NewswireToday - /newswire/ -
Delhi, New Delhi, India, 2007/10/23 - The Vietnamese automobile industry, in line with global automobile industry, is on a fast track. The industry, due to rising income and accession of Vietnam to WTO, is expected to see record growth during 2007-2010.
Today, the world needs mobility at a pace, and hence, the worldwide automobile industry is running ahead at a speed never seen before; even the developing countries are witnessing a boom in their automobile industries. Vietnam, one such country, is experiencing dynamic activity in its automobile industry and the report “Vietnam Automobile Industry Forecast (2007-2010)” by RNCOS, the leading market research company, has studied the factors and market of the country to better understand the phenomenon.
As per the report, the Vietnamese automobile market is estimated to grow at an AAGR of around 11.6% during 2007-2010.
The research says that rising middle-age populace, both in rural and urban areas, is supporting the growth of automobile industry, particularly the passenger car segment. As middle-age people have high earning power and this group is more capable of expending on automobiles than the studying age group, it is leading to high automobile demand in Vietnam.
The other reasons pushing growth in the auto industry in the country put forth by the report are Vietnam’s joining of the World Trade Organization (WTO), changing lifestyles, flexible car financing schemes, and accruing spending on auto-related parts.
Driven by the above factors, automobile sales in Vietnam bounced back from two-year slump and reached over 40850 units in 2006, according to Vinastarmotors, Vietnamnet and VAMA (RNCOS report). This came as a surprise as all major South-East Asian countries registered a fall in sales in 2006. But as the market is gaining momentum, the sales are projected to touch 60,000 units by 2007 end.
These impressive figures in Vietnamese auto industry have caught the attention of international automobile companies. A number of international biggies, like Honda, General Motors, Toyota, and many Chinese players are already operating in the Vietnamese market. China’s automobiles, in particular, are steadily taking over the Vietnamese market. So if tariff barriers are removed (as Vietnam has joined the WTO), it will lead to decline in automobile prices and Chinese players, with low price advantage, become dominant in Vietnam.
“Vietnam Automobile Industry Forecast (2007-2010)” talks about the current scenario of Vietnam’s automobile industry including production and sales of various segments like passenger cars, LCVs, motorcycles, MPVs, and SUVs, supplemented with their future forecast. It also discusses export and import statistics, tax and duties, drivers, opportunities, and challenges for the market.
RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of industry experts who analyze data collected from credible sources. They provide industry insights and analysis that helps corporations to take timely and accurate business decision in today's globally competitive environment.