Xinhuanet Nanning on December 28th (Reporters Li Jia, Meng Hua, and Liu Xiangxuan) In recent years, Sino-Vietnamese trade has maintained a good momentum of development. The two sides have already proposed that the two countries’ trade will reach 10 billion U.S. dollars in 2010. Under this background, the cooperation in the automotive industry in China and Vietnam has received more and more attention from companies. According to Vietnam's statistics, in the first three quarters of 2005, China’s trade volume for exports of automobiles (including spare parts) to Vietnam reached more than 47 million U.S. dollars, an increase of 275% year-on-year. Professor Li Xinguang, a member of the China International Economic Cooperation Association, believes that dominating the international market with price advantage is a major feature of Chinese companies. However, if the strategy of “going out†is not properly adopted, the inexpensive and inexpensive sign may attract new “Chinese product threatsâ€. On the
Other hand, Chinese auto companies have been "outgoing" in Vietnam's auto market but have been "instability."
Recently, Vietnam’s relevant media published articles on the Vietnam automobile market that will set off a “hot boom†in Chinese cars. According to media reports, the Vietnamese electromechanical market will once again usher in the impact of cheap Chinese cars after the impact of cheap Chinese motorcycles a few years ago. More than a dozen brands of Chinese automotive products are assembled and sold in the automotive market in Vietnam, and their prices are more than two percent lower than similar models in Korea, Russia and other countries.
In an interview, the reporter found that although many protective measures of the Vietnamese government for the automotive industry have not yet been abolished, many Chinese brand cars (mainly trucks and buses) have emerged in the automotive market in Vietnam.
According to the Ministry of Industry of Vietnam, currently more than 30 enterprises in Vietnam (mainly in the northern region) are allowed to import automotive parts and components for assembly and production, and almost all imported automobile parts and components are from China. There are 11 Chinese auto brands assembled: Dongfeng, Qingqi, Long March, Lifan, Jinbei, Beiqi Foton, and Kowloon.
The Ministry of Transport and Communications of Vietnam stated that currently there are 25 Vietnamese automobile sales agencies that sell 9 kinds of Chinese brand cars in the north and southwest of Vietnam. The market price is 20-30% cheaper than similar Korean products.
Yan Yaoxin, deputy director of the Guangxi-based Pingxiang Business Bureau in China-Vietnam border city, believes that the biggest magic weapon for Chinese auto companies to compete in the Vietnamese market is the price advantage, but they only rely on low-end auto products to hit overseas markets and even rely on competitive prices to obtain short-term returns. Only Chinese companies can continue to wear "cheap products" hats.
Large-scale automobile companies from South Korea, Japan, Russia and other countries have long been the "main force" of the Vietnam market. A senior official of the Ministry of Industry of Vietnam once predicted on the Internet that by 2006 China's trucks, buses, trucks, and special-purpose vehicles will have a car war with South Korea, Japan, and Russia.
The expansion of the export scope of Chinese auto companies will inevitably affect the interests of multinational automobile giants, and will be met with pressure from multinational automobile giants and panic among domestic auto companies in Vietnam. Han Chunhuan, general manager of a Korean automotive sales company in Vietnam, believes that Chinese trucks and buses sell well in Vietnam, and that the automobile market in Vietnam will have a war on the price of cars. "We are facing fierce competition in China's auto brands, models, prices and quality."
Quality problems have become the killer of Vietnam's industry management departments and media to exclude Chinese auto products. Some Vietnamese media have stated that Chinese cars that are being sold in the Vietnamese market mainly use Euro I standard engines. This standard has been discontinued in China for many years, but Vietnam has become the main market for consumption of this standard; the Ministry of Industry of Vietnam was in mid-October 2005. After conducting one-on-one raid inspections on more than 30 companies that import auto parts parts in China, only 14 companies' production equipment, production processes and technologies have reached the standards set by the Ministry of Industry of Vietnam to varying degrees.
In an interview, the reporter found that most of the automotive products exported to the Vietnamese market in China are based on sales channels and service networks provided by local distributors. This undoubtedly left the company’s credits in the hands of others and fell into being “monarchsâ€. The trap of "turning" but unable to justify is an unavoidable thing.
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