​Vietnam spends $2.1bn importing 94,000 cars in 2017

Car imports declined in both volume and value compared to 2016

Vietnam’s completely built-up (CBU) car imports dropped in both volume and value in 2017 compared to a year earlier, as local importers had anticipated a major tax cut that kicked in at the start of 2018.

The Southeast Asian country spent US$2.154 billion importing 94,000 CBU units – vehicles manufactured and assembled in their country of origin – last year, according to the General Statistics Office.

This presents a 16.8 percent decrease in volume and 9.6 percent drop in value.

December witnessed the largest import volume, with 10,000 CBU units, worth $273 million, shipped to the country.

In the last months of 2017, car importers in Vietnam carefully adjusted their business plans against the January 1, 2018 deadline, when a new decree applying stricter requirements to car importers and a massive cut on import duty both started taking effect.

Decree 116 dictates that businesses obtain a permit for car importation from the Ministry of Industry and Trade to be allowed to operate as a car importer.

In the meantime, several kinds of CBU car imported from ASEAN countries now enjoy a zero percent import duty, compared to the previous 30 percent tariff.

vietnam spends 21bn importing 94000 cars in 2017

Customers are seen at an Audi showroom in Ho Chi Minh City. Photo: Tuoi Tre

ASEAN is short for the Association of Southeast Asian Nations, which is a political and economic organization whose members include Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.

Car importers, however, were in a dilemma as they had to speed up imports before the decree entered into effect to avoid permit paperwork, while at the same time wanting to delay imports to enjoy the zero-percent duty.

In December, many businesses intentionally kept their car imports at Ho Chi Minh City seaports upon shipment instead of completing paperwork to clear customs for them, waiting for the new import duty to take effect.

This ‘strategy’ has upset the city’s customs department, which was under pressure to meet its tax collection target for 2017. The customs department eventually forced businesses to clear customs for cars that were not imported from ASEAN countries to ensure its tax collection.

vietnam spends 21bn importing 94000 cars in 2017

A customs officer checks imported cars at a seaport in Ho Chi Minh City. Photo: Tuoi Tre

As part of the ASEAN Free Trade Agreement (AFT) commitments, a zero percent tax began to be applied to cars shipped from the bloc on January 1, 2018.

Vehicles eligible for the new tax are those with an ASEAN content ratio of 40 percent or more.

In Vietnam, the most popular vehicles falling in this category are pickup trucks, Toyota Fortuner, pickup Honda CR-V, Ford Everest and Toyota Yaris imported from Thailand, Indonesia and Malaysia, according to the Vietnam News Agency.

With import duty cut by 30 percent, people in Vietnam have been anticipating that imported cars will cost less and have therefore delayed their car buying plan until this year.

Like us on Facebook

or

follow us on Twitter

to get the latest news about Vietnam!

Source: TuoitreNews

Related News

Vietnam, Korea Customs sign AEO MRA

Vietnam, Korea Customs sign AEO MRA

VCN- The Director General of the General Department of Vietnam Customs (GDVC), Mr Nguyen Van Tho, and the Commissioner of Korea Customs Service (KCS), Mr Ko Kwang Hyo, signed the Authorized Economic Operator Mutual Recognition Agreement (AEO MRA) on the afternoon of December 24, at the GDVC’s headquarters.
Promoting agricultural exports to the Japanese market

Promoting agricultural exports to the Japanese market

VCN - Japan's high-quality standards have become a driving force for continuous improvement in Vietnamese agricultural products to meet global consumer expectations and build a strong brand for Vietnamese agricultural products on the world map.

Latest News

Nghệ An Province anticipates record FDI amidst economic upswing

Nghệ An Province anticipates record FDI amidst economic upswing

This places the province among the top 10 nationwide in FDI attraction, showcasing its increasing appeal to international investors.
Green farming development needs supportive policies to attract investors

Green farming development needs supportive policies to attract investors

The numbers investing in this sector remains modest, because the supportive mechanisms and policies for the investors are not attractive enough, according to experts.
Vietnamese enterprises adapt to green logistics trend

Vietnamese enterprises adapt to green logistics trend

Principal of the School of Business at the National Economics University, Associate Professor Dr Tạ Văn Lợi, talked to Vietnam News Agency about solutions for domestic enterprises to become more green in terms of logistics.
Paving the way for Vietnamese agricultural products in China

Paving the way for Vietnamese agricultural products in China

VCN - The signing of protocols between the Ministry of Agriculture and Rural Development of Vietnam and the General Administration of Customs of China has created momentum for many domestic agricultural products. In 2025 and the coming years, participating in cross-border e-commerce channels is considered a potential direction for domestic enterprises to directly approach Chinese consumers.

