Vietnam sees car sales climb by 70 per cent in May

The latest data from the Vietnam Automobile Manufacturers’ Association (VAMA) reveals that a total of just over 43,800 cars were sold in September, up 71 per cent on-year. The increase is attributable to the strong demands of car buyers in the domestic market.

The sales of passenger cars in May jumped five per cent over April to 35,210 units. Deliveries of commercial vehicles decreased by a mere 0.8 per cent to almost 8,000 units while special-purpose vehicles contracted by 13 per cent to 677.

Completely knocked down (CKD) vehicles grew by one per cent to 25,580 units, meanwhile, sales of completely built unit (CBU) vehicles surged by 7 per cent to slightly over 18,200 units.

In the first five months of the year, the total industry recorded sales of around 177,00 vehicles, up 39 per cent against the same period last year. Sales of CKD vehicles soared by 47 per cent reaching more than 105,000 units in light of the 50 per cent reduction in registration fees.

However, buyers of CBU vehicles are not subject to this fee reduction so their sales only climbed by 29 per cent from the same period last year to 71,660 units.

Amidst the positive signals in the domestic market, Vietnamese electric vehicle maker VinFast also announced its plan to open more than 50 stores in Europe. Accordingly, there will be at least 25 VinFast stores in Germany, 20 in France, and five in the Netherlands.

According to the VAMA, Vietnam should promote the sustainable development of its automobile industry by keeping up with the global trend of electric cars. This change will help realise the nation's commitment to net-zero carbon emissions made at COP26.

The VAMA has proposed a programme to develop electric automobiles along with a roadmap to facilitate the transition from fossil fuels to electric cars and an action plan to implement the COP26 commitments.