Vietnam News Network

Vietnam News: Local, National, Business, Sport, Entertainment and Technology

Trade XRPUSD, Bitcoin and Cryptocurrencies

BUY & SELL XRPUSD | View XRPUSD News & Updates


Buy Sell XRPUSD, Bitcoin and Cryptocurrencies

Car market pale because of … banks   2008-11-10 - TBKTVN

The sharp falls of car sales have been attributed to several reasons. Besides tax and ownership registration fee increases, car manufacturers have also blamed slow sales on banks tightening loans.

 

 
The car market has been gloomy since April 2008, when car part taxes increased by 5-10%. However, purchasing power did not see a sharp decrease until May.

Car sales saw more dramatic decreases in July, August and September. In July, the sales of the members of the Vietnam Automobile Manufacturers’ Association (VAMA) dropped to 8,458 units. They continued to drop to 7,809 units in August.

 

Sales then plummeted dramatically to the abysmal depth of 5,180 units in September, the deepest low since the beginning of the year.

 

It also happened that during this time, the credit growth rate in general, and consumer credit growth rate in particular, was at a low level.

 

In July, August and September, the credit growth rate of the banking system dropped to 0.7-0.9%. In the first nine months of the year, the credit growth rate just reached 18.03%, much lower than the 30% of the same period of last year.

 

A credit officer of SeABank in HCM City said that the bank has not been providing loans to fund car purchases for the last few months. Meanwhile, the bank is considered a pioneer in funding consumer purchases.

 

Analysts have pointed out that consumer credit always has big impacts on the car market as this decides the demand and the payment capability of people.

 

Dr Udo Loersch, Chairman of VAMA, believes that the tightened credit is the main reason behind the sharp fall of the domestic car market.

 

Duong Kim Thoa from Hanoi-based Dong Hai Automobile Company said that the inaccessibility of bank loans has led to purchasing power down by 50%.

 

However, there are signs that banks will resume consumer credit, including funding car purchases in installments, which has sparked the hope that the domestic market will recover in the time to come.



Other news

Inaccurate share analysis hampers market, say experts   2008-11-10

Deflation a genuine threat to real-estate market   2008-11-10

HSBC explains foreigners’ net sales   2008-11-10

BUSINESS IN BRIEF 10/11   2008-11-10

ANZ won’t sell STBs   2008-11-10

Deflation a genuine threat to real-estate market   2008-11-10

Vietnam stocks set to bounce back on falling gas prices   2008-11-10

Electronic goods buyers to brave stormy times   2008-11-09

Building booms as construction costs drop   2008-11-09

BUSINESS IN BRIEF 9/11   2008-11-09

Car sales drop 37 percent   2008-11-08

Hanoi drainage under the lens after catastrophe   2008-11-07

Central bank widens forex trading band to 3 percent   2008-11-07

Japanese bank to open second branch in Vietnam   2008-11-07