Ford upbeat on Vietnam despite risks

US carmaker Ford Motor Co is keeping its optimistic outlook on car sales in Vietnam this year, though shipments of Thai-made cars there have been postponed.

Vietnam tightened inspections for all imported cars at seaports earlier this year after an import duty for Thai-made vehicles was eliminated under the Asean Free Trade Area.

Most car exporters in Thailand, including Toyota and Honda, have decided to hold back their vehicle shipments to Vietnam, as they feel hesitant about how long the inspections will take.

Yukontorn Wisadkosin, president of Bangkok-based Ford Asean, said the company’s car stock in Vietnam is only sufficient to last this quarter.

“But Ford is not worried about this issue, as it can allocate some models, such as the Ranger pickup, to be assembled at the facility in Hai Duong, Vietnam,” she said.

The Ford plant makes 20,000 units annually.

Ms Yukontorn said Ford is awaiting developments from the Vietnamese government and Vietnam Automobile Manufacturers Association, adding that the inspections could take 2-3 months, versus less than a month under the previous regime.

Ford plans on conducting a trial shipment to Vietnam as it awaits a clear-cut policy from the government.

In Asean, Vietnam is Ford’s third-best market, after Thailand and the Philippines.

Last year, Ford sold 28,588 cars in Vietnam, down 1.5%, with buyers awaiting new retail prices after the elimination of import duties.

As a result of the inspections, Ford’s sales in Vietnam slipped from January to February with 3,505 cars sold, down 20.8% year-on-year.

But sales in Thailand and the Philippines were healthy during that period, registering 10,463 units (+40.4%) and 4,597 units (14.4%) sold, respectively.

Ms Yukontorn, also managing director for Ford Thailand, said local sales have seen growth in line with the overall car market.

The Ranger pickup is Ford’s flagship model in Thailand, with 8,464 units sold from January to February, jumping 42.1%.

Ford ranks third in the pickup segment with a 13.9% market share, after Isuzu and Toyota.

Ms Yukontorn expects the overall car market in the country reach 920,000950,000 cars sold in 2018, compared with 870,748 in 2017.