After a decade of development, often through buying or benchmarking foreign technology and know-how, Chinese automakers are looking with greater ambition at selling their cars in major Western markets. Improvements in car design, technology and marketing at firms including Geely (0175.HK), GAC Motor and Great Wall Motor (601633.SS) have brought them a bigger share in their home market, the world’s largest, and give them a better chance of survival in competitive markets in Europe and the United States. Once distant dreams of staking a claim in Western strongholds may now be edging nearer. “We have in the Western world an outrageous arrogance. We think we’re ahead. It’s going to change,” says Alain Visser, Senior Vice President of Lynk & Co, a new brand set up by Geely. “China is passing you at a speed that in our arrogance we don’t even see,” Visser told Reuters earlier this month. Hangzhou-based Geely, which owns Volvo Cars and Lotus … [Read more...] about Are China’s cars finally going to make inroads in Western markets?
Buy sell trade cars
VietNamNet Bridge - Vietnamese can buy bitcoin and other virtual currencies on some trading floors, but as Vietnam doesn’t recognize bitcoin as an official currency, Vietnamese are facing risks when conducting transactions.The bitcoin price has increased by two times compared with September 15, and soared by 600 percent compared with the beginning of the year.This explains why many Vietnamese still buy bitcoins despite the warning about risks.They are also buying bitcoins because they hope it will be recognized in Vietnam, though the central bank has been called on to prohibit it. The current laws do not recognize bitcoin as a currency with payment function, but do not prohibit the trading and possessing of bitcoin.Vietnamese can buy and sell bitcoin on markets held on the internet. The groups of people on social networks gather bitcoin buyers and sellers. Users need a bitcoin wallet, which is free of charge, for transactions. Those who want to sell/buy bitcoin will make … [Read more...] about Where are Vietnamese buying bitcoin?
Status hungry agencies continue to plea for new cars despite billions of dong being spent, and 7,000 perfectly good vehicles remaining unused. Agencies are wasting public money on excessive numbers of new cars State agencies bought 611 new cars valued at a gigantic VND603bn (USD27m) in 2015 according to the Ministry off Finance, while 7,000 state-owned vehicles remained unused. The Ministry of Agriculture and Rural Development led the list with 176 cars, with the Ministry of Industry and Trade in second with 57 cars. There were 29 unused cars in Binh Thuan Province and 73 cars in Quang Ninh Province. Vietnam has about 40,000 state-owned cars which are valued at VND13trn (USD590m) a year in terms of maintenance and driver wages. About 30% of the fleet is out-dated. This huge fleet was purchased using tax money yet have been left to deteriorate. In addition, lots of money is also being wasted on idle drivers, yet many agencies have refused to sell older cars while asking to buy … [Read more...] about Huge money wasted on unused state cars
Car sales in September plummeted, according to the Vietnam Automobile Manufacturers’ Association (VAMA). VAMA’s report revealed 21,216 units were sold, down four per cent from the previous month and down 20 per cent against the same period last year. The sale included 11,637 passenger cars, 8,700 commercial vehicles and 879 special purposed vehicles. Domestic car production reached 14,739 vehicles, down five per cent from the previous month and the number of imported vehicles was 6,477 vehicles, decreasing by two per cent from the previous month. Cumulative total sales of the whole market in the first nine months of this year reached 198,246 units, decreasing by eight per cent over the same period last year. Used car market While the new car market has witnessed a downward trend in sales and selling price, the used car market is, however, quite busy, even though the car import tax from ASEAN will be reduced to zero per cent from January 1, 2018, which is expected to … [Read more...] about New car sales fall, used cars sales remain robust
HA NOI (Biz Hub) — Multiple companies have offered to buy the entire State-owned capital of Vietnam Motors Industry Corporation (Vinamotor), comprising 85.58 million shares, or 97.7 per cent of its registered capital.The interested companies have made a proposal regarding the same to the Ministry of Transport. The firm's stocks drew investor attention after the Government offered to sell the State-owned shares in the corporation earlier this year.The interested investors include Sacom Investment and Development Joint Stock Company (Sacom), TMT Auto JSC, Vietnam N.A Motor Co. Ltd. (Vinamco) and Thanh Cong Ninh Binh Auto JSC.According to the ministry's proposal for State-owned capital divestment sent to the Prime Minister; for entering the bidding round, investors will have to meet certain demands, such as having owned capital of more than VND855 billion (US$40.14 million) by the time of auction, committing to own the bought shares for at least five years and publicly offering to … [Read more...] about Firms clamouring to buy Vinamotor’s capital
