Vietnam Automobile Comprehensive Report Q2/2019
VIETNAM AUTOMOBILE INDUSTRY
Vietnam automobile industry is now almost stopped at simple assembly 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 opportunities for domestic enterprises instead of being inferior to imported automobiles. According to the General Statistics Office, the first 3 months of 2019, the volume of cars produced and assembled nationwide increased by 75.1% compared to the same period of 2018.
VinFast's market entry is expected to boost the domestic automobile manufacturing and assembly industry, which helps increase the localization rate and reduce dependence on imported cars.
According to the Vietnam Automobile Manufacturers Association (VAMA), in the first 3 months of 2019, the overall automobile market sales increased 31.26% over the same period of 2018. The ranking of the 10 best-selling cars in the whole market has had many changes compared to 2018. However, it can be seen that the ranking in the first 3 months of 2019 still has the main contribution of domestic production and assembly automobiles with 8/10 car model.
The total volume of automobile import of complete units in the first 3 months of 2019 increased more than 8 times in quantity and 6 times in value compared to the same period in 2018. It can be seen, after continuous decline from 2016- 2018 due to the impact of the supply market, the barriers from domestic decree to imported cars, Q1/2019 recorded the best growth of imported automobiles in the past years when the imported cars volume in the first 3 months of 2019 is nearly half of 2018.
Vietnam automobile industry is now almost stopped at simple assembly 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 opportunities for domestic enterprises instead of being inferior to imported automobiles. According to the General Statistics Office, the first 3 months of 2019, the volume of cars produced and assembled nationwide increased by 75.1% compared to the same period of 2018.
VinFast's market entry is expected to boost the domestic automobile manufacturing and assembly industry, which helps increase the localization rate and reduce dependence on imported cars.
According to the Vietnam Automobile Manufacturers Association (VAMA), in the first 3 months of 2019, the overall automobile market sales increased 31.26% over the same period of 2018. The ranking of the 10 best-selling cars in the whole market has had many changes compared to 2018. However, it can be seen that the ranking in the first 3 months of 2019 still has the main contribution of domestic production and assembly automobiles with 8/10 car model.
The total volume of automobile import of complete units in the first 3 months of 2019 increased more than 8 times in quantity and 6 times in value compared to the same period in 2018. It can be seen, after continuous decline from 2016- 2018 due to the impact of the supply market, the barriers from domestic decree to imported cars, Q1/2019 recorded the best growth of imported automobiles in the past years when the imported cars volume in the first 3 months of 2019 is nearly half of 2018.
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 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, 2018
Table 6: Export structure of automobile components and accessories, 2018
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 3/2019
Table 9: Top brands of above 2 billions cars imported 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, 2018
Table 6: Export structure of automobile components and accessories, 2018
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 3/2019
Table 9: Top brands of above 2 billions cars imported 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
LIST OF FIGURES
Figure 1: Monthly CPI fluctuations, 1/2015 – 3/2019
Figure 2: GDP growth by Quarters, 2016 – 2019
Figure 3: Consumer Confidence Index, 2014- Q4/2018
Figure 4: GDP per capita, 2013 - 2018
Figure 5: Lending interest rate and mobilizing interest rate, 2012-2018
Figure 6: VND/USD exchange rate, 1/2013-3/2019
Figure 7: Level of urbanization, 2012 - 2018
Figure 8: Disposable income and household expenditures, 2008 – 2017f
Figure 9: Import of world car components, 2013 - 2018
Figure 10: Production of cars in the world, 2013 - 2018
Figure 11: Structure of world production by vehicle, 2018
Figure 12: Production structure by region, 2016 - 2017
Figure 13: Production structure by region, 2018
Figure 14: World car consumption by type, 2010 - 2017
Figure 15: Top 10 World’s best-selling cars , 2018
Figure 16: Consumption of car in the world, 2013 - 2017
Figure 17: Car consumption of ASEAN Automotive Federation members (AAF), 2017
Figure 18:Number of used cars in the world, 2012-2017
Figure 19: Structure of vehicle usage by area, 2017
Figure 20: Exporting cars in the world, 2011 – 2018
Figure 21: Structure of automobile exports by country, 2018
Figure 22: Import structure of cars by country, 2018
Figure 23: Top ten world’s most-priced cars published by Brand Finance, 2018
Figure 24: Top 10 leading producers in the world, 2018
Figure 25: Number of businesses, 2010-2017
Figure 26: Number of employees, 2010-2017
Figure 27: Sales of automobile manufacturing and assembly, 2010 – 2017
Figure 28: Sales of automobile wholesaling and retailing, 2010 – 2017
Figure 29: Vehicle consumption structure by business, Q1/2019
Figure 30: Car accessories output, 2013-Q1/2019
Figure 31: Structure of car accessories, Q1/2019
Figure 32: Import of car accessories, 2010 – 2018
Figure 33: Localization rate of some countries in the region, 2017
