Ministry plans to eliminate import duties on auto parts
The tax cut was included in the Government’s revised decree on the schedule for preferential import tariffs, flat taxes, compound tariffs and out-of-quota import tariffs.
The Ministry of Finance said it will develop preferential tax policies for raw materials and auto parts for automobile manufacturing and assembly from now until 2023.
This decree is expected to remove bottlenecks in the development of prioritised industries, including the automobile industry, and promote the strengths of part suppliers to increase the localisation rate (the percentage of parts that are produced locally).
Under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which came into force on December 30, 2018, the import duties on completely built-up cars (CBUs) from CPTPP member countries will gradually fall from 70 percent to zero over the next seven to nine years.
The Europe-Vietnam Free Trade Agreement (EVFTA), which was signed on June 30 this year, includes a similar commitment. It stipulates that the import tax on CBUs from EU countries will gradually decrease to zero percent after nine to 10 years.
The import duty was eliminated for cars from ASEAN countries last year. By 2030, the Vietnamese automobile market will be fully open to major automobile production centres around the world including Japan, Mexico and the EU.
The ministry said Vietnam’s part suppliers are mainly small- and medium-sized enterprises with low production capacity. Among about 1,800 spare part businesses, only about 300 are participating in the production networks of multinational corporations.
Related News
Ministry asked to raise policies to support enterprises
15:30 | 14/03/2023 Import-Export
Ministry assists exporters in optimising foreign distribution channels
18:37 | 23/02/2023 Import-Export
Ministry proposes VAT on fertiliser
20:01 | 11/05/2022 Import-Export
Ministry points out challenges in applying digital technology
16:32 | 29/12/2021 Headlines
Latest News
India as main market for Vietnamese star anise exports
17:58 | 12/05/2024 Import-Export
Domestic auto market shows signs of recovery
17:57 | 12/05/2024 Import-Export
Businesses must fully understand the new EU import control regulations
08:17 | 12/05/2024 Import-Export
Responding to the market, export enterprises are willing to spend more on "green practices"
17:52 | 11/05/2024 Import-Export
More News
Cai Mep port authorised to receive super container ships
17:51 | 11/05/2024 Import-Export
The new race in developing green and smart industrial parks
10:07 | 11/05/2024 Import-Export
What to do to develop Vietnam's creative economy?
10:06 | 11/05/2024 Headlines
Take advantage of opportunities from American "eagles"
14:59 | 10/05/2024 Import-Export
Ho Chi Minh City: Enterprises overcome difficulties, exports lead the country
14:58 | 10/05/2024 Import-Export
Strong recovery seen in industrial production in four months
14:52 | 10/05/2024 Import-Export
"The key" to promote growth for businesses
10:23 | 10/05/2024 Import-Export
An Giang Province to turn textile-garment, footwear into key export items
14:48 | 09/05/2024 Import-Export
“Hopeful stars" for businesses on the new journey
09:51 | 09/05/2024 Import-Export
Your care
India as main market for Vietnamese star anise exports
17:58 | 12/05/2024 Import-Export
Domestic auto market shows signs of recovery
17:57 | 12/05/2024 Import-Export
Businesses must fully understand the new EU import control regulations
08:17 | 12/05/2024 Import-Export
Responding to the market, export enterprises are willing to spend more on "green practices"
17:52 | 11/05/2024 Import-Export
Cai Mep port authorised to receive super container ships
17:51 | 11/05/2024 Import-Export