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As of now, Ford is the only remaining American car manufacturer in the affordable segment selling to Vietnamese customers. Chevrolet left the market in 2018, and while Jeep and Ram are still present under the distribution of JVA, they are not as well-known among average consumers.
Potential Price Fluctuations
Ford’s current product lineup in Vietnam includes the 16-seat Ford Transit, Ford Territory, Ford Ranger, Ford Everest, and Ford Explorer. The Ford Everest is imported from Thailand, while the Explorer is the only model imported directly from the United States.
Currently, the Ford Explorer is priced at VND 2.099 billion for the sole Limited 2.3L version in Vietnam. Assuming an import price (CIF) of USD 50,000 for the Ford Explorer, import duties, special consumption tax, and VAT would push the selling price up to USD 108,900.
In the scenario where import taxes on cars from the US are eliminated, this selling price would theoretically drop to USD 82,500, a difference of approximately 24%. This equates to a hypothetical price of about VND 1.59 billion, a significant reduction from the current price.
If the Ford Explorer’s price were to decrease as hypothesized, this imported SUV would become more competitively priced against its rivals in the same segment. Currently, the Hyundai Palisade is priced at VND 1.469-1.589 billion, while the Volkswagen Teramont X ranges from VND 1.998-2.168 billion.
Potential for New Models
The elimination of import taxes on cars from the US not only helps make current models more affordable but also opens up opportunities for Vietnamese customers to access new Ford models and sub-brands.
Some of the highly anticipated models that could enter the Vietnamese market include the Ford Bronco, Ford F-150, Ford Expedition/Lincoln Navigator, and even the iconic Ford Mustang.
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The Ford F-150 is an iconic American vehicle known for its robust build, muscular aesthetics, and powerful engine. Image: Ford. |
The high import taxes have been a significant barrier preventing these models from entering the Vietnamese market. With the potential elimination of import taxes on US vehicles, will we see a flood of popular models like the Ford Bronco, Ford F-150, and Ford Mustang?
It’s possible, but there are also some considerations to keep in mind. Despite their immense popularity, the Bronco and F-150 are still large, heavy-duty vehicles with powerful engines that may be too noisy and costly to operate in Vietnam’s congested urban conditions.
The Ford Mustang, a classic muscle car, is fundamentally unsuitable for Vietnam’s road conditions, which lack sufficiently long and straight stretches of road for the Mustang to truly showcase its power.
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The Ford Mustang is an iconic muscle car and a symbol of American automotive culture. Image: Car and Driver. |
As a result, these purely American Ford models may not find significant sales success in Vietnam. This could be a reason why Ford might not be eager to bring large quantities of these models, even if import tax barriers are removed.
However, Ford could decide to import very limited quantities of these models. This approach would benefit Vietnamese customers by providing more purchasing options, potentially more competitive pricing, and maintaining the exclusivity of these American icons like the Bronco, F-150, and Mustang for collectors.
Ford’s bread and butter in Vietnam remain their locally assembled models. As of May, the assembled versions of the Ford Ranger sold 5,173 units, while the Ford Territory reached 4,521 units. The Ford Everest dominated the midsize SUV segment with 4,012 units sold, and the Ford Explorer found 130 customers, averaging 26 units per month.
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