Chinese Cars To Enter The Vietnamese Market Opportunities, Challenges And Strategies

Vietnam has witnessed rapid economic development since 1986. From the beginning of the 1990s, the Vietnamese market has undergone tremendous changes because of foreign cars'entering. At present, Vietnam has 11 joint-venture auto plant, 20 domestic auto assembly enterprises and 60 vehicle parts assembly factories. But there are still problems in Vietnam's auto market, such as high tariffs levied by the government and the imperfect domestic infrastructure. China is Vietnam's neighboring country, so there are many favorable conditions for the Chinese auto exports to Vietnam , such as the state situation, the good transport facilities and the similar cultural background. Therefore, Sino-Vietnamese cooperation in the field of automobile has raised more and more concerns. Based on the analysis of the Vietnamese auto market and its automobile policy, this paper discusses the opportunities, challenges and strategy during the exploration of China's auto to Vietnam's auto market. Combined with the investigation in the automobile market, some proposals are made for policy makers.