It has been a gloomy picture for the auto industry in the first five months of this year as only 113,500 units were sold, a 36 percent year-on-year plunge.
The sales of personal cars and assembled cars decreased by 43 percent and 40 percent respectively due to weak demand and high interest rates.
This indicates ominous signs for businesses in the Vietnamese auto industry.
Starting from July 1, Vietnam halved car registration fees for locally-made or assembled cars.
Vietnam issued the same 50 percent cut for six months in 2020 and 2022 leading to a doubling in sales in both cases.
In addition, excise taxes on domestically manufactured or assembled automobiles that are payable in June, July, August and September will be suspended until November 20 under a newly-issued government decree.
The State Bank of Vietnam decided to lower interest rates on June 16 for the fourth time this year to support economic recovery. Nguyen Duc Hao, an analyst from securities brokerage company VNDirect, expected that an interest rate decrease in the second half could spur purchasing demand for luxury goods such as cars.The State Bank of Vietnam decided to lower interest rates on June 16 for the fourth time this year to support economic recovery. Nguyen Duc Hao, an analyst from securities brokerage company VNDirect, expected that an interest rate decrease in the second half could spur purchasing demand for luxury goods such as cars.