How are car prices in Vietnam compared to the world?

Car prices in Vietnam are twice as high as in countries like the US, Germany or Australia, and nearly one and a half times higher than in "neighboring" countries like Thailand or Indonesia.

Based on prices compared to the US market, the auto site Jalopnik has released a list of the 10 countries with the most expensive cars in the world. This list does not include Vietnam, but if considered at an equivalent level, car prices in Vietnam are among the most expensive in the world - only behind some "special" countries with closed economies like Cuba, or having to limit vehicles because of their small area like Singapore.

Car prices in Vietnam are among the most expensive in the world.

According to data from the General Statistics Office, in 2016, Vietnam had an average income per capita of 2,215 USD/person/year. In the US, this index is 57,000 USD, 26 times higher than Vietnam. The difference is such, but unfortunately, a citizen in a developing country like Vietnam has to buy a car for an amount twice as high as a citizen in a country that is in the Top 5 richest countries in the world like the US. Now, let's compare car prices in Vietnam with 5 countries in 4 different continents: the US (America), Germany (Europe), Australia (Australia) and Thailand, Indonesia (Asia). This comparison is only relative, but at least, it helps us visualize where car prices are in Vietnam?

Take for example the prices of two popular car models in Vietnam, the Ford Fiesta and the Toyota Camry 2.5G. The standard version of the Fiesta currently starts at only $13,660, and the Camry at $23,070 in the US market, but in Vietnam, buyers have to pay $25,389 and $54,198 respectively, twice as much as in the US. That is the story of mid-priced cars, while luxury cars in Vietnam are almost three times as expensive. Americans only have to spend $99,575 to own a Mercedes-Benz S500, while Vietnamese people spend $286,735.

Although the average income per capita is only over 2,000 USD/year, still considered a poor country, Vietnam is a country with some of the most expensive car prices in the world, 2 to 3 times higher than in developed countries and about 1.5 times higher than in other countries in the region.

Car prices in Vietnam are also twice as expensive as in Europe or Australia. Although the Fiesta in Vietnam, Germany or Australia are all imported cars, Germans only have to pay over 13,000 USD, Australians pay nearly 12,000 USD to own a small Ford model. Exactly half the price of 25,389 USD that Vietnamese people have to pay to "bring" a Ford Fiesta home.

Closer to home, let’s look at the ASEAN countries of Thailand and Indonesia. In Indonesia, 8 years ago, the government planned to develop small, low-cost cars. Low-cost cars are clearly defined to cost between 4,400 USD and 7,400 USD, with a maximum fuel consumption of 5 liters/100 km. The required localization rate is 60%. Indonesia’s goal is to give people with average incomes the opportunity to own a car, while increasing production and developing the auto industry.

As a result, a series of low-cost car models have been launched to meet the needs of the people. The common people in Indonesia can now easily buy a car priced under 10,000 USD with a 1.0L engine such as Mitsubishi Mirage, Daihatsu Ayla, Honda Brio Satya... In Vietnam, that is not the case.

Suzuki Swift model in Vietnam is one and a half times more expensive than Thailand

Thus, although the average income per capita is only over 2,000 USD/year, still considered a poor country, Vietnam is a country with one of the most expensive car prices in the world, 2 to 3 times higher than that of developed countries and about 1.5 times higher than that of countries in the region.

In Vietnam, the domestically assembled Suzuki Swift costs 609 million VND, but in Thailand, the selling price is only 600,000 Baht - or nearly 400 million VND. Having the same factory and assembling domestically, the price of cars in Vietnam is 1.5 times higher than in Thailand (in the specific case of Suzuki's Swift model), this proves that a car in Vietnam has to bear too many taxes and fees, so the price of a new car is much higher.

According to VNN