CBUs ruffle VAMA’s feathers

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In January, 2011 France-based Citroen jumped into the Vietnamese market with its Citroen DS3 vehicles which are distributed by CFAO, a leading automotive importer distributor in Africa and French territories.

In 2011, CFAO planned to found the Automotive de France firm to import and distribute Citroen vehicles in Vietnam.

Imports of complete-built-unit (CBU) cars have become a smart option for Vietnam-based car joint ventures with an aim to expanding their presence in the local market and satisfying customers’ diverse tastes.

This was evidenced by Honda Vietnam’s (HVN) recent rolling of Honda Accord 2011 vehicles in the Vietnamese market. HVN’s decision on importing the mid-size sedans for sale in Vietnam indicates that it did not envisage the opportunity for success once it embraced on assembling this sedan line in Vietnam.

In 2010, HVN sold 3,140 vehicles (including 1,827 Civic and remainder were sport utility vehicles CR-V), down 26 per cent compared to 2009.

Nissan Vietnam also reports importing CBU cars to sell in Vietnam though it also engages in assembling cars in the country. The firm lately launched Nissan Navara pickups into the Vietnamese market after its locally-assembled Nissan Grand Livina did not report upbeat sale figures.

Mercedes Benz Vietnam leads in terms of offering Vietnamese customers a wide range of choices when it brings into Vietnam many CBU cars. Of over 30 less-than-nine seat vehicle lines it introduces to customers assembled-in-Vietnam vehicles just account for a handful.

Ford Vietnam's managing director Laurent Charpentier said that it was necessary to refer to China experiences in developing the car industry. He said China has introduced clear and unified regulations towards the car industry which would remain stable for 20-30 years.

“This [legal document stability] will help businesses set their mind at ease when doing business in the industry,” he said.

In January 2011, Vietnam imported over 6,000 CBU cars with value of around $107 million, nearly double the same period in 2010.

Sales by VAMA members were down 6 per cent in 2010 against 2009 with commercial vehicles losing 4 per cent, sedans and hatchbacks 3 per cent and multi-purpose vehicles 13 per cent.