Brian Jeffrey
Several countries have imposed high tariffs on Chinese vehicles due to unfair competition practices. For instance, Canada, the United States, and the European Union have all set tariffs on Chinese electric cars.
The Center for Strategic and International Studies (CSIS) reports that China has heavily invested in its electric vehicle industry over the past decade, leading to significant growth and overcapacity.
With a substantial number of automotive manufacturers and an annual production capacity of around 40 million vehicles, China now faces a surplus in its electric vehicle sector, prompting manufacturers to seek global markets such as Vietnam.
Chinese brands like BYD, Geely, and Chery are tapping into Vietnam’s market, which is seen as promising due to its large population and interest in new technologies.
Vietnam aims to have a million vehicles on its roads by 2030 and transition to clean energy by 2050, providing a favorable environment for electric vehicles.
Chinese car manufacturers are gearing up to expand their presence in Vietnam, with plans to establish numerous dealerships across the country to cater to the rising demand for electric vehicles.
However, concerns have been raised by the Vietnam Automobile Manufacturers Association (VAMA) about the potential competition that inexpensive foreign electric cars, particularly from Chinese brands, may pose to domestic manufacturers.
Experts warn that Vietnamese authorities need to enact protective measures to safeguard the local automobile industry from the influx of competitively priced foreign electric vehicles.
Associate Professor Nguyen Thuong Lang suggests implementing clear regulations and imposing tariffs on low-cost imported electric vehicles that could jeopardize domestic production.
Strategic actions need to be taken to address the impact of foreign subsidies on the local market and ensure a level playing field for domestic automobile manufacturers.
