Car importers are in a spin. The International Auto Trading Investment Joint Stock Company was founded in December 2007 to trade in automobiles.

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However, the firm stopped operating from January 2012 on the back of poor performance after getting shareholders approval to go dismantled.

Managing director Ho Khac Hung at Tay Bac Auto Joint Stock Company said a number of firms trading in completely built-up unit (CBU) imports either withdrew ‘in silence’ or temporarily halted operations in the past six months.

Their retreat came in the face of the Ministry of Industry and Trade’s Circular 20/TT-BCT stringent requirements on less than nine seat car imports, which came into force from late June 2011.

Reality shows that the trading of used cars also proved less effective since scores of commercial firms jumped into imports of several best-selling used car models on the back of Circular 20’s tight regulations on new car imports.

“There is no option other than halting business or shutting up shop if firms simply rely on car trading,” said Hung.

Big names in the car industry also face challenges in boosting sales figures.

Vietnam Automobile Manufacturers’ Association (VAMA) statistics showed that 4,274 cars were sold out in January 2012, with the sales volume of VAMA member units declining 60 per cent compared to the same period in 2011 as well as to December 2011. Sales of multi-purpose vehicles, sedans and commercial cars slid 67 per cent, 56 per cent and 59 per cent in volume, respectively.

Though the auto market is in the doldrums, car firms have reportedly raced to roll out new models to fuel demands.

For example, Toyota Vietnam is promoting sales of used cars, which is considered a potential market segment in Vietnam.

Accordingly, the Japan-backed firm will develop a chain of Toyota used car trading centres across the country.

Source: VIR