Vietnam auto market small but full of potential: Ford Vietnam

VietNamNet Bridge – Michael Pease, who has come from Malaysia to Vietnam to take the post of Director General of Ford Vietnam, said that Vietnam’s automobile market remained small but had a lot of potential, like a child who needs more care to grow up.

VietNamNet Bridge briefs the conversation between Thoi bao Kinh te Vietnam's reporter and Ford Vietnam's Director General Michael Pease.

Director General of Ford Vietnam Michael Pease

Had you heard anything about Vietnam before coming to the country to take the post of Ford Vietnam Director General?
 

I came to HCM City seven or eight years ago. The biggest impression on me at that time was the big number of bicycles. When I returned to Vietnam several days ago, I found out that these bicycles have been replaced with motorbikes, and I hope that the motorbikes will be replaced with cars in 7-8 more years.

What do you think about Vietnam now?

Vietnam is very close to China, both in geographical distance and market characteristics, including the automobile market. Therefore, I can say that Vietnam is a very dynamic market which promises both big opportunities and challenges for enterprises.

Naturally every market has its own characteristics. After 15 years of working in East Asia, I have found out that I should understand my clients very well. Therefore, I think that I will seek necessary information not only from the events or through sales system, but also from direct meetings with clients.

What are your comments about the policies being applied to the local automobile industry?

Vietnam and other countries in Asia all are trying to impose high taxes on cars, and as a result, taxes always account for a big proportion of car selling prices. Therefore, it is understandable why Vietnamese customers always have to buy cars at high prices.

The government of Vietnam, on one hand, aiming to protect local automobile production, on the other hand, trying to limit the number of cars in circulation due to bad infrastructure, has been levying high taxes on cars, including imports. However, I think that with the commitments made when joining the WTO, the government will gradually lower taxes on cars.

I think that Malaysia also imposes high taxes on cars like Vietnam. Previously, the country always tried to protect the local automobile industry, but it is now trying to treat all car manufacturers equally.

The government of Vietnam has lowered the tax on brand new imports under the form of complete built units (CBU). However, in order to obtain car price reductions, it should consider the two factors that create car selling prices: tax and market scale. Low tax rates and big market will lead to low selling prices.

Ford Vietnam has been facing a lot of difficulties in Vietnam, as it has won less favour from Vietnamese customers if compared to other brand names. Do you think so?

I know Vietnamese customers do not like Ford products very much. They simply think that Ford cars consume too much fuel, and they have the wrong idea. I think I will have do my best to change this mentality. Besides, Ford Vietnam will try to use new technologies for our products, improve quality while lowering selling prices.