Imported cars headed north

Hanoi car dealers are now moving cars from the south to the north so that they do not have to import more cars. Meanwhile, southern car dealers are happy to clear their stock.

Northern and southern auto dealers are cooperating to sell imported cars.

The owner of a well-known HCM City import car company observed that a strange thing has taken place over the last two weeks: imported cars have been carried from the south to be sold in Hanoi. Previously, cars were moved in the opposite direction as the southern market was more active than in Hanoi.

Explaining the turnabout, the dealer explained that it is now difficult to import cars due to complicated procedures. In addition, banks have tightened lending for car import deals. Therefore, car dealers would rather purchase cars from each other rather than import them and waiting months for deliveries.

“Besides, big stocks are also a reason that car dealers join forces,” he added.

He revealed on to say that Hanoi car dealers like Toyota Camry and Toyota Venza most of all. The cars are carried to the north either by train or truck. The total cost of carrying a car to Hanoi is about 4-6 million dong.

Hoang Tuan, a Hanoi auto dealer, stated that he has just brought five Camrys from HCM City to Hanoi. “Very few companies in Hanoi are importing at this moment. They are buying cars from other companies to sell to clients,” he confirmed.

According to Tuan, there are clear tendencies in the car market. US and European models are mostly seen in the south, while small cars from South Korea are mostly seen in the north. He recalled that, in the past, cars were carried from to the south because demand was higher in HCM City than Hanoi.

According to the General Department of Customs, the number of cars imported in the first 10 days of June continued to drop.

The owners of a large HCM City car showroom maintained that car sales is the job of many businessmen. Even when the market is gloomy, they still import cars and try to sell them by stimulating demand.

“This explains why the inventory of cars is always bigger in HCM City than in Hanoi,” he asserted.

Just two days ago, he revealed, his company wrapped up a deal to sell five Camrys and three Venzas to two enterprises in Hanoi.

The Ministry of Industry and Trade has put cars on the list of Vietnam’s restricted imports, so auto imports are under strict control. Car importers must pay taxes right at the port when the cars get customs clearance (in the past, they could carry the cars away and pay taxes later). Moreover, loading and unloading fees have increased by $125 for every container.

VnExpress

Tags: Vietnam automotive, Vietnam automotive industry, Vietnam autos market, Vietnam car imports