Country Analysis Vietnam
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Country Analysis Vietnam

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Vietnam, Automotive, Motorbike, Cars

Vietnam, Automotive, Motorbike, Cars

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  • 1. Suranjan Das
    1
    Vietnam Auto Market
    Country Analysis
    Suranjan Das
    Two wheeler domination
  • 2. Vietnam
    In 1980 Vietnam began to liberalize its economy 
    In 1994 President Clinton lifted the US trade embargo
    Post 1994 all multinationals began to pile in. Since then, Vietnam has taken off.
    In 2007, it joined the World Trade Organization (WTO)—The country posted 5 percent growth in 2009.
    Suranjan Das
    2
  • 3. Characteristics of Vietnam Motorcycle market
    Suranjan Das
    3
    Population
    forecast (millions)
    SYM
    Honda
    Yamaha
    Piaggio
    7 foreign Manufacturer
    Suzuki
    Motorcycle demand
    forecast (millions)
    45 Domestic Assemblers
    SYM
    Source: Vietnam Development Forum
  • 4. OEMs Presence Manufacturing & Distribution
    Manufacturing
    Vietnam now has 10 automobile JVs,
    One 100 % foreign-owned enterprise (GM Daewoo)
    One domestic manufacturer (Truong Hai).
    The manufacturers make vehicles of 17 world brand
    Fiat, Ssangyong, PMC, Mazda, Kia, Chevrolet, Daewoo, Mitsubishi, MercedesBenz, Suzuki, Toyota, Isuzu, Ford, Hino, Hyundai (trucks, bus), Chery and Honda.
    Distribution
    Vietnamese distributors offer more than 10 brands in Vietnam,
    BMW (Euro Auto), Audi, Porsche (PSC), Hyundai (Thanh Cong), Lifan (BaoToan), Volkswagen (World Auto), Chrysler (IC Auto), Subaru (MIV), Dong Feng,  MAN (VMC) and Fiat - Alfa Romeo (Mekong Auto).
    Suranjan Das
    4
  • 5. Characteristics of Vietnam Automotive market
    Suranjan Das
    5
    Jan-Aug 2010 sales figure
    Car sales dropped
    by 1% over 2009
    Source: VAMA
  • 6. Growth Inertia
    Domestic market is small for auto industry to grow.
    Vehicle sale <100000 / year but car models >400.
    The infrastructure in Vietnam remains very poor.
    Government restricts the number of cars by imposing high taxes.
    Global Tier-1s are afraid to invest as the cost is difficult to recover
    Local industry don’t have the scale to operate profitably.
    OEMs are forced to import components and parts from neighboring countries
    Suranjan Das
    6
  • 7. Causes of High Price of domestic parts
    Suranjan Das
    7
    Market
    Size
    Small
    Market
    No Economy
    Of Scale
    Low
    Production
    Efficiency
    High
    Price
    Vicious Circle
    High Part
    Cost
    High Tax & Tariff
    No Growth
    For Part industry
    Kenichi Ohno: VDF
    High Taxes
  • 8. Ford Vietnam 
    A JV established in 1995 between
    Ford Motor Company (75%) and
    Song Cong Diesel Company (25%)
    Total investment of US$ 102 million.
    It began business operation in 1997 with a total plant capacity of 14,000 units per year.
    The Ford plant in Hai Duong is the first automotive manufacturer in Vietnam with ISO 9001, ISO 14001, QS9000 and ISO TS 16949 accreditation.
    Suranjan Das
    8
  • 9. GM Vietnam
    VIDAMCO Started as a JV between
    Daewoo Motor and
    7983 EngineeringEnterprise (under Ministry of Defence).  
    Was established on December 14th, 1993
    VIDAMCO acquired the local partner’s share and has become the first wholly foreign owned carmaker in Vietnam since April 2000.
    The company’s head office and factory are situated at TuHiep Commune, Thanh Tri District, Hanoi City
    Annual assembly output of various models up to 10,000 units of passenger cars and 500 units of buses per shift.
    Suranjan Das
    9
  • 10. Suranjan Das
    10
    Thanks for viewing this presentation
    The author can be contacted at das_suranjan@yahoo.com