Vietnam’s Auto Industry in Doubt; Braces for Imports
Not for the first time in recent years, the Japan External Trade Organization (Jetro) is warning that some of its members in Vietnam are considering leaving the country for good, due to low local demand, poor development of support industries and a row over tax invoicing. Currently, demand for new cars in Vietnam is stagnant at around the 250,000 units per year mark, much lower than the 2 million per year racked up by close neighbour, Thailand. On average, a production line needs to run at about a 200,000 units per year rate to be profitable, but with the likes of Toyota, Mazda, Honda and Suzuki from Japan all trying to manufacture in the country, along with other notables like Hyundai and Peugeot, the chances of turning a profit are low.






