Many encouraging signs for the auto industry's sales in the second half of the year.

DNHN - Although the auto industry encountered numerous difficulties in the first half of 2023, positive signs of recovery and expansion were observed in June 2023.

The Vietnamese auto industry anticipates a recovery in the second half of 2023 as a result of the implementation of supportive policies and the completion of significant transport infrastructure projects. After the difficulties posed by the COVID-19 pandemic during the first half of the year, these are encouraging signs for the auto industry's recovery.

Beginning on July 1, 2023, registration fees for domestically manufactured and assembled vehicles will be reduced by 50 percent. As a result of lower ownership costs, this policy is expected to stimulate automobile demand among Vietnamese consumers.

In addition, the State Bank of Vietnam's implementation of the roadmap to reduce interest rates beginning in the second half of 2023 is an important support policy. According to the reference interest rate, lending rates will decrease, encouraging consumers to purchase more automobiles.

In addition, the completion of transport infrastructure projects, particularly ring road, and highway projects, is a significant contributor to economic growth and has a positive effect on consumer demand for automobile ownership. More convenient transportation infrastructure will reduce travel time and create more favorable conditions for the use of automobiles.

Although the auto industry encountered many difficulties in the first half of 2023 due to the impact of the pandemic and the unstable economic climate, positive signs of recovery and expansion were observed in June 2023. The Vietnam Automobile Manufacturers Association (VAMA) reports that market sales have increased by 15% since May. The figures indicate that car sales have returned to pre-pandemic levels, even though annual passenger car sales are still declining.

Promotions from auto distributors and a more optimistic consumer outlook, anticipating an improvement in the economy in the second half of the year, were the primary contributors to the June sales increase. Long vacations, thriving tourism activities, and social events also contributed to the rise in demand for mobility and automobile usage.

Although difficulties remain, the June recovery is a positive sign, generating momentum for the auto sales recovery in the second half of 2023. To achieve sustainable growth in the future, Vietnam's auto industry is placing its faith in supportive policies and the completion of transport infrastructure projects.

P.V (t/h)