Vietnam carmakers warn of shutdowns due to low sales

TN News

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The Vietnam Automobile Manufacturers Association says many car assembly plants may have to shut down as sales fell sharply in the first four months, forcing carmakers to cut down their target for the year.

Total sales reached 29,500 units in the first four months, including 5,400 imported cars, down 42 percent from the same period last year, news website thesaigontimes.vn reported, citing the industry group.

Toyota and Vietnamese carmaker Truong Hai led the market, but their sales fell sharply too. The former reported a 30 percent sales drop while the Vietnamese company had to cut its SUVs output by half, according to the report.

If the market does not improve, many plants will have to stop production and many workers will lose their jobs, it cited producers as saying.

The Vietnam Automobile Manufacturers' Association earlier this year had projected sales to be around 140,000 units, the same as last year. However, the group now says the target should be 100,000, with some companies forecasting it could fall to 80,000 or so.

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