Vietnam Automobile Comprehensive Report Q1/2019
VIETNAM AUTOMOBILE INDUSTRY
Vietnam automobile industry is now almost stopped at simple assemply with the an average localization rate of approximately of 10%. In order to promote domestic automobile manufacture, The Government has promulgated Decree 116/2017/ND-CP to create new development oppotunites for domestic enterprises instead of being inferior to imported automobiles. As a result, in 2018, the total number of cars manufactured and assembled nationwide increased by 8.5% compared to 2017, in which passenger cars had the highest proportion.
The market entry of VinFast is expected to boost the domestic automobile manufacturing and assembly industry, which helps to increase the localization rate and reduces dependence on imported cars.
According to the Vietnam Automobile Manufacturers Association (VAMA), in 2018, the overall automobile market sales increased by 1.5% compared to 2017. It can be seen that the consumption structure of cars by region of Vietnam almost stayed unchanged as it still concentrated on the North and the South with the proportion of 42.47% and 43.33% respectively.
According to the General Department of Customs, in December 2018, the number of imported cars in Vietnam increased by 16.3% in volume and 11.1% in value compared to the previous month. Although the number of imported automobiles in 2018 declined, the strong purchasing power in the last 3 months of the year showed that the demand for consumer cars was still high.
Vietnam automobile industry is now almost stopped at simple assemply with the an average localization rate of approximately of 10%. In order to promote domestic automobile manufacture, The Government has promulgated Decree 116/2017/ND-CP to create new development oppotunites for domestic enterprises instead of being inferior to imported automobiles. As a result, in 2018, the total number of cars manufactured and assembled nationwide increased by 8.5% compared to 2017, in which passenger cars had the highest proportion.
The market entry of VinFast is expected to boost the domestic automobile manufacturing and assembly industry, which helps to increase the localization rate and reduces dependence on imported cars.
According to the Vietnam Automobile Manufacturers Association (VAMA), in 2018, the overall automobile market sales increased by 1.5% compared to 2017. It can be seen that the consumption structure of cars by region of Vietnam almost stayed unchanged as it still concentrated on the North and the South with the proportion of 42.47% and 43.33% respectively.
According to the General Department of Customs, in December 2018, the number of imported cars in Vietnam increased by 16.3% in volume and 11.1% in value compared to the previous month. Although the number of imported automobiles in 2018 declined, the strong purchasing power in the last 3 months of the year showed that the demand for consumer cars was still high.
Abbreviations
Executive summary
1. BUSINESS ENVIRONMENT
1.1 Macroeconomics
1.2 Legal barrier
1.3 Impact of free trade agreements
2. INDUSTRY OVERVIEW
2.1 World automobile market
2.1.1 Spare parts
2.1.2 Production
2.1.3 Consumption
2.1.4 Import - export
2.1.5 Top typical countries
2.1.6 Top typical brands
2.2 Vietnam automobile market
2.2.1 Scale and characteristics
2.2.2 Industry value chain
2.2.3 Industry position
2.2.4 Spare parts
2.2.5 Production
2.2.6 Consumption
2.2.7 Import
2.2.8 Automobile prices
2.2.9 Distribution system
3. RISKS AND CHALLENGES
4. DRIVING FORCES
5. PLANNING AND FORECAST
6. ENTERPRISES
Executive summary
1. BUSINESS ENVIRONMENT
1.1 Macroeconomics
1.2 Legal barrier
1.3 Impact of free trade agreements
2. INDUSTRY OVERVIEW
2.1 World automobile market
2.1.1 Spare parts
2.1.2 Production
2.1.3 Consumption
2.1.4 Import - export
2.1.5 Top typical countries
2.1.6 Top typical brands
2.2 Vietnam automobile market
2.2.1 Scale and characteristics
2.2.2 Industry value chain
2.2.3 Industry position
2.2.4 Spare parts
2.2.5 Production
2.2.6 Consumption
2.2.7 Import
2.2.8 Automobile prices
2.2.9 Distribution system
3. RISKS AND CHALLENGES
4. DRIVING FORCES
5. PLANNING AND FORECAST
6. ENTERPRISES
LIST OF FIGURES:
Figure 1: Monthly CPI fluctuations, 1/2015 – 12/2018
Figure 2: GDP growth by Quarters, 2015 – 2018
Figure 3: Consumer Confidence Index, 2014- Q2/2018
Figure 4: GDP per capita, 2013 - 2018
Figure 5: Lending interest rate and mobilizing interest rate, 2012-2018
Figure 6: VND/USD exchange rate, 2011-2018
Figure 7: Level of urbanization, 2010 - 2017
Figure 8: Disposable income and household expenditures, 2008 – 2017f
Figure 9: Import of world car components, 2010 - 2017e
