The luxury automobile market grew by 30 per cent during the first six months of this year compared with the same period last year. — Photo autodaily.vn

HA NOI (Biz Hub) — The General Statistics Office (GSO) reported an increase of 59.8 per cent to 31,000 units in imports of Completely Built-Up (CBU) automobiles to the local market.

The figure also represents a 78.4 per cent rise in turnover to US$667 million during the first seven months compared to the same period last year. July turnover was the highest figure since last year with a value of $122 million, up 122 per cent.

The luxury automobile market grew by 30 per cent during the first six months of this year compared with the same period last year. Major players in the market included BMW and Audi. The latter imported 50 per cent more cars in the first half of 2014 than in the first half of 2013, according to General Director Laurent Genet.

Automobile companies said that the increase in CBU car imports was created by a slight demand increase in the general automobile market, the stability of domestic economy, easier access to low-interest loans for consumers and the gradual trend of people changing from motorbike to automobile travel.

"The State Bank of Viet Nam's recent 50 basis point cut to its benchmark refinancing rate to 6.5 per cent will help ease credit and make it more conducive for consumers to take on financing to purchase new cars," said Genet.

The Government cut registration fees to 10 per cent in major cities including Ha Noi, HCM City and Da Nang, and the import tax for automobiles purchased from ASEAN countries was reduced from 60 to 50 per cent.

Increasing demand for CBU automobiles from a number of "emerging" wealthy customers also contributed to the improvement of the market, said the director of Audi Vietnam. He expected more free market reforms in the coming years to boost economic growth due to the equitisation of the State-owned enterprises conducted by the Government. — VNS