Vietnam July car sales soar as demand recovers

HANOI, Aug 11 (Reuters) - Car sales in Vietnam in July jumped 26 percent from a year ago to 10,839 vehicles as demand strengthened on the back of improved prospects for economic growth, car producers said.

Sales of passenger cars jumped 45 percent, the strongest growth among the different segments, the Vietnam Automobile Manufacturers Association said in its monthly report on Tuesday.

Vietnam's economic growth is expected to regain its momentum with expansion next year seen at up to 7 percent, from 5-5.5 percent this year, thanks to an array of economic stimulus measures rolled out by the government, including cheap loans and tax breaks, the government has said.

Japan's Toyota Motor Corp (7203.T) held on to the top position, with its July sales up 28.4 percent to 2,786 vehicles.

Sales by Ford Motor Co (F.N) rose 5.3 percent to 582 units.

Mitsubishi Motors Corp (7211.T), Malaysia's Proton (PROT.KL), Suzuki Motor Corp (7269.T) and Nissho Iwai, part of Sojitz Holdings Corp (2768.T), are among the car makers with assembly plants in Vietnam.

In June, Nissan Vietnam Co Ltd, part-owned by Japan's Nissan Motor Co (7201.T), said it would start production in Vietnam and market the first locally assembled vehicle by 2010. (Reporting by Nguyen Nhat Lam; Editing by Anshuman Daga)