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Strong Air Blade demand drives up imports
2010-0127
Motorbike traders have flocked to borrow high-interest loans in foreign currencies to import Air Blade scooters, a favorite product of Honda Motor Co. Ltd., from Thailand as the bikes have skyrocketed in price.
In the country, Air Blade scooters produced by Honda Vietnam cost VND45-47 million each, inclusive of taxes and fees, though the company-suggested Vị trí đặt quảng cáoprice is about VND32 million, while those imported from Thailand are up to VND60 million. Customers have to register and wait as demand is over supply.
As banks have tightened credits for motorbike imports, traders have to borrow foreign currencies at high interest rates from residents or combine with each other to import a shipment.
“I have borrowed foreign currencies from relatives and friends to import the products as the motorbike demand has increased strongly,” said a trader in HCMC’s Phu Nhuan District. He has also joined hands with an enterprise for the same reason.
Lenders usually convert the credits into dong and charge interest of 3% per month, or three times higher than average deposit rates of banks. Each trader has to invest at least US$65,000 for a shipment as it includes 200 to 300 scooters.
The central bank and Ministry of Industry and Trade late last year decided to limit credits for the import of luxury products, including motorbikes and automobiles. The policy aims to reduce the trade deficit and foreign currency tension on the market.
In the country, Air Blade scooters produced by Honda Vietnam cost VND45-47 million each, inclusive of taxes and fees, though the company-suggested Vị trí đặt quảng cáoprice is about VND32 million, while those imported from Thailand are up to VND60 million. Customers have to register and wait as demand is over supply.
As banks have tightened credits for motorbike imports, traders have to borrow foreign currencies at high interest rates from residents or combine with each other to import a shipment.
“I have borrowed foreign currencies from relatives and friends to import the products as the motorbike demand has increased strongly,” said a trader in HCMC’s Phu Nhuan District. He has also joined hands with an enterprise for the same reason.
Lenders usually convert the credits into dong and charge interest of 3% per month, or three times higher than average deposit rates of banks. Each trader has to invest at least US$65,000 for a shipment as it includes 200 to 300 scooters.
The central bank and Ministry of Industry and Trade late last year decided to limit credits for the import of luxury products, including motorbikes and automobiles. The policy aims to reduce the trade deficit and foreign currency tension on the market.
Source: SGT
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