Imported cars to Vietnam reached a record level

16,683 vehicles returned home in October, the highest number since early 2019, an increase of more than 131% over the same period of 2018.

Vietnam – the ‘gold mine’ of cars from Thailand, Indonesia
Compared to September, imports of CBU cars in October increased by more than 50%, the value increased by more than 28%, according to the General Department of Customs. Accumulated from the beginning of the year, a total of 123,484 CBU cars came to Vietnam with value of more than US $ 2.7 billion.

From the beginning of 2019, Thailand continues to assert as Asia’s car factory. The neighboring country takes the lead with 68,597 vehicles exported to Vietnam. Indonesia finished second, gaining 39,911 vehicles. Particularly in October, the country surpassed Thailand, ranked first, reaching 8,019 vehicles compared to 6,761 vehicles.

Indonesia and Thailand alone accounted for more than 80% of CBU cars in Vietnam in the past 10 months. Car import tax to 0% as committed by the ASEAN Free Trade Area Agreement (AFTA) from 2018 is the main driving force behind these two countries’ cars in Vietnam. China or India gradually lost their position as the leader in automobile exports to Vietnam since 2016, when the import tax of cars from ASEAN countries fell to 40%.

A shipment of Honda imported to the city port. HCM. Photo: Dinh Tuan
A shipment of Honda imported from Thailand to the port city. HCM. Photo: Dinh Tuan

For Indonesia alone, the number of vehicles exported to Vietnam is increasing due to the fact that many car importers are from this country. From 2018, the market has more Avanza, Rush, Wigo, Fortuner (parallel made in Vietnam in 2019) of Toyota, Ertiga model, Celerio of Suzuki or especially Mitsubishi Xpander, the car is currently the second best seller in Vietnam. after Toyota Vios.

In addition to the above models, most of the imported popular cars, especially the pickup segment, are from Thailand. Some models such as Honda CR-V, Ford Ranger are selling well in Vietnam.
For Indonesia alone, the number of vehicles exported to Vietnam is increasing due to the fact that many car importers are from this country. From 2018, the market has more Avanza, Rush, Wigo, Fortuner (parallel made in Vietnam in 2019) of Toyota, Ertiga model, Celerio of Suzuki or especially Mitsubishi Xpander, the car is currently the second best seller in Vietnam. after Toyota Vios.

In addition to the above models, most of the imported popular cars, especially the pickup segment, are from Thailand. Some models such as Honda CR-V and Ford Ranger are selling well in Vietnam, the increasing number of imported cars coming to Vietnam makes the balance of consumption between imported and assembled cars become more balanced in 2019. According to statistics of Vietnam Automobile Manufacturers Association (VAMA), imported car sales in the first 10 months of 2019 increased by 118%, while assembled cars fell slightly by 2% over the same period in 2018.