Car prices rise on stronger dollar

HCMC - Customers now have to pay more for locally assembled and imported cars as some enterprises have revised up selling prices given the strengthening of the U.S. dollar against the Vietnamese dong.

The central bank’s latest move to let the dong fall by 2.09% against the dollar has put a number of companies on tenterhooks, especially those importing cars from abroad.

With a weaker dong, the new trading price range is VND18,364-VND19,500 per dollar, instead of the previous VND19,100.

Earlier, on February 10, the central bank also changed the reference exchange rate by 3.4%, with the dong trading at VND17,941 to VND18,544 per dollar, which allowed the spot rate to be as high as VND19,100. Then almost all auto importers increased prices.

According to showrooms of imported cars in HCMC, business has been dull since early this month when they announced new prices following the central bank decision. They said the weakened dong had hurt their business.

For example, buyers of a Kia Forte car priced at US$32,000 would have to spend at least VND13 million more when the dong was used for payment.

With the continued rise of the dollar plus higher interest rates for consumer loans, VAT and registration fees, car consumption would see no growth or even fall this year.