Automobile sales in Vietnam posted a month-on-month increase of 20% and a year-on-year surge of 88% in July, the Vietnam Automobile Manufacturers’ Association (VAMA) reported on August 11.
Nine provinces have the lowest number of car buyers in the country, with fewer than 1,000 cars bought in each area.
The car part shortage crisis in the world has affected the Vietnamese market as car buyers have been told to wait for deliveries.
Vietnam Association of Mechanical Industry (VAMI) believes the method of determining the localization ratio in cars is not consistent with the Law on Promulgation of Legal Documents and is no longer suitable to the new circumstances.
Hanoi continued to lead cities and provinces in the number of cars bought in 2021, followed by HCM City and Hai Phong. Nghe An province was among the top four car buyers.
As many as 299,800 cars were domestically manufactured and assembled in Vietnam in 2021, a 9.1 percent increase compared with 2020, according to the General Statistics Office (GSO).
Deputy Prime Minister Le Minh Khai has recently signed Decree No. 10/2022 on regulating registration fees. The decree will take effect from March 1 this year.
The Ministry of Finance (MoF) has proposed rescheduling excise tax payments for local automobile manufactures and assemblers.
Deputy Minister of Industry and Trade Dang Hoang An and his Russian counterpart Alexey Gruzdev had an online working session on November 3.
The request for a registration tax cut, if approved, will mostly benefit luxury car buyers.
The Vehicles Importers Vietnam Association (VIVA) has submitted a written proposal to the Ministry of Finance regarding a 50% cut in car registration fees.
After 30 years of development, Vietnam’s enterprises can only make 287 car parts, which are mostly simple products. The industry uses a large amount of labor and has low added value and high production costs.
The prices of domestically assembled automobiles are expected to go down once the luxury tax policy is amended. Strategic small-capacity and fuel saving models will be given priority.
Car sales have dropped sharply because of the fourth Covid-19 outbreak, prompting dealers to offer big discounts.