Thailand has continued to hold a large share of Vietnam's car imports according to initial statistics of the General Department of Vietnam Customs.
After 25 years of development, the automobile industry has failed to reach its localization ratio goal, while cars in Vietnam are more expensive than other regional countries.
Used car dealers do not want to lower prices for fear of losses, but they are offering many preferences to attract buyers.
New sale promotions on automobiles are expected to be run after the 50 percent vehicle registration tax reduction policy expires.
From 2021, when the preferential registration tax policy is removed, domestically made cars will be at a disadvantage compared with imports.
The government has affirmed its policy to encourage the development of the automobile industry. However, the ‘encouragement’ is not attractive in the eyes of manufacturers.
Vietnam now has a new opportunity to develop its automobile industry. If the chance is missed, the country will become an automobile import market.
Some 3,200 Mercedes-Benz cars in Vietnam have been found to have problems with Takata airbags, according to the Vietnam Register.
Developing an automobile industry is a part of the strategy to turn Vietnam into a modern and industrialized country by 2030. More preferences for the industry will be offered in the time to come.
Some foreign automobile manufacturers and car part producers are considering setting up manufacturing facilities in Vietnam. Will Vietnam take advantage of the opportunity to become a production base in the region?
The car market has recovered recently, though sales are not as good as the same period last year. The demand for both new and used cars is increasing, and the prices are escalating.
To own a super luxury car, one has to pay tens of billions of dong in taxes and fees, which are 3-4 times higher than imported car prices.
A number of large manufacturers slashed car prices in early October, signaling a fierce race in the Vietnamese auto market.
For many people, the news that automobile manufacturers have paid high amounts of tax to the state in the context of slow auto sales indicates that cars are being sold at sky-high prices in Vietnam.
The Vietnamese automobile market is full of potential with predicted sales of up to 1.8 million products a year, but it still remains risky to invest in the industry.
The decision on allowing car manufacturers to extend the luxury tax payment deadline will help them maintain cash flow amid the Covid-19 pandemic and stimulate demand.
The import tariff on European car imports will be decreasing gradually by 7 percent per annum. It will take at least five years to see considerable price decreases.