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South Korea becomes top car exporter to Vietnam

By Dam Tuan, phuong linh   March 4, 2016 | 07:17 pm GMT+7

South Korea was the biggest supplier of cars to Vietnam in 2015 with more than 26,000 units, up 58 percent year on year, and accounting for 21 percent of total imports, according to data from Vietnam Customs.

India and Thailand delivered just over 25,000 vehicles, while other competitors including Japan, Indonesia and the United States were far behind.

Local car traders said South Korean cars have winessed stable growth in Vietnam thanks to their competitive prices compared to similar vehicles from Japan or the US, plus their innovative designs and various built-in features.

south-korea-becomes-top-car-exporter-to-vietnam

Korean cars enjoyed a good year in Vietnam's automobile market

The Vietnam Automobile Manufacturers’ Association (VAMA) recently reported that car sales hit a record high of 244,914 cars in 2015, a 55 percent increase from 2014 and smashing the previous high of 180,000 sold in 2009.

Soaring imports of Completely Built Up units (cars assembled overseas) have triggered concerns over a possible collapse of the domestic Completely Knocked Down sector (cars assembled in Vietnam), which is losing competitiveness with tariffs on cars imported from ASEAN countries scheduled to be slashed to zero in 2018 under the ASEAN Free Trade Area and other multilateral agreements.

Toyota Vietnam said Vietnam is the fifth largest car consumption market in ASEAN.
"In 2020, the average income per capita in Vietnam is projected to reach USD $3,000 then car sales are expected to hit 370,000,” said a Toyota Vietnam spokesperson.