Vehicle sales plunge 42% in April

Vehicle sales in Vietnam plunged 42% year-on-year in April, according to data from the Vietnam Automobile Manufacturers’ Association (VAMA). The total number of vehicles sold, including both imports and locally manufactured vehicles, stood at 7,711 units against 13,271 units in the same month last year. The country also imported 12,300 completely built-up (CBU) vehicles worth US$242 million during the first four months of this year, compared with 29,900 vehicles worth US$529 million in the same period last year. Sales in Vietnam have fallen consistently over the past year, following the government’s decision to triple registration fees to up to 15% of a car’s purchase price in August 2008. The government also raised other taxes associated with vehicle purchases as part of its protectionist policies to safeguard the local auto industry. The new special consumption tax, which went into effect on April 1, was aimed at discouraging the purchase of vehicles with high emissions and low fuel efficiency. (May 8, 2009)