Figure 10: Production of cars in the world, 2010 - 2017
Figure 11: Structure of world production by vehicle, 2017
Figure 12: Production structure by region, 2016 - 2017
Figure 13: World car consumption by type, 2010 - 2017
Figure 14: Top 10 World’s best-selling cars , 2017
Figure 15: Consumption of car in the world, 2013 - 2017
Figure 16: Car consumption of ASEAN Automotive Federation members (AAF), 2017
Figure 17: The number of vehicles used in the world, 2010 - 2015e
Figure 18: Structure of vehicle usage by area, 2015
Figure 19: Exporting cars in the world, 2010 – 2017e
Figure 20: Structure of automobile exports by country, 2017e
Figure 21: Import structure of cars by country, 2017e
Figure 22: Top 10 leading producers in the world, 2016
Figure 23: Top ten world’s most-priced cars published by Brand Finance, 2017
Figure 24: Number of businesses, 2010-2016
Figure 25: Number of employees, 2010-2016
Figure 26: Sales of automobile manufacturing and assembly, 2010 – 2017
Figure 27: Sales of automobile wholesaling and retailing, 2010 – 2017
Figure 28: Vehicle consumption structure by business, 2018
Figure 29: Car accessories output, 2013-9M/2018
Figure 30: Structure of car accessories, 9M/2018
Figure 31: Import of car accessories, 2010 – 2018
Figure 32: Localization rate of some countries in the region, 2017
Figure 33: Import of auomobile spare parts by countries, 2016-2018
Figure 34: Import structure of automobile spare parts, 2018
Figure 35: Production output of THACO, 2010 - 2016
Figure 36: Production and assembly of automobiles in Vietnam, 2010 - 2018
Figure 37: Production, assembly structure by vehicle type, 2010 – 2018
Figure 38: Automobile consumption in Vietnam, 2006-2018
Figure 39: Consumption of cars by vehicle type, 1/2017-12/2018
Figure 40: Consumption output by car origin,1/2017-12/2018
Figure 41: Trends in automobile industry development in some Southeast Asian countries, 2011 - 2016
Figure 42: Proportion of car ownership below 9 seats in some countries in region, 2017
Figure 43: Number of cars per 100 households by urban and rural areas,
2004 – 2016e
Figure 44: Top 10 best selling cars 2018
Figure 45: Consumption structure of VAMA members by region , 2016-2018
Figure 46: Consumption vehicles of VAMA members by region, 2018
Figure 47: Vehicle consumption structure by business, 2017
Figure 48: Vehicle consumption structure by business, 2018
Figure 49: Import of automobiles in complete units, 2011-2018
Figure 50: Import complete cars from some big countries, 2017 - 2018
Figure 51: Structure of complete cars import by country, 2018
Figure 52: Top markets of above 2 billions cars impored in Viet Nam, 2017
Figure 53: Vietnam Automobile prices comparing to other countries, 2017
Figure 54: Vehicle prices according to the cost structure of the consumer
Figure 55: Price movements of some major vehicles, 6/2014-12/2018
Figure 56: VND/USD exchange rate, 2011-9/2018
Figure 57: World crude oil, 2011 - 9/2018
Figure 58: Structure by source of CO2 emission to the environment
Figure 59: Population pyramid, 2016
Figure 60: Outstanding consumer loans, 2012 - 2017
Figure 61: Structure of population by stratification (expenditure), 2013 – 2020f
Figure 62: Disposable income and household expenditures, 2012 – 2017f
Figure 63: Forecast of car consumption in Vietnam, 2016 - 2020f
Figure 1: Monthly CPI fluctuations, 1/2015 – 12/2018
Figure 2: GDP growth by Quarters, 2015 – 2018
Figure 3: Consumer Confidence Index, 2014- Q2/2018
Figure 4: GDP per capita, 2013 - 2018
Figure 5: Lending interest rate and mobilizing interest rate, 2012-2018
Figure 6: VND/USD exchange rate, 2011-2018
Figure 7: Level of urbanization, 2010 - 2017
Figure 8: Disposable income and household expenditures, 2008 – 2017f
Figure 9: Import of world car components, 2010 - 2017e
Figure 10: Production of cars in the world, 2010 - 2017
Figure 11: Structure of world production by vehicle, 2017
Figure 12: Production structure by region, 2016 - 2017
Figure 13: World car consumption by type, 2010 - 2017
Figure 14: Top 10 World’s best-selling cars , 2017
Figure 15: Consumption of car in the world, 2013 - 2017
Figure 16: Car consumption of ASEAN Automotive Federation members (AAF), 2017
Figure 17: The number of vehicles used in the world, 2010 - 2015e
Figure 18: Structure of vehicle usage by area, 2015
Figure 19: Exporting cars in the world, 2010 – 2017e
Figure 20: Structure of automobile exports by country, 2017e
Figure 21: Import structure of cars by country, 2017e
Figure 22: Top 10 leading producers in the world, 2016
Figure 23: Top ten world’s most-priced cars published by Brand Finance, 2017
Figure 24: Number of businesses, 2010-2016
Figure 25: Number of employees, 2010-2016
