Vietnam Economy

nom frugal Vietnam has during the extend two decades developed into a dynamic and fast suppuration market also in elevator car industry. Economic reforms, membership of WTO since two hundred7 and an striking number of foreign investments, the notable increase in GDP, in volumes demand for mellowed quality product and the almost-zero of the domestic automobile industry have led Vietnam to become the potential market for Volkswagen. The globose crisis led to a temporary slowdown of Vietnams fast economical growth, exclusively growth is back on track with 6. % growth in 2010 and more than 7% per year expected in 2011-2015. Table 1 Vietnam GDP real growth rate (%) pic Source Source popular Statistics Office of Vietnam The rate of economic growth has during the last decade amounted to 7-9% per year, amongst the highest save growth rates in the world. The GDP per capita is USD 1160 (2010), and an change magnitude number of Vietnams 87 million inhabitants demand consumer pro ducts of higher quality. Table 2 Vietnams GDP per capital (US$) picSource General Statistics Office of Vietnam However, the average income in Vietnam is still fairly low in comparison with the company expense (about.. cai nay lay so lieu ben product nhe, to k tim duoc). check to Background note of Vietnam recorded by U. S Department of express in http//www. state. gov, Vietnams per capita income in 2010 was just $1,168 wiz person per year. Whereas, trade cars in Vietnam have to suffer upto 3 kinds of duty, including Import Duty, Extra Duty, and note value Added Tax.Regardless of how strict Vietnam taxation policy is, the accession agreement which was peremptory for Vietnam to become WTOs member in 2007 obliged Vietnam to lower its effect tariffs and to welcome foreign investments in most commercial sectors of the economy. Certain sectors argon partly protected against foreign competition in an interim period, but from 2012 respectively 2014 all sectors of the economy must we lcome foreign goods and work as well as investors on an equal footing with topical anesthetic companies and investors.Therefore, we totally hope that in the upcoming period, such a 200% tariff for exported cars will not exist. Vietnam automobile market is not that openhanded but it sees a potential signal. According to General Statistics Office of Vietnam http//www. gso. gov. vn/default. aspx? tabid=393&idmid=3&ItemID=11605 to k biet trich nguon ntn cho dung voi Harvard form ca T_T, the demand for imported cars, especially types of fewer than 9 seats which makes of approximately 70% in total, keeps increasing remarkably, from 21279 units in 2005 to 51059 in 2008 and reach the number of about 80410 in the last year.Whereas the domestic automobile industry seems to not improve at all. Until now, the domestic company still can not produce even integrity car. Vietnamnow has 10 automobile JVs including unity 100 % foreign-owned enterprise (GM Daewoo), one domestic manufacturer (Tru ong Hai). The manufacturers make vehicles of 17 world brands Fiat, Sangyong, PMC, Mazda, Kia, Chevrolet, Daewoo, Mitsubishi, Mercedes Benz, Suzuki,Toyota, Isuzu, Ford, Hino, Hyundai (trucks, bus), Chery and Honda.In this moment, Volkswagen is one of more then 10 brands having distribution channel in. These brands include BMW (Euro Auto), Audi, Porsche (PSC), Hyundai (Thanh Cong), Lifan (Bao Toan), Chrysler (IC Auto), Subaru (MIV), ring Feng,MAN (VMC) and Fiat Alfa Romeo (Mekong Auto), who are all considerable competitors. It is a groovy opportunity for the company to dominate Vietnam market but also a challenge when our products are almost kind of high quality with high price.