There were only 26,439 new car sales in Vietnam in November representing a drop of 15 percent compared to November last year, Just Auto is reporting, referencing data from the Vietnam Automotive Manufacturers Association (VAMA). Just 240,027 were sold in the first 11 months of this year, down from 327,760 in the first 11 months of last year.
Why it matters: Car manufacturing, which is mostly at the assembly stage in Vietnam as opposed to making parts and components, is relatively concentrated in a few key provinces. Of note, it was reported last week that the drop in car sales had seen Quang Ninh province’s tax revenue cut by nearly a third. See: Car sales decline sees budget revenues slashed in northern Vietnam province.
There is, however, a silver lining in that a shortage of workers to register new cars is expected in the near future, but less cars may mean less pressure on the vehicle registration system. See: Vietnam facing shortage of staff to register new cars pre-Tet.
