industry now. Moreover, now heavy industry does not depend on labor costs, but involves hundreds of upstream and downstream processes, as well as heavy equipment, which are lacking.
What's more, now most car companies want to make money and sell their products in the past, and do not want to move their industrial chain overOn the other hand, Vietnam has a population of 100 million, which has a wide prospect but is not at the same level as the United States, the European Union, China, and IndiaSo the cost can't be worth it!
Secondly, Vietnam's urban traffic congestion and inadequate public transport system have made many consumers more willing to use motorcycles or public transportation instead of cars. For most households, buying a car is not an urgent need, further limiting the growth of car sales.
A large part of the reason why our domestic car sales are good is due to auto loan finance, while Vietnam's auto loan market is not developed enough, and there are many restrictions on loans provided by financial institutions, which increases the economic burden of buying cars, restricts the purchasing power of consumers, and the burden of buying cars in full is relatively heavy. We established a credit mechanism relatively early in China, so financial institutions have traces to follow, and even shouted the slogan: a cup of coffee loan to take a car!This is mainly due to the fact that our lending facility is very comprehensive. The loan amount is small, and it is directly based on the credit report. The loan amount is high, and the property guarantee is often high, so the safety factor is very high.
Conclusion: Despite the many challenges facing the Vietnamese automotive market, under the active guidance of the company, there is still great potential and room for development through the development of local automobile manufacturing, the improvement of infrastructure and financial environment, and the promotion of sustainable transportation modes. In the future, Vietnam is expected to achieve the growth of automobile sales and further promote the development of the entire automobile industry chain, which is also the main reason why many domestic cars still want to enter Vietnam despite difficulties, after all, the demographic dividend cannot be ignored!