“Chinese Auto Brands Struggle in Vietnam Due to High Import Taxes and Consumer Perceptions”
In recent years, Chinese auto brands like BYD, MG, Haval, and Lynk & Co. have aggressively entered the Vietnamese market, offering competitive prices compared to Japanese and Korean cars while boasting modern technologies and features.
However, due to import taxes as high as 47%, Chinese cars still fail to attract buyers compared to those from Indonesia and Thailand, which enjoy a 0% tax rate within the ASEAN region. Faced with stiff competition, many Chinese brands have been forced to offer significant price cuts and additional incentives to boost sales and clear inventory.
Chinese brand AION entered the Vietnamese market in October 2024 but quickly withdrew in early 2025 |
For instance, the Haval H6, initially priced at around 1.1 billion VND, now sees discounts of up to 260 million VND. MG, another Chinese brand, offers promotions ranging from 50 to 160 million VND on models like the MG5, ZS, HS, and G50. Similarly, Omoda & Jaecoo have reduced prices for their Omoda C5 and Jaecoo J7 PHEV models by 35-60 million VND and 90 million VND, respectively.
Mr. Tran Viet Nhan, a garage owner in Thu Duc City, Ho Chi Minh City, attributes this to consumers’ reluctance to purchase Chinese vehicles due to perceptions of low quality associated with their affordable prices. To counter this, carmakers initially adopted a high-pricing strategy to reassure buyers, along with technological advancements to showcase their quality. Nonetheless, Chinese automobiles continue to struggle in Vietnam, with some brands exiting the market mere months after entry, leading to inevitable inventory clearance sales.
Mr. Vo Minh Luc, Executive Director of BYD Auto Vietnam, acknowledges the challenge posed by high import taxes, which can reach 50%. He expresses hope that with the upcoming operation of BYD’s factories in Southeast Asia, the brand will benefit from preferential tax rates when introducing their vehicles to the Vietnamese market.
Text and Photo: N.Hai
– 04:46 29/06/2025
Foreign Block Sells Off a Whopping $2.3 Billion in a Single Session
Foreign investors offloaded a substantial 2,273.3 billion VND, with a net sell of 519.5 billion VND in matched orders alone.
The Sweet Escape: Indulging in Candy, Beer, and a Cheerful Tết
Less than a month before Tet, confectionery, food, and beer brands, in collaboration with retailers, kickstarted a series of promotions to boost consumer spending.
The Electric Car Price War: BYD Accused of ‘Unethical Business Practices’ as Suppliers Speak Out.
The request by BYD has incensed automotive parts manufacturers.
The Price War is Over: How Can Vietnamese Retailers Revive the Market for the iPhone 16 Launch?
This year, retailers are shifting their focus towards optimizing the user experience, from the shopping journey and product usage to after-sales care, moving away from the traditional price war strategy.
“Chinese Car Conundrum: Unraveling the Trust Issues”
The Chinese electric vehicle manufacturers are presented with a landscape of both opportunity and challenge as they venture into the international arena.
