HANOI, June 14 (Xinhua) -- Vietnam's auto sales fell for a second straight month in May as consumers hit the brakes on spending amid economic uncertainty, Vietnam News Agency reported on Wednesday.
Total vehicle sales in May fell 8 percent from April to 20,726 units after a sharp month-on-month drop in April, data from the Vietnam Automobile Manufacturers' Association (VAMA) showed.
Sales by VAMA member-manufacturers tumbled 36 percent to 113,527 units in the January-May period from a year ago, of which local sales of Vietnam-made vehicles plunged 43 percent and imported cars declined 23 percent, the VAMA said.
Total new-vehicle sales for tourism vehicles in the first five months of the year slumped 41 percent from the year-earlier period, commercial vehicles sales dropped 12 percent, and special-purpose vehicles sales dived 63 percent.
The drop in sales in two consecutive months is a result of the collapse in demand amid economic difficulties, which have made businesses and consumers tighten their belts, said industry experts.
The Vietnamese government is laying the groundwork to cut registration fees levied on locally-made cars by half as the ongoing economic slowdown has dampened demand for vehicles.
The cut, scheduled to be effective for six months starting from July, would reduce the government's budget revenue by up to 9 trillion Vietnamese dong (about 380 million U.S. dollars), according to the Finance Ministry.
Vietnam's previous cuts in 2021 and 2022 sharply boosted car sales, however, the Finance Ministry raised concerns that the upcoming cut would not revive auto sales as much as the two last cuts since it is not a supply problem as it was during COVID-19 lockdowns, but rather the problem now is on demand side. ■