Figure 26: Sales of automobile manufacturing and assembly, 2010 – 2017
Figure 27: Sales of automobile wholesaling and retailing, 2010 – 2017
Figure 28: Vehicle consumption structure by business, 2018
Figure 29: Car accessories output, 2013-9M/2018
Figure 30: Structure of car accessories, 9M/2018
Figure 31: Import of car accessories, 2010 – 2018
Figure 32: Localization rate of some countries in the region, 2017
Figure 33: Import of auomobile spare parts by countries, 2016-2018
Figure 34: Import structure of automobile spare parts, 2018
Figure 35: Production output of THACO, 2010 - 2016
Figure 36: Production and assembly of automobiles in Vietnam, 2010 - 2018
Figure 37: Production, assembly structure by vehicle type, 2010 – 2018
Figure 38: Automobile consumption in Vietnam, 2006-2018
Figure 39: Consumption of cars by vehicle type, 1/2017-12/2018
Figure 40: Consumption output by car origin,1/2017-12/2018
Figure 41: Trends in automobile industry development in some Southeast Asian countries, 2011 - 2016
Figure 42: Proportion of car ownership below 9 seats in some countries in region, 2017
Figure 43: Number of cars per 100 households by urban and rural areas,
2004 – 2016e
Figure 44: Top 10 best selling cars 2018
Figure 45: Consumption structure of VAMA members by region , 2016-2018
Figure 46: Consumption vehicles of VAMA members by region, 2018
Figure 47: Vehicle consumption structure by business, 2017
Figure 48: Vehicle consumption structure by business, 2018
Figure 49: Import of automobiles in complete units, 2011-2018
Figure 50: Import complete cars from some big countries, 2017 - 2018
Figure 51: Structure of complete cars import by country, 2018
Figure 52: Top markets of above 2 billions cars impored in Viet Nam, 2017
Figure 53: Vietnam Automobile prices comparing to other countries, 2017
Figure 54: Vehicle prices according to the cost structure of the consumer
Figure 55: Price movements of some major vehicles, 6/2014-12/2018
Figure 56: VND/USD exchange rate, 2011-9/2018
Figure 57: World crude oil, 2011 - 9/2018
Figure 58: Structure by source of CO2 emission to the environment
Figure 59: Population pyramid, 2016
Figure 60: Outstanding consumer loans, 2012 - 2017
Figure 61: Structure of population by stratification (expenditure), 2013 – 2020f
Figure 62: Disposable income and household expenditures, 2012 – 2017f
Figure 63: Forecast of car consumption in Vietnam, 2016 - 2020f
LIST OF TABLES
Table 1: Regulation of maintenance of means of transport
Table 2: The draft import tax applies to automobile parts
Table 3: Roadmap to apply special consumption tax on cars
Table 4: Roadmap of WTO tariff reductions for imported complete cars and auto components
Table 5: Import structure of automobile components and accessories, 2017e
Table 6: Export structure of automobile components and accessries, 2017e
Table 7: Top the largest automobile consumption countries by volume, 2017
Table 8: Competitive Analysis between Truong Hai and Toyota Vietnam by the end of 2018
Table 9: Top brands of above 2 billions cars impored in Viet Nam, 2017
Table 10: Special consumption tax by car segment, 2018
Table 11: Imported car prices from ASEAN before 1/1/2018, assuming an original price of
Table 12: Imported car prices from ASEAN after 1/1/2018, assuming an original price of
Table 13: Estimated vehicle output and growth rate of the year
Table 14: Expected volume of domestic assembled vehicles compared to total domestic demand (%)
Table 15: Expected to export complete vehicles and spare parts
Table 16: Rate of localization by value over years
Table 1: Regulation of maintenance of means of transport
Table 2: The draft import tax applies to automobile parts
Table 3: Roadmap to apply special consumption tax on cars
Table 4: Roadmap of WTO tariff reductions for imported complete cars and auto components
Table 5: Import structure of automobile components and accessories, 2017e
Table 6: Export structure of automobile components and accessries, 2017e
Table 7: Top the largest automobile consumption countries by volume, 2017
Table 8: Competitive Analysis between Truong Hai and Toyota Vietnam by the end of 2018
Table 9: Top brands of above 2 billions cars impored in Viet Nam, 2017
Table 10: Special consumption tax by car segment, 2018
Table 11: Imported car prices from ASEAN before 1/1/2018, assuming an original price of
Table 12: Imported car prices from ASEAN after 1/1/2018, assuming an original price of
Table 13: Estimated vehicle output and growth rate of the year
Table 14: Expected volume of domestic assembled vehicles compared to total domestic demand (%)
Table 15: Expected to export complete vehicles and spare parts
Table 16: Rate of localization by value over years