HA NOI (Biz Hub) — Viet Nam's automobile industry had failed to reach its objective of selling cars at prices to suit Vietnamese pockets, according to the Director of the Industry and Trade Ministry's Heavy Industry Department, Nguyen Manh Quan.Prices were still high compared with those in other countries in the region, Quan said at an online seminar held by Cong Thuong (Industry and Trade) newspaper on Thursday. "The cost of cars in Viet Nam is about 20 per cent higher than in other ASEAN countries because domestic output is low and most assembly lines are operating at about 50 per cent of capacity," said Quan.Viet Nam's automobile industry involves Toyota, Ford, Nissan and Mercedes.There are 18 FDI and 38 domestic businesses making and assembling cars. They have a capacity of about 460,000 vehicles a year. The sector pays more than US$1 billion in taxes a year and creates job for about 80,000 people.At the seminar, experts said the industry was so sluggish because of the low … [Read more...] about Car industry battles its way out of a slump
HA NOI — The Bank for Industry and Trade of Viet Nam (Vietinbank) plans to sell 20 per cent of its shares to a strategic partner in the third or fourth quarter of this year, said Pham Huy Hung, the bank's chairman, at an analysts' meeting yesterday in Ha Noi. Hung said: "The bank's shares are now below their real value and priced reasonably at between VND30,000 to VND40,000 (US$1.4-$1.9) each." The chairman said that by late April, the bank's profits stood at VND2 trillion ($95.2 million) and its capital adequacy ratio (CAR) was 11 per cent. The bad debt ratio meanwhile stood at 2 per cent, which Hung said Vietinbank (CTG) was hoping to reduce to 1 per cent by the end of the year. Vietinbank successfully raised $250 million from an international five-year bond sale with a yield of 8 per cent – a high rate, Hung said. However, he said investors were still concerned about the economic climate, and the country's credit rating was low. The successful international bond … [Read more...] about Vietinbank to sell 20% to partner
Workers of Hoc Mon Rubber Factory in HCM City produce tyres for export to the EU. Natural rubber production in major producing countries is exected to reach 10.45 million tonnes this year. —VNA/VNS Photo Van Khanh HA NOI — Rubber trading rebounded significantly for the past few weeks after a long period of stagnation thanks to rising demand and restricted supply on the global market, industry insiders have said. Rubber exports to China via the Mong Cai Border Gate were rising significantly, reaching roughly 500-600 tonnes per day on average, said Le Van Xung of the Binh Long Rubber Company. Several days even saw 1,000 tonnes of rubber traded daily, he said. The growing trade volume had helped raise rubber export prices, with a tonne currently selling for 23,000 yuan (US$3,651), up 3,000 yuan ($476) against January, Xung said. According to the Association of Natural Rubber Producing Countries (ANRPC), … [Read more...] about Rubber trading bounces back after lull
HA NOI (Biz Hub) — The cost of completely-built-units (CBU) cars made in other Southeast Asian countries and exported to Viet Nam is expected to fall significantly as the present level of import tax is planned to be cut to 50 per cent from 2014.This is in line with Viet Nam's plans to fully implement the country's commitments to the Asian Free Trade Area (AFTA) when it joined in the bloc in 1995. Subsequently, the import tax will be reduced to 35 per cent by 2015, 20 per cent by 2016, 10 per cent by 2017 and zero by 2018.The import tax on CBUs is currently 60 per cent but after the drop in tax, an imported car that now costs US$10,000 will fall in price by $1,650. Hence, the more expensive the car, the larger the saving.Many domestic businesses say that the cut, up to 50 per cent of CBU, in import tax will result in the price of several imported cars almost equalling locally-assembled ones.However, models with sales of 1,000 units a year or less will be unable to compete with … [Read more...] about Foreign-made car prices set to reverse
The giant Vietnamese property developer Vingroup has announced plans to produce its first cars in the next two years, rekindling the long-cherished dream of a local car industry which has failed to come true following numerous attempts over the past two decades. From property developer to car maker The ground-breaking ceremony for the construction of Vingroup's car manufacturing complex in Hai Phong As one of the largest private companies in Vietnam, Vingroup began its existence as a property developer and has gradually branched out into other areas, from education and healthcare to entertainment, retail and agriculture. And now the firm wants to make its own cars under the brand name VinFast. VinFast has set its sights on becoming a major manufacturer in Southeast Asia, with an annual capacity of 500,000 vehicles by 2025 and products ranging from diesel cars to electric cars and bikes. In the initial stage, the company expects to produce approximately 100-200,000 units … [Read more...] about Vietnam’s car dream re-ignited as Vingroup builds manufacturing plant