VAMA meets 60 percent of local car demand

The Vietnam Automobile Manufacturers' Association (VAMA) has announced that from August, 2000 to date, over 1.1 million cars of various kinds have been locally assembled.

VAMA raises its forecast of total car purchases in 2015 will reach over 130,000 vehicles. With increased number of the production of cars assembled locally, VAMA has met nearly 80 percent of demand of vehicles for tourism and 60 percent of vehicles for commercial.  (Photo: SGGP)
In the first six months of 2015, sales of locally assembled vehicles had risen by 67 percent over the same period of the previous year or 91,711 vehicles including locally assembled and imported were sold in Vietnam.

VAMA forecast total car purchases in 2015 will reach over 130,000 vehicles. With increased number of the production of cars assembled locally, VAMA has met nearly 80 percent of demand of vehicles for tourism and 60 percent of vehicles for commercial.

Last year, VAMA contributed over VND44 trillion (nearly US$2 billion) to the state budget, offered 100,000 jobs for local laborers.

Local firm Truong Hai Automobile Co. (Thaco), a member of VAMA, is keeping the number-one position in car sales. According to its report to the State Security Commission of Vietnam, Thaco’s turnover in the first six months reached VND18,800 billion (US$864,964,343), an increase of 88 percent compared the same period last year.

Its after-tax profit was VND3,203 billion (US$147,365,999) and paid VND5,744 billion (US$ 264,274,212). Just in the first six months, Thaco had sold 34,593 vehicles, an increase of 93 percent compared the same period last year.

Vu Bao Quoc, Thaco’s finance deputy director, said that Vietnam’s economic condition has grown rapidly and loan for business and consumers has low interest, foreign exchange rate has been controlled and traffic infrastructure improved, helping car market increase.

By Lac Phong – Translated by Uyen Phuong

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