China's auto industry has shown a vigorous development trend in recent years, becoming the world's largest country in automobile production and sales for many years, and surpassing Japan to become the world's largest auto exporter. Especially in Europe and the United States, China's automobile exports are growing, and Belgium, the United Kingdom, Russia and other countries are China's main automobile export destinations. At the same time, Southeast Asia is also rapidly emerging economically and has a large population market, so it has also become one of the potential markets for China's automobile exports. However, while Chinese automakers are actively exploring the market in other Southeast Asian countries, it is difficult to make a breakthrough in the Vietnamese market. Although Chinese cars are listed in the Vietnamese market, the market share of Chinese cars in Vietnam is relatively small compared to Japanese and Korean brands, and it cannot be ignored that Japanese and Korean brands account for at least 80% of the market share in Vietnam's car market. Why is it that Chinese cars can be proud of the world, but it is difficult to break into the Vietnamese market?
1. Tariff and subsidy protection gap: Chinese cars face high tariffs and lack of subsidy protection when exported to Vietnam. In order to protect the country's auto industry, Vietnam imposes tariffs of up to 80% on the import of finished vehicles, while the import tariffs on auto parts are relatively low. In order to reduce costs, many automakers choose to export parts to Vietnam, where they are assembled and sold as finished vehicles. In contrast, China's exports to Vietnam are mainly finished vehicles, and there is no local car production plant, which means that high tariffs need to be paid, making Chinese cars lose their competitiveness. In addition, the export growth of China's new energy vehicles mainly relies on subsidies, but there is no corresponding subsidy policy for vehicles exported to Vietnam, which further reduces the competitive advantage of Chinese automobiles.
2. Insufficient distribution system and after-sales service: Vietnam's automobile market is relatively unique, and there is no regulation on how many vehicles must be forcibly scrapped after many years, resulting in many cars having a long service life and requiring maintenance for long-term use. In addition, Vietnam's infrastructure and road conditions are relatively inadequate, which requires vehicles to have high durability, are not prone to breakdowns, and require a well-developed maintenance network and after-sales service system. Japanese cars are popular in the Vietnamese market due to their high durability and low maintenance costs. In contrast, Chinese car brands have a small share of the Vietnamese market and lack a complete dealership network and after-sales service network, which also leads to the reluctance of many Vietnamese consumers to buy Chinese cars.
3. Vietnamese consumers' prejudice against Chinese brands: Vietnamese consumers have some negative prejudices against Chinese auto brands. In the 90s of the last century, Chinese motorcycles did not perform well in the Vietnamese market, and many motorcycle brands lowered** to gain a larger market share, resulting in a decrease in quality and even failures, leaving a bad impression on Vietnamese consumers. As a result, many Vietnamese consumers are skeptical of Chinese motorcycle brands. Although China's automotive industry has improved significantly in terms of quality, performance and intelligence, and is becoming more competitive in the global automotive market, Vietnamese consumers still have a more negative perception of Chinese brands, which they perceive as poor quality and unreliable. This stereotype also leads many Vietnamese consumers to not consider buying a Chinese brand when buying a car.
Chinese cars are not completely out of the box if they want to enter the Vietnamese market. The overall quality of Chinese car brands has been significantly improved in recent years, and they have performed well in the European and American markets, establishing a good reputation. If Chinese auto brands perform well in the European and American markets and establish a good reputation, it is believed that the stereotype of Chinese brands among Vietnamese consumers will gradually change. At that time, Chinese car brands can take this opportunity to establish a local production base in Vietnam to improve their competitiveness in the Vietnamese market by reducing costs and providing high-quality after-sales service.
In addition, China** can also consider negotiating with Vietnam** to reduce tariffs on automobiles and introduce corresponding subsidy policies to create better environmental conditions for Chinese cars in the Vietnamese market.
In addition, before entering the Vietnamese market, Chinese auto companies also need to understand the needs and preferences of Vietnamese consumers, and position and develop products according to market demand. By researching the market and providing products and services that meet the needs of Vietnamese consumers, you can better meet the needs of the Vietnamese market.
All in all, entering the Vietnamese market is a challenge, but also an opportunity for Chinese car brands. By reducing costs, improving quality, and changing consumer stereotypes, Chinese auto brands are expected to gain more market share and succeed in the Vietnamese market.