Hanoi (VNS/VNA) - Vietnamese firms spent over 903 millionUSD in the first quarter importing 41,780 completely-built-up (CBU) cars,according to a report by the General Statistics Office (GSO).

The cumulative import turnover of CBU cars in Q1 2023 increased by76% in volume and 60.8% in value compared to the same period last year.

In March, 15,000 cars worth 332 million USD were imported into Vietnam,representing a year-on-year increase of 48.8% in volume and 48.5% in value.

Despite the increasing number of imported cars, the VietnamAutomobile Manufacturers' Association (VAMA) said that sales for the wholemarket in the first two months reached just over 17,300 units, due to poorpurchasing power.

Local auto experts said this was an unusual and ominous signal aspressure from automobile inventory remains high.

In February alone, purchasing power increased significantly due topromotion campaigns offered by automakers, with a total sale of 28,913 units.

The local auto market is forecast to become break in 2023. Anuncompleted statistic shows that Vietnam’s inventory of cars reached 38,000units.

Facing the gloomy prospect of the market, VAMA has recentlyproposed that the Government halve the registration fee for locally-assembledor manufactured cars during the first half of the year to boost market demand.

In a letter sent to the Prime Minister, both the VietnamAutomobile Manufacturers Association (VAMA) and the Vietnam Association ofMechanical Industry (VAMI) also jointly asked for an extension of the deadlineto pay excise tax.

The Vehicles Importers Vietnam Association (VIVA) has raised itsvoice to ask for fair treatment after hearing that the Government asked theMinistry of Finance and other relevant ministries to devise a 50% cut on autoregistration fees for locally assembled or manufactured cars.

VIVA said auto importers are facing high inventory, so they alsowant to enjoy the same support policy from the Government.

Vietnam saw a sharp increase in purchasing power in the last six monthslast year, marking a record milestone for the first time in car sales with500,000 vehicles sold. Of the figure, CBU cars accounted for over 40%.

A representative of a car importer attributed the increase inimported cars in the first three months to purchasing contracts already signedwith foreign sellers in 2022, noting that there is no reason for local carimporters to purchase more cars this year as they are facing large unsold carsdue to local poor purchasing power.

The import turnover of CBU cars is forecasted to continue todecline this year. Unless the support policy from the Government is applied toboth Completely Knocked Down (CKD) and CBU vehicles, the local car market maybounce back./.