Numerous automobile brands and distributors are hastening the establishment of additional showrooms in the Vietnamese market, fueled by expectations of a robust rebound in consumption. This optimism stems from declining loan rates and increased tax incentives as the year approaches its end.

Auto trading firms are seizing opportunities amid the ongoing economic downturn and are investing millions of U.S. dollars to expand their auto showroom networks and enhance distribution channels.

These companies note that the consumption of goods and the demand for products typically witness a surge in anticipation of the Lunar New Year holiday, scheduled for February.

A spokesperson from Motor Image Saigon Company, an authorized Subaru distributor in Vietnam, mentioned that, in addition to its existing showroom in Ho Chi Minh City, the company inaugurated another in Hanoi in early December. This new showroom in Hanoi is one of the largest Subaru showrooms, capable of accommodating up to six different Subaru auto models.

Furthermore, the Subaru distributor has plans to open a 3,500-square-meter showroom in Bac Tu Liem District, Hanoi, in the second quarter of 2024.

Similarly, in preparation for the year-end holiday season, a Land Rover auto showroom, a British car brand, commenced operations in August.

Other local car distributors, including Haxaco, City Auto, and Savico, are actively investing in expanding their showroom networks nationwide. Haxaco disclosed that its distribution expansion initiative would incur a cost exceeding VND25 billion (US$1.03 million).

Meanwhile, City Auto, a distributor of Ford and Hyundai, plans to open six additional showrooms to extend its network to 15 auto shops across Ho Chi Minh City, Binh Duong, Tien Giang, Phu Yen, and Binh Phuoc Provinces by 2025.

Multiple auto trading firms are optimistic that the demand for cars will witness a resurgence in the remaining months of the year, driven by lower lending rates and favorable tax policies.

Commercial banks are expected to continue lowering lending interest rates to incentivize customers to avail consumer loans.