작성일자: 2013.12.10

작성자: 호치민 무역관 Ms. Phuong Nguyen (kotra.sgn@gmail.com)

 

 

1. Competition Trend and Distribution Channel

 

□ Competition trend

 

 ○ Because there is no official information and statistics on aerial lift truck and crane sectors respectively, this report will cover the truck market, which includes special purpose vehicles like aerial lift trucks to provide some insights in this field. According to some experts, Vietnam’s truck market has started to develop and witness a strong competition between importers and local automobile companies.

 

 ○ Vietnamese trucks market including special purpose trucks like lift truck is mostly dominant by brands from Japan, Korea and China:

  - Japanese brands primarily include Hino, Isuzu, Mitsubishi and Suzuki.

  - Korean brands are Hyundai, Daewoo and Kia.

  - China brands include Thaco, Dongfeng, Dongben, JAC, Faw, Fonton…

 

 ○ For cranes, most of them are imported from Japan and Korea such as UNIC, Tadano (Japan) and Soosan, Kanglim (Korea). Among those names, Soosan and Kanglim are officially distributed by Lexim (http://www.lexim.com.vn) and Me Linh Auto respectively. Meanwhile, Unic and Tadano are distributed by Samco (http://www.samco.com.vn ) and Truong Long Auto (http://www.truonglong.com/).

 

 ○ According to some distributors, Japanese and Korean trucks have advantages as save fuel and persisting machineries. However, their drawback is the high price compared to other brands from Chinese. In contrast, Chinese trucks take advantages with affordable price as cost of capital can regain quickly. However, quality of products is not good as other two trucks.

 

 ○ Some marketers have pointed out that four major factors that guarantee the success or failure of a truck enterprise are its brand name, price, product quality and after sale services.

 

 ○ According to some surveys, Hino – owned by Hino Motors Vietnam, is the most common name for truck in South West area. Since entering Vietnam in 1996, this brand has gained trust from customers. According to Mr. Nguyen Duy Hai – Representative of Hoa Lam Transportation Co., Ltd, Hino truck is tough, reliable, stable and excellent fuel-saving consumption. Besides, the Company is also appreciated for effective after sale services. For example, Hino distributors’ service departments usually call drivers to ask about the conditions of trucks and remind them of the filter replacement period and periodical maintenance.

 

 ○ Besides Hino, Hyundai is another brand that has achieved great success in Vietnamese truck market. Like Hino Motors Vietnam, Hyundai has also established facilities in Vietnam in order to increase their presence through Hyundai Vietnam. Hyundai trucks are widely used in North and South East areas. Meanwhile, China brands such as Dongfeng, Fonton, Thaco… are more popular in North area.

 

 ○ According to some distributors, Soosan and Unic are two most common names in the crane market. However, Soosan is more familiar with customers thanks to its economical price compared to Japanese products. Soosan cranes are not only used for Korean trucks like Hyundai, Kia or Daewoo, they are also widely used in Japanese trucks including Hino, Mitshubishi, Sizuki… Other Korean brand - Kanglim is more popular in North area.

 

□ Distribution Structure

 

 ○ Crane and lift trucks are brought into Vietnamese market mostly through both transportation importers and local automobile manufacturers. Importers, which include both commercial and specific purpose organizations, usually trade on both new and used lift trucks. After cranes are imported into Vietnam, they would be delivered to other dealers or go directly to end-users.

 

 ○ For local automobile organizations such as Hyundai, Daewoo, Kia, and Hino, they also import cranes for lift trucks. Besides assembling trucks, imported cranes would also help them to diversify the products and satisfy the demand of different customers.

 

 ○ Besides imported directly products, there is another channel which is very active in the domestic market. Once projects are finished, all equipments and machines including those kinds of truck and cranes will also be sold or rent to other projects. Therefore, besides buying new vehicles or equipments, customers can choose to rent cranes and lift trucks as a cost-saving option.

 

 

2. Retail Price

 

 ○ The information below is the reference price of some of lift truck brands available in Vietnamese market.

