Cars are considered as means of transport for the travel and work needs of individuals and families. Despite being a popular vehicle in the world, cars are still not for the majority of Vietnamese people, because the price is still different from income. So far, KIA Morning from Korea is the cheapest car model in Vietnam. The listed price of the lowest KIA models is about 300,000,000 VND.
That number is still very large when compared to the per capita income of Vietnamese people of only VND 5,700,000/month, according to the General Statistics Office by the end of 2021. That is, for a person with a standard of living. On average, in Vietnam, it takes 53 months (more than 4 years) without eating or spending to have enough money to buy a car.
According to the 2020 Population Living Standards Survey, the average household expenditure nationwide is 2,890,000 VND/person/month. Thus, on average, each Vietnamese person saves 2,810,000 VND/month. With that savings, it takes Vietnamese people more than 106 months of labor, equivalent to nearly 9 years, to be able to buy a car of the cheapest type.
How would this number compare to other countries like the US? According to the OECD’s 2020 average salary statistics, Americans have an average income of 69,392 USD/year, equivalent to 5,782 USD/month. Figures from Kelley Blue Book, a California-based car valuation company, show that the average cost of buying a new car in the US is about $38,723. Thus, without eating or spending, Americans only need about 6 months of labor to be able to own a car.
Expatistan, one of the largest average spending databases in the world, shows that each American spends an average of $2,961 per month. Thus, with a savings of $2,821 per month, it takes Americans nearly 14 months to buy a car. Therefore, the number of 9 years for Vietnamese people is a significant difference.
However, even for Vietnamese people who have a higher than average monthly income and have enough money to accumulate to buy a car, the questions have not stopped. There are more expenses incurred when using a car than a motorbike. Gasoline, parking fees, tolls, maintenance, repair, … are all costs that users of four-wheeled vehicles have to pay.
Basically, the fees for “raising” the car are divided into two main groups, including fixed use costs and non-fixed usage costs.
Fixed costs: These are the inevitable fees that users need to pay periodically according to the time specified by the State or the competent authority.
| Types of fees | Cost |
|---|---|
| Compulsory premium | According to the compulsory insurance fee schedule issued by the Ministry of Finance, vehicles with less than 6 seats have to pay a fee of 437,000 VND/year and this fee will be 794,000 VND/year for cars with 6-11 seats. |
| Road maintenance fee | For passenger vehicles with less than 10 seats with individual registration, the road maintenance fee is 130,000 VND/month, equivalent to 1,560,000 VND/year. |
| Registration fee | Registration fee is currently 100,000 VND/time/vehicle for passenger cars with 10 seats or less. According to Circular No. 120/2021 of the Ministry of Finance stipulating, civil cars registered in the period from January 1 to June 30, 2022 only have to pay a fee of 50,000 VND/car. |
| Parking costs | About 900,000 – 2,000,000 VND/month, depending on the facilities of the parking lot. In case the house has a parking space, users will save this fee. |
Non-fixed costs: Fluctuating depending on the needs of use as well as different unforeseen circumstances.
| Types of fees | Cost |
|---|---|
| Fuel costs | Ranging from 1,600,000 – 4,000,000 VND/month with the current gas price if the distance traveled is about 500 – 1,500 km/month |
| Fees for passing BOT . stations | About 400,000 – 500,000 VND/month |
| Parking fee outside | About 500,000 VND/month. |
| Periodic maintenance fee | About 3,000,000/year in case the car is not seriously damaged. |
Thus, on average, the cost of raising a car is in the range of 3,700,000 – 7,000,000 VND/month.
at Blogtuan.info – Source: autopro.com.vn – Read the original article here
