Introduction of Government Policy such as Europe-Vietnam Free Trade Agreement (EVFTA) and Ban of Motorbikes will positively impact the sales of Used Car in Vietnam: Ken Research

Key Findings
• The Europe-Vietnam Free Trade Agreement (EVFTA) and the Europe-Vietnam Investment Protection Agreement (EVIPA) in the Year 2018 due to which the taxes on imported new cars from Europe to Vietnam will drop to 0% in the next 9 to 10 years will create new competitiveness in the used car market in Vietnam.
• Cars under the age bracket of 2-4 years will account highest market share in terms of sales volume during the period 2018-2025E due to the faster replacement period of a vehicle which is expected to reach 3.6 years by the end of 2025.
• In future, Vietnam Used Car market will be dominated by the Japanese and Korean brand cars accounting more than 50% of the market share.

Rising Government Initiatives: Vietnam and the European Union officially signed the Europe-Vietnam Free Trade Agreement (EVFTA) and the Europe-Vietnam Investment Protection Agreement (EVIPA) in the year 2018 due to which the taxes on imported cars from Europe to Vietnam will drop to 0% in the next 9 to 10 years. It will thus create new competitiveness in the used car market in Vietnam. Moreover, the Ban of Motorbikes in certain regions by 2030 will significantly increase the sales of used cars in the country as purchasing a new car will become too expensive for the lower income group in Vietnam.
Dominance of Japanese and Korean Brand Vehicles: In future, Vietnam Used Car market will be dominated by the Japanese and Korean brand vehicles such as Toyota, Kia, Honda and Mazda accounting more than 50% of the market share. This is largely due to ease of finance and customer confidence coupled with fuel efficient car models, strong body type of cars, high resale value of these brands and convenience associated with maintenance and services.
Rapid Demographic and Social Change: The population in Vietnam has been growing over the years and is expected to expand to 120 million by 2050 from 97 million in 2018. Moreover, the middle class population is expected to reach 26% by 2026 from 13% in 2018. Since Vietnam’s middle class is thought to be responsible for more than 50% of the country’s total consumption. Therefore, rising middle class population and increasing car ownership ratio from 13.6 (per 1,000 people) as of 31st December 2013 to 16 (per 1,000 people) as of 2017 will positively impact the used car sales volume in Vietnam.
Analysts at Ken Research in their latest publication “Vietnam Used Car Market Outlook to 2025 - By Type (Sedans, SUV’s, MPVs, Hatchbacks, CTVs and Others), By Vehicle Age (0-2 Years, 2-4 Years, 4-6 Years and more than 6 Years), By Cities (Hanoi, HCMC, Hai Phong, Da Nang and Others) and By Brand (Toyota, Mazda, Kia, Honda, Ford, Chevrolet, Mitsubishi and Others)” observed that the Used Car Market in Vietnam will increase due to increasing middle class population coupled with faster car replacement rate and introduction of government policies such as EVFTA and Ban on Motorbikes.
The market is expected to register a positive CAGR of 11.2% in terms of sales volume during the forecast period 2018-2025.

For more information, refer to below link:
https://www.kenresearch.com/automotive-transportation-and-warehousing/automotive-and-automotive-components/vietnam-used-car-market-outlook/268336-100.html

Key Segments Covered

By Type of Vehicle
• Sedans
• SUV’s
• MPVs
• Hatchbacks
• Cross Type Vehicles (CTVs)
• Others
By Vehicle Age
• 0-2 Years
• 2-4 Years
• 4-6 Years
• More than 6 Years
By Region
• North
• South
• Central
By Cities
• Hanoi
• HCMC
• Hai Phong
• Da Nang
• Others
By Price
• Less Than VND 200 Million
• VND 200 Million – VND 400 Million
• VND 400 Million – VND 600 Million
• VND 600 Million – VND 800 Million
• More Than VND 800 Million
By Brand
• Toyota
• Mazda
• Ford
• Kia
• Honda
• Chevrolet
• Mitsubishi
• Others

Key Target Audience
• OEM’S Companies
• Multi Brand Dealers
• Captive Dealers
• Venture Capitalist Firms
• Government/ Regulatory Authorities
• Online Auto-Classifieds

Time Period Captured in the Report:
• Historical Period: 2013-2018
• Forecast Period: 2019E-2025E

Companies Covered:

Major Online Players in Vietnam
• Bonbanh
• Oto
• Carmudi
• Choxe
• Chotot

Major Captive Dealers:

• Than Xuan Ford
• Mercedes Benz An Du
• Hyundai Dong Do
• Toyota An Suong

Multi-Brand Dealers
• Anycar
• Viet Han Used Car
• Hien Toyota
• Hoa Binh Auto

Key Topics Covered in the Report
• Vietnam Used Car Market Overview and Genesis (Overview and Genesis, Business Cycle Graph)
• Vietnam Used Car Market Ecosystem
• Vietnam Used Car Market Value Chain Analysis
• Vietnam Used Car Market Business Model
• Used Car Market Size Vietnam
• Vietnam Used Car Market Segmentation
• Snapshot of Vietnam Used Car Finance
• Snapshot of Vietnam Online Used Car Market
• Buying Decision Parameters in Vietnam Used Car Market
• Trends and Developments in Vietnam Used Car Market
• Issues and Challenges in Vietnam Used Car Market
• Vietnam Used Car Market Regulations
• SWOT Analysis Vietnam Used Car
• Vietnam Used Car Market Competition Scenario
• Vietnam Used Car Market Future Projection, 2018-2025E
• Future Outlook of Vietnam Used Car Market Segmentations, 2018-2025E
• Analyst Recommendations

Related Reports
https://www.kenresearch.com/automotive-transportation-and-warehousing/automotive-and-automotive-components/china-used-vehicle-market/149475-100.html

https://www.kenresearch.ae/automotive-transportation-and-warehousing/automotive-and-automotive-components/indonesia-used-car-market-research-report/212624-100.html

https://www.kenresearch.com/technology-and-telecom/it-and-ites/uae-used-car-auto-classified-market/170500-105.html

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