BizLIVE - Pham Van Dung, CEO of Ford Vietnam, talks to the Dau Tu newspaper about the factors that pushed up car sales in the country and the challenges that the future holds.
Macro Conditions Drive up Car Sales: Ford Vietnam CEO
Pham Van Dung, general director of Ford Vietnam. (Photo:
Pham Van Dung was appointed to general director of Ford Vietnam in July 2015, substituting Jesus Metelo Aria.
Car sales in Vietnam saw impressive growth in 2015. Could you name the factors behind this performance?
The first factor is Vietnam’s stable and buoyant economy, which grew by more than 6% last year. The following factors are rising purchasing power and low inflation.
Prices of petroleum products also exerted some influence. Low fuel prices drive up demand for cars around the globe as well as in Vietnam.
Do you think that the boom in car sales in 2015 stemmed somehow from fears that car prices would surge in 2016?
Demand for automobiles increased a little in December 2015 following the information saying that taxes would be raised in January 2016. However, the growth rate was inconsiderable in comparison with November 2015.
Therefore, the main drivers for car sales last year were macroeconomic improvements and consumers’ higher income.
As the first Vietnamese CEO of Ford Vietnam, how do you feel the pressure?
The principal challenge comes from the fact that Ford Vietnam has performed very well over the past few years. Thus my task is to keep this success in the years to come. Meanwhile, I have great support from a good system and professional staff.
Ford Vietnam reported encouraging sales in 2015. Are you under pressure to keep this pace in 2016?
Every business expects growth. Ford Vietnam is hoped to continue strong expansion but at a reasonable rate.
Thank you very much!
Vietnam was Ford’s third biggest market in Southeast Asia in 2015, after Thailand and the Philippines, said Mark Kaufman, president of Ford ASEAN.
Thailand surpassed all other ASEAN countries with overall sales of 36,463 units. The Philippines ranked second with 25,372 cars sold, up 25% year-on-year. Vietnam came third, with sales of 20,740 units, representing an annual increase of 48%.
The Thai-made Ford Ranger led the company’s sales within the bloc and became the best-selling pickup truck in Vietnam, Cambodia and Myanmar in 2014 and 2015.