January-July CBU auto imports from China surge
The volume of completely built-up (CBU) autos imported from China in the first seven months of 2015 jumped more than three times compared to the same period last year to over 18,000 units, according to the General Department of Customs.
Statistics of the department showed auto imports from China in January-July totaled US$696 million and the northern neighbor was Vietnam’s biggest CBU auto exporter in the period.
Vietnam imported 64,420 cars worth US$1.71 billion in the period, surging 104.7% in volume and 152.3% in value year-on-year.
Of the total volume, Vietnam bought 14,200 cars from the Republic of Korea (RoK), up 54.3% year-on-year, 12,100 from Thailand, up 99.2%, and 8,500 from India, up 77.5%.
Although domestic automakers have the ability to assemble trucks, this vehicle still took the largest volume of imported autos in the first seven months of this year with 24,480 units and a majority of them imported from China.
Apart from growing demand on the domestic market, soaring truck imports were attributable to the Ministry of Transport’s stricter controls and heavy fines on overloaded trucks.
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| Imported cars are on display at a vehicle exhibition in Ho Chi Minh City. Vietnam imported 64,420 cars worth US$1.71 billion in the first seven months, up 104.7% in volume and 152.3% in value year-on-year - PHOTO: QUOC HUNG |
According to car importers, most of the vehicles imported from China in the period were mainly heavy and medium trucks, tractors and specialized vehicles under the brands of Dongfeng, Sinotruck, FAW, JAC, and Chenglong.
Vietnam mainly imports trucks from Japan, RoK, and China. Despite lower quality, trucks from China are in great demand in Vietnam as their prices are equivalent to two thirds of those imported from other markets.
For instance, Chinese-made tractors are priced at VND1.1-1.2 billion per unit, or 10%-15% lower than the prices of domestically assembled trucks. Meanwhile, vehicles with similar capacities from RoK cost a staggering VND1.8 billion.
Many experts forecast the volume of CBU vehicles imported from China, particularly trucks, would continue to increase due to low prices and the weaker yuan.
The department also reported that in the period Vietnam imported 21,860 under-nine-seat cars or smaller, mainly from RoK, Thailand and India.