Thorough Explanations Enhance After-Sales Service Satisfaction in Vietnam

Vietnam01New-vehicle owners in Vietnam prefer to have the type and scope of maintenance or repair work explained prior to their service visit and after the work is completed at the dealer or authorized service center, according to our 2013 Vietnam Customer Service Index (CSI) Study. When a service advisor provides explanations at the beginning and completion of work, satisfaction improves significantly—by 24 points (on a 1,000-point scale). Continue reading ›

Sales Satisfaction Up in Vietnam Market; Test Drive Can Make a Difference

Traffic on Vietnamese StreetOverall satisfaction with the new-vehicle purchase experience at the dealership has improved by 4 points in 2013 to an average 850 points (on a 1,000-point scale) from 846 points in 2012, according to our 2013 Vietnam Sales Satisfaction Index (SSI) Study. Yet, even with this year’s higher satisfaction score, the study finds areas where dealers can improve sales satisfaction, including offering customers a test drive and spending more time with the buyer during the delivery process.

Offering a test drive—which averages 17 minutes in 2013, compared with 19 minutes in 2012 and 21 minutes in 2011—to new-vehicle buyers who visit a dealership in Vietnam can increase customer satisfaction with the sales process, the study finds. Slightly more than one-third (36%) of buyers actually test drive a vehicle. Continue reading ›

Chevrolet Pushes Sales in Southeast Asia with Trailblazer, Sonic

General Motors’ Chevrolet brand has begun a major push to increase its small 2% market share in Southeast Asia with the introduction of the Trailblazer midsize SUV and Sonic sub-compact. Both models went on sale in Thailand in July, and will also be subsequently released across the region.

The Trailblazer, priced from US $34,000-$47,000, is offered with two engine choices: a 2.5-liter engine with output of 150 hp and a 2.8-liter engine producing 180 hp. Both versions are mated to a 6‐speed automatic transmission with manual shift mode. The Trailblazer will be facing stronger competition from models including the Toyota Fortuner and Isuzu Mu‐7. Continue reading ›

Vietnam Likely To Become An Import Market—Transfers to Cars from Motor Bikes

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The growing importance of Vietnam as the next big automotive market in Southeast Asia is undeniable. With an estimated 20 million bikes on the road, compared to a car population of 1 million vehicles, the potential is clear to see. Income levels are slowly rising–real GDP per capita (in 2005 US Dollar terms) has increased from US $468 in 2000 to US $834 in 2010, according to Oxford Economics, which works with J.D. Power Automotive Forecasting.

Manufacturers are hoping that the transition from two-wheelers to cars will happen sooner, rather than later. However, how the industry develops further and what direction it takes will pretty much depend on government policies on taxation, infrastructure development and investment promotion.

We think Vietnam will transform to an import vehicle market over the long term. We believe the country’s commitments towards the ASEAN Free Trade Area (AFTA) agreement to be the major driver behind this slowly shifting trend.

Vietnam to Cut Import Taxes on Vehicles

Under the deal, Vietnam is obliged to reduce import duties on completely built-up (CBU) vehicles from Southeast Asian countries to 0% by 2018. In accordance with this schedule, import duties on vehicles built in ASEAN countries are to come down from 83% to 70% this year. Apart from this, Vietnam is also cutting import taxes on vehicles with different engine sizes under its obligations to the World Trade Organization. Plus, import duties on 4-wheel-drive vehicles were reduced from 77% to 72% under the new tax rate. Continue reading ›

Vietnam Sees Gains in Customer Service Satisfaction

Overall customer service satisfaction in Vietnam increases by 12 points from 2009 to 830 (on a 1,000-point scale), partly due to an improvement in service standards at authorized dealer service centers, according to the J.D. Power Asia Pacific 2010 Vietnam Customer Service Index (CSI) Study.SM

“Vehicle pick-up is a critical step in the service . . . Continue Reading Vietnam Sees Gains in Customer Service Satisfaction