Figure 34: Import of automobile spare parts by countries, Q1/2017-Q1/2019
Figure 35: Import structure of automobile spare parts, Q1/2019
Figure 36: Production and assembly of automobiles in Vietnam, 2010 - Q1/2019
Figure 37: Production, assembly structure by vehicle type, 2011 – Q1/2019
Figure 38: Automobile consumption in Vietnam, 2010-Q1/2019
Figure 39: Consumption of cars by vehicle type, 1/2018-3/2019
Figure 40: Consumption output by car origin,1/2018-3/2019
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 Q1/2019
Figure 45: Consumption structure of VAMA members by region , Q1/2017-Q1/2019
Figure 46: Consumption vehicles of VAMA members by region, Q1/2019
Figure 47: Vehicle consumption structure by business, Q1/2018
Figure 48: Vehicle consumption structure by business, Q1/2019
Figure 49: Import of automobiles in complete units, 2011-Q1/2019
Figure 50: Automobile import structure by type, Q1/2019
Figure 51: Import complete cars from some big countries, Q1/2018 - Q1/2019
Figure 52: Structure of complete cars import by country, Q1/2019
Figure 53: Top markets of above 2 billions cars imported in Viet Nam, 2017
Figure 54: Vietnam Automobile prices comparing to other countries, 2017
Figure 55: Vehicle prices according to the cost structure of the consumer
Figure 56: Price movements of some major vehicles, 6/2017-3/2019
Figure 57: VND/USD exchange rate, 12013-3/2019
Figure 58: World crude oil, 1/2011 - 3/2019
Figure 59: Vietnam’s LPI rank, 2010 - 2018
Figure 60: Structure by source of CO2 emission to the environment
Figure 61: Growth rate of average income by age group, 2014-2018
Figure 62: Population pyramid, 2018
Figure 63: Outstanding consumer loans, 2012 - 2018
Figure 64: Structure of population by stratification (expenditure), 2013 – 2020f
Figure 65: Disposable income and household expenditures, 2012 – 2017f
Figure 66: Forecast of car consumption in Vietnam, 2016 - 2020f
Figure 1: Monthly CPI fluctuations, 1/2015 – 3/2019
Figure 2: GDP growth by Quarters, 2016 – 2019
Figure 3: Consumer Confidence Index, 2014- Q4/2018
Figure 4: GDP per capita, 2013 - 2018
Figure 5: Lending interest rate and mobilizing interest rate, 2012-2018
Figure 6: VND/USD exchange rate, 1/2013-3/2019
Figure 7: Level of urbanization, 2012 - 2018
Figure 8: Disposable income and household expenditures, 2008 – 2017f
Figure 9: Import of world car components, 2013 - 2018
Figure 10: Production of cars in the world, 2013 - 2018
Figure 11: Structure of world production by vehicle, 2018
Figure 12: Production structure by region, 2016 - 2017
Figure 13: Production structure by region, 2018
Figure 14: World car consumption by type, 2010 - 2017
Figure 15: Top 10 World’s best-selling cars , 2018
Figure 16: Consumption of car in the world, 2013 - 2017
Figure 17: Car consumption of ASEAN Automotive Federation members (AAF), 2017
Figure 18:Number of used cars in the world, 2012-2017
Figure 19: Structure of vehicle usage by area, 2017
Figure 20: Exporting cars in the world, 2011 – 2018
Figure 21: Structure of automobile exports by country, 2018
Figure 22: Import structure of cars by country, 2018
Figure 23: Top ten world’s most-priced cars published by Brand Finance, 2018
Figure 24: Top 10 leading producers in the world, 2018
Figure 25: Number of businesses, 2010-2017
Figure 26: Number of employees, 2010-2017
Figure 27: Sales of automobile manufacturing and assembly, 2010 – 2017
Figure 28: Sales of automobile wholesaling and retailing, 2010 – 2017
Figure 29: Vehicle consumption structure by business, Q1/2019
Figure 30: Car accessories output, 2013-Q1/2019
Figure 31: Structure of car accessories, Q1/2019
Figure 32: Import of car accessories, 2010 – 2018
Figure 33: Localization rate of some countries in the region, 2017
Figure 34: Import of automobile spare parts by countries, Q1/2017-Q1/2019
Figure 35: Import structure of automobile spare parts, Q1/2019
Figure 36: Production and assembly of automobiles in Vietnam, 2010 - Q1/2019
Figure 37: Production, assembly structure by vehicle type, 2011 – Q1/2019
Figure 38: Automobile consumption in Vietnam, 2010-Q1/2019
Figure 39: Consumption of cars by vehicle type, 1/2018-3/2019
Figure 40: Consumption output by car origin,1/2018-3/2019
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 Q1/2019
Figure 45: Consumption structure of VAMA members by region , Q1/2017-Q1/2019
Figure 46: Consumption vehicles of VAMA members by region, Q1/2019
Figure 47: Vehicle consumption structure by business, Q1/2018
Figure 48: Vehicle consumption structure by business, Q1/2019
Figure 49: Import of automobiles in complete units, 2011-Q1/2019
Figure 50: Automobile import structure by type, Q1/2019
Figure 51: Import complete cars from some big countries, Q1/2018 - Q1/2019
Figure 52: Structure of complete cars import by country, Q1/2019
Figure 53: Top markets of above 2 billions cars imported in Viet Nam, 2017
Figure 54: Vietnam Automobile prices comparing to other countries, 2017
Figure 55: Vehicle prices according to the cost structure of the consumer
Figure 56: Price movements of some major vehicles, 6/2017-3/2019
Figure 57: VND/USD exchange rate, 12013-3/2019
Figure 58: World crude oil, 1/2011 - 3/2019
Figure 59: Vietnam’s LPI rank, 2010 - 2018
Figure 60: Structure by source of CO2 emission to the environment
Figure 61: Growth rate of average income by age group, 2014-2018
Figure 62: Population pyramid, 2018
Figure 63: Outstanding consumer loans, 2012 - 2018
Figure 64: Structure of population by stratification (expenditure), 2013 – 2020f
Figure 65: Disposable income and household expenditures, 2012 – 2017f
Figure 66: Forecast of car consumption in Vietnam, 2016 - 2020f
