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The deceleration of the overall market has Links of London Charms BMI to revise downwards our estimate for 2010 to a decline of 4%, with the MPV/SUV segment expected to drag down the whole passenger vehicle segment by 10%. Although we expect sales to pick up in 2011, growth will still be marginal, particularly in the passenger segment. Despite the slowdown in sales, carmaker's still see Vietnam as a target for growth. Malaysian Tan Chong Motor is the latest company from an emerging market to expand globally, a trend that BMI expects will be a feature of the auto sector Links of London Jumbo Charm our forecast period. The company's wholly owned subsidiary, ETCM, is planning to acquire a 74% stake in Nissan Vietnam from Danish Kjaer Group, and is negotiating a joint venture (JV) with Nissan regarding the business. Tan Chong says this completes its Indochina strategy in coverage terms. Tan Chong believes a JV with Nissan with respect to expanding its Vietnam business would target 'a key ASEAN emerging market'. Four of the top 10 locally producing carmakers posted positive growth in the first nine months of 2010, although the competitive landscape remained largely the same. Toyota retained its lead with growth of 11%, down slightly from the 34% growth of Q110 and 29% of Links of London J Charm. Visuco again achieved the best growth of the top 10 manufacturers with a 43% rise in sales, though this was down from 72% in H110. Mekong, representing Fiat, Ssangyong and PMC, registered the worst sales with a 46% decline. In the longer term, BMI would expect to see Nissan making up ground on the back of its investment in the local industry. Fluctuating tariffs Links of London hot Pink Heart Charm still a factor in Vietnam's 12th position out of 14 markets in BMI's Business Environment Ratings for the autos sector in Asia Pacific. The highest score is for market risk, which stands at 85.0. Its country risk score has also risen from 49.8 to 51.5, taking its total score for risks to realisation of returns up to 68.2. Vietnam is still a country we would expect to see climb the ratings in the future, particularly if its vehicle tariff policy becomes more consistent.