There is an automotive epidemic in Vietnam as domestic sales of motorbikes and cars have increased 8% and 31%, respectively, compared to the same period last year.
According to the Vietnam Association of Motorcycle Manufacturers, motorbike shops around the country sold more than 1.44 million vehicles during the first six months of 2016, reports Thanh Nien. That translates to around 8,000 new bikes hitting the streets everyday, while Vietnam’s car dealerships sold 136,000 units, or nearly 750 a day.
Industry insiders believe that many have been rushing to purchase cars to get around an increase in tax rates for luxury cars, which came into effect this July and has caused vehicle taxes to rise as high as 90-150%, according to Thanh Nien.
Reports from government agencies predict the demand for cars in Vietnam is likely to increase even more in future. This will put a lot of pressure on the already bottlenecked infrastructure of big metropolises like Saigon and Hanoi, where local authorities are scrambling to come up with measures to curb traffic, such as banning vehicles in Saigon and Hanoi and building a US$137.45 million bus system.
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