More News

VN seafood export surpass 2024 goal of $10 billion

VN seafood export surpass 2024 goal of $10 billion

Việt Nam’s seafood export in 2024 has surpassed its target of US$10 billion despite many challenges related to the market, logistics and materials, according to the Việt Nam Association of Seafood Exporters and Producers (VASEP).
Exporters urged to actively prepare for trade defence investigation risks when exporting to the UK

Exporters urged to actively prepare for trade defence investigation risks when exporting to the UK

The UKVFTA and the UK’s official participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) from December 15 are creating significant opportunities for Việt Nam to expand exports to the UK. However, the risk of trade defence investigations is always present.
Electronic imports exceed $100 billion

Electronic imports exceed $100 billion

Computers, electronic products and components are the first import group to exceed the US$100 billion mark this year.
Forestry exports set a record of $17.3 billion

Forestry exports set a record of $17.3 billion

Việt Nam’s forestry export turnover is estimated to reach a record of US$17.3 billion in 2024.
Hanoi: Maximum support for affiliating production and sustainable consumption of agricultural products

Hanoi: Maximum support for affiliating production and sustainable consumption of agricultural products

VCN - Hanoi City aims to have clean agriculture by 2030, from land, water to air, and clean the environment, especially rivers. Hanoi must create a difference for agricultural product brands, products must be certified and must build the brand "made in Hanoi".
Việt Nam boosts supporting industries with development programmes

Việt Nam boosts supporting industries with development programmes

Việt Nam’s supporting industries play a crucial role in the development and competitiveness of key sectors, receiving substantial government investment and support.
VN

VN's wood industry sees chances and challenges from US new trade policies

Việt Nam’s wood industry will need to be flexible due to the anticipated new trade policies of US President-elect Donald Trump in the future, according to experts.
Vietnam

Vietnam's fruit, vegetable exports reach new milestone, topping 7 billion USD

Vietnam’s efforts in expanding export markets for its fruits and vegetables in 2024 has paid off as for the first time, the export of these products has brought home 7.2 billion USD, much higher than the figure of 3.3 billion USD two years ago.
Aquatic exports hit 10 billion USD

Aquatic exports hit 10 billion USD

Vietnam's aquatic exports reached 10 billion USD in 2024, driven by shrimp and pangasius, despite challenges related to markets, logistics, and raw materials, the Vietnam Association of Seafood Exporters and Producers (VASEP) said on December 23.
Read More

Your care

Latest Most read
Nghệ An Province anticipates record FDI amidst economic upswing

Nghệ An Province anticipates record FDI amidst economic upswing

This places the province among the top 10 nationwide in FDI attraction, showcasing its increasing appeal to international investors.
Green farming development needs supportive policies to attract investors

Green farming development needs supportive policies to attract investors

The numbers investing in this sector remains modest, because the supportive mechanisms and policies for the investors are not attractive enough, according to experts.
Vietnamese enterprises adapt to green logistics trend

Vietnamese enterprises adapt to green logistics trend

Principal of the School of Business at the National Economics University, Associate Professor Dr Tạ Văn Lợi, talked to Vietnam News Agency about solutions for domestic enterprises to become more green in terms of logistics.
Paving the way for Vietnamese agricultural products in China

Paving the way for Vietnamese agricultural products in China

VCN - The signing of protocols between the Ministry of Agriculture and Rural Development of Vietnam and the General Administration of Customs of China has created momentum for many domestic agricultural products. In 2025 and the coming years, participatin
VN seafood export surpass 2024 goal of $10 billion

VN seafood export surpass 2024 goal of $10 billion

Việt Nam’s seafood export in 2024 has surpassed its target of US$10 billion despite many challenges related to the market, logistics and materials, according to the Việt Nam Association of Seafood Exporters and Producers (VASEP).
Mobile Version