Sales of Thai motor cars are increasing in Vietnam and the country has overtaken China in terms of numbers.
According to figures from the General Department of Vietnam Customs there were 2,355 completely-built-up (CBU) motor cars imported from Thailand in April, worth $41.5 million.
Though standing in second place among the 12 countries and territories exporting motor vehicles to Vietnam in terms of turnover, Thailand officially overtook China in terms of numbers in the first four months of the year.
The number of CBU motor cars imported in Vietnam in the four months was 10,155 units, worth nearly $183 million. Thailand exported 4,216 units, worth $162 million.
Thai automakers clearly possess certain advantages when exporting to Vietnam and Vietnamese drivers benefit.
Chinese manufacturers of heavy trucks, meanwhile, are at an advantage in terms of price, which wins over many Vietnamese customers rather than quality.
For passenger cars of ten seats or more Vietnamese enterprises and joint ventures in Vietnam hold the advantage.
While the import of high-end motor cars from Europe remained steady, the source of more affordable vehicles has diversified, including locally-made and those from South Korea, Japan, Thailand and, a recent “phenomenon”, India.
Import duties on CBU automobiles from Southeast Asian countries are to be cut under the Agreement on Trade in Goods of ASEAN (ATIGA). From January 1, 2018, rates on CBU vehicles from ASEAN countries will fall to 0 per cent, pushing down retail prices considerably.
Thai CBU vehicles hold clear and major advantages when competing in Vietnam, and numbers are rising.