The models affected by this recall are XC90, CX40, S90 and V90, according to the Ministry of Industry and Trade's competition and consumer protection department (CCPD). These models were manufactured between January 2019 and March 2020, and were imported from Sweden and Malaysia.

Out of the 732, 476 have been sold and 256 are still with dealers.

The auto emergency braking (AEB) does not activate as intended for certain objects such as pedestrians and cyclists due to a software issue with the camera linking to ASDM (Active Safety Domain Master), the department said. The defect keeps sensors from identifying an object. As a result, the system doesn't function as intended and increases the risk of collision. 

The conventional brakes and all other safety features of the car, like forward collision warning (audible and signal notifications) still work normally and are completely unaffected by this problem. Therefore, the affected vehicles still meet the safety conditions for service, the department said.

The recall period, starting March 20, will last until December 31, 2022.

The Swedish brand recorded sales of 500 units in Vietnam last year, up 250 percent from 2018, with the most in-demand model being the compact crossover SUV Volvo XC60 priced at VND2.85 billion ($123,200).

Auto sales have hit a five-year low, falling 33 percent year-on-year in the first quarter to 52,557 units, as the Covid-29 pandemic triggered a slump in demand, according to the Vietnam Automobile Manufacturers Association.