Mercedes distributor Haxaco reported a 92% year-on-year fall in pre-tax profits in the first quarter to VND5.6 billion ($238,750).
Amid an industry-wide decline in sales, Haxaco’s revenues plummeted by 40% to VND992 billion.
High-interest rates and the difficult economic situation caused sales of the luxury brand to drop, the company said in a statement.
Its chairman, Do Tien Dung, said last week that in some months during the first quarter only a few cars were sold, and most of the income came from services.
The company expects the difficult situation to persist until the end of the year.
Yet it targets profits of VND310 billion for the year, the same as the record sum achieved last year, with Dung saying he does not want his employees to give up because the market situation is difficult.