The government’s strong measures to restrict personal car usage have bothered industry insiders.

Japan-backed Nissan Vietnam Company Limited general director Choo Hong Chow said if the Ministry of Transport’s proposal to impose road travel fees on motorbike and especially car users got the government’s green-light after registration fees and number plates hiked sharply from January 1, 2012 in Hanoi and Ho Chi Minh City would significantly burden consumers.

“Fee impositions are to generate income sources for infrastructure development. However, experiences show that this is often the next step after good infrastructure is in place,” he said.

A representative from another car firm said they faced difficulties in setting 2012’s development objectives on the back of recent policy changes which aims at putting limits to personal car usage.

“Policy changes relevant to car industry are often unpredictable to us,” said the representative.

Sales director Do Xuan Quan at Nissan Ha Dong car dealer said the recent move had slowed down consumption in Hanoi.

“In some past years, banks often resorted to our car dealers to help them increase lending. Things are now reversed,” said Quan, adding that current lending rates of around 20 per cent for car purchases remain comparatively high against consumers’ tight budgets.

To partly ease consumer burdens some car firms have rolled out 5 per cent registration fee subsidy packages applicable in January, 2012. Besides, corporate customers having branches in different localities were suggested ways to lower registration fees.

Members of Vietnam Automobile Manufacturers’ Association sold out 110,938 cars in 2011 which were just 1 per cent lower than in 2010. Despite a slight decrease, passenger cars saw a phenomenal 22.1 per cent hike in sales figure reaching 40,858 units. Cross-over utility vehicles and multi-purpose utility vehicles plunged 6 per cent with 22,956 units being sold out.