The Prime Minister’s Decision 356 that approves the plan is aimed at controlling the growth of personal vehicles and satisfying the demand for high-quality cargo and passenger transport services.
By 2020, Vietnam will have 3.2-3.5 million automobiles, with cars making up 57pct, passenger coaches 14pct and trucks 29pct, says the plan. Those autos inappropriate for traffic infrastructure will be gradually phased out.
The plan states that administrative, economic and technical measures will be adopted to restrict the number of motorbikes at 36 million by 2020.
There are currently 1.5 million automobiles and 35 million motorbikes in Vietnam.
Given the annual consumption of 120,000-150,000 units, the target of 3.2-3.5 million automobiles is obtainable. However, the motorbike numbers don’t add up. Around 3-3.5 million motorbikes are sold every year, meaning there may be an additional 20 million units by 2020.
However, it is also said that the local motorbike market will reach its saturation point of 4.5 million units per year, while the total designed capacity of manufacturers in Vietnam is about to exceed five million units.