 

Image	Specification	Retail price (VND/Unit)
	Aerial lift truck Hino FC3JLUA   Capacity: 10.4 tons	VND505 millions (US$23,888)
	Aerial lift truck T5090.YJ/TC.KS1153   Origin: made in China Crane capacity: 6 tons	VND560 millions (US$26,490)
	Aerial lift truck HYUNDAI HD72   Crane capacity: 3.5 tons	VND480 millions (US$22,706)
	Aerial lift truck ISUZU with UNIC crane   Crane capacity: 3 tons	VND550 millions (US$26,017)
	Aerial lift truck Samco Mitsubishi Canter 4.7 TM6i   Crane Capacity: 4.7 tons	VND475 millions (US$22,469)
	Aerial lift truck Faw CA1258P1K2L11T1 14.5T   Crane capacity: 14.5 tons	VND1,440 millions (US$68,117)
	Aerial Lift truck with Kanglim Crane KS1153   Crane capacity: 5 tons	VND340 millions  (US$16,083)
	Aerial lift truck HINO - FJ8JPSB 5 ton   Crane Capacity: 5 tons	VND710 millions (US$33,586)
	Aerial lift truck HINO WU422L   Crane capacity: 2 tons	VND650 millions (US$30,747)
	Lift truck HINO - FJ8JPSA   Crane capacity: 8 tond	VND1,270 millions (US$60,075)
	Aerial lift truck Hino FL8JTSA 13.2 ton   Crane capacity: 13.2 tons	VND1,770 millions (US$83,727)
	Aerial lift truck Viet - China DVM8.0/TB - T2   Crane capacity: 7.5 tons	VND430 millions (US$20,340)
	Aerial lift truck Fonton AC990   Crane capacity: 9 tons	VND620 millions (US$29,328)
	Aerial lift truck Daewoo CSS500   Crane capacity: 14.7 tons	VND2,300 millions (US$108,798)
	Aerial lift truck Hyundai HD170   Crane capacity: 8.5 tons	VND1,430 millions (US$67,644)
	Aerial lift truck Hyundai HD250 with Kanglim Crane   Crane capacity: 8 tons	VND1,725 millions (US$81,598)
	Aerial lift truck Hyundai HD72 with Unic Crane U430   Crane capacity: 3 tons	VND1,000 millions (US$47,303)

Sources: http://www.vatgia.com/s/xe+t%E1%BA%A3i+c%E1%BA%A9u)

Remarks: - The above prices are retail prices which excluded VAT 10%

                - Exchange rate: US$1 = VND21,140 (December 6th , 2013 at Vietcombank)

 

 

3. Custom Rate (For Cranes and Aeriel Lift Truck)

 

□ Summary of Import Tariff Rates of Products under HS Code 8705.90

 

 ○ Of special purpose motor vehicles, other than those principally designed for the transport of persons or goods --- Other

 

Import Tariff Rates Levied On Products Under HS Code 8705.90 (%)

HS Code	Item Description	MFN	ASEAN	ACFTA	AKFTA
8705.90	Other:
8705.90.50	Street cleaning vehicles;   cesspool emptiers; mobile clinics, spraying lorries of all kinds	5%	0%	5%	5%
8705.90.90	Other	0%	0&	5%	0%

Sources: Circular No. 217/2009/TT-BTC dated November 17, 2009; Vietnam General Export, Import Tax form according to the Decision 216/2009/QD-BTC dated November 12, 2009 of the MOF; Circular 131/2008/TT-BTC of the MOF dated December 26, 2008 on introducing the implementation of value added tax (VAT) according to goods catalog of preferential import tariff.

 

  - MFN: Most favorable nations (applied also for imported goods from Korea)

  - AKFTA: Asean – Korea Free Trade Area (applied for imported goods from Korea)

  - ACFTA: Asean – China Free Trade Area (Applied for imported goods from China)

  - CEPT: Asean Free Trade (applied for Asean-member nations)

 

□ VAT Tax

 

 ○ The VAT rate of 10% is applied for commodities under HS Code 8705.90 according to the Export-Import Tariff and Value Added Tax on Imports.