Car prices expected to drop in August

More people could afford imported cars from the EU when the EU-Vietnam Free Trade Agreement (EVFTA) takes effect from August 1.

 

Many goods imported from the EU into Vietnam will enjoy zero percent tax according to the tax reduction roadmap over the next seven to 10 years. Imported cars and spare parts are the most anticipated items. Currently, imported cars from the EU to Vietnam face taxes of 70%. The most expensive are cars imported from Germany, France and Italy.

According to commitments, vehicles with engines above 2,500 cc would enjoy a zero tax after nine years while those of less than 2,500 cc would have a zero tax after 10 years.

The Ministry of Finance's Department of International Co-operation said the ministry had built a tax cut plan for cars and other items to submit to the government. It would include regulations, timeframe and process and directives for ministries, departments and local authorities.

If the government cut tax by 7-9% each year, the prices of imported cars from the EU would significantly fall. More people would be able to afford imported cars. In another case, if the government cut tax by 15-30% a year in just two or three years, customers could see a huge price drop by VND300m or more in August if the market becomes more diverse and no trade protection measures are applied.

The majority of imported cars into Vietnam are Audi, Mercedes-Benz, BMW and Volkswagen. Each car costs about VND2bn.

According to the Vietnam 2035 report by the World Bank in Vietnam, if the growth rate of 7% is maintained in the next 10 years, income per capita in 2030 may reach USD10,400. More people are able to afford cars thanks to the rising middle class and as income disparity between urban and rural areas is reduced.

The Ministry of Industry and Trade predicts greater car usage in Vietnam in the coming time when the GDP per capita surpasses USD3,000 and there are over 50 cars per 1,000 people. In 2025, demand will be 800 to 900 cars a year and the consumption rate in the next five years will be 10.5%.

Both domestically-assembled and imported car dealers will have more opportunities with the new dynamic market. Dtinews

Enjoying incentives, prices of domestically-produced cars to decline

Enjoying incentives, prices of domestically-produced cars to decline

The Government’s decision to offer a zero-import tax rate on automobile components opens significant opportunities for the local industry to lower prices, enhance competitiveness and promote consumption.

Car prices predicted to fall until Tet Holiday

Car prices predicted to fall until Tet Holiday

Car prices in Vietnam are predicted to continue falling with many discount programmes due to large inventory and slow sales.

 
 

Other News

.
Flower farmers do not dare grow large quantities for Tet amid Covid uncertainty
Flower farmers do not dare grow large quantities for Tet amid Covid uncertainty
BUSINESSicon  19/11/2021 

Many flower and bonsai farmers in HCM City and the Cuu Long (Mekong) Delta have reduced production for Tet (Lunar New Year) which falls early next year since they are worried the COVID-19 pandemic will affect demand.

Global energy crisis: another concern for Vietnam's economy
Global energy crisis: another concern for Vietnam's economy
FEATUREicon  19/11/2021 

Disrupted coal mining in Ordis in Inner Mongolia, the most important coal mining hub in the world, is posing huge risks that could stifle global growth.

Too many traceability apps confuse farm-produce buyers
Too many traceability apps confuse farm-produce buyers
FEATUREicon  19/11/2021 

The farm produce traceability system in Vietnam still doesn’t match GS1 standards (the most widely used system of standards in the world), and, as such, the existing traceability apps are just for internal use.

More businesses seek black credit as cash flow plummets
More businesses seek black credit as cash flow plummets
FEATUREicon  19/11/2021 

Seventy-one percent of businesses anticipate revenue decreases in 2021, higher than the 65 percent figure in 2020, according to a survey.

Overspend in the works for reboot of national economy
Overspend in the works for reboot of national economy
BUSINESSicon  19/11/2021 

Vietnam may not be able to increase its budget deficit next year in order to ensure state budget spending, with the economy still sabotaged and business revenues still dented.

Captivating incentives target FDI from Europe
Captivating incentives target FDI from Europe
BUSINESSicon  18/11/2021 

Vietnam will continue considering foreign investment one of its important drivers for socioeconomic development over the next four years, with its ambitious plan to attract more high-quality funding. 

VN to strengthen financial foundation in the next ten years
VN to strengthen financial foundation in the next ten years
BUSINESSicon  19/11/2021 

Vietnam's top priority for 2021-30 is to build a financial foundation for the country's sustainable development, said policymakers and experts during a conference to discuss finance strategy for the 2021-30 period.

Pandemic makes 85 percent of Vietnamese consumers more likely to use digital banking in future
Pandemic makes 85 percent of Vietnamese consumers more likely to use digital banking in future
BUSINESSicon  18/11/2021 

Around 85 percent of Vietnamese banking consumers are more likely to use online and digital banking services compared to 18 months ago, according to a new report from SaaS cloud banking platform Mambu.

Food shopping trends change due to social distancing
Food shopping trends change due to social distancing
BUSINESSicon  18/11/2021 

The way people buy food in HCM City has changed after a period of social distancing amid the COVID-19 pandemic, with more food products bought online, according to online sellers.

The cost of reopening the economy
The cost of reopening the economy
FEATUREicon  18/11/2021 

Nearly two months have passed since Ho Chi Minh City and 18 southern provinces have lifted lockdown measures and set up the "new normal", with the operations of people and enterprises gradually resuming.

More gyms close as membership dwindles
More gyms close as membership dwindles
FEATUREicon  18/11/2021 

More and more gyms have shut down or have been transferred to others, sometimes for free.

Coffee, vegetable industries agree on codes of conduct to encourage sustainability
Coffee, vegetable industries agree on codes of conduct to encourage sustainability
BUSINESSicon  17/11/2021 

As many as 42 enterprises from the coffee and fruit-vegetable industries have signed a pledge to show their commitment to support and implement the codes of conduct (CoCs) 

Pandemic will have long-lasting impact on business operations in Vietnam
Pandemic will have long-lasting impact on business operations in Vietnam
BUSINESSicon  17/11/2021 

Many factories, including about 200 contracted factories that make sportwear for Nike Corporation, resumed production in Vietnam earlier this month. 

Hoa Binh: attractive destination for investors
Hoa Binh: attractive destination for investors
BUSINESSicon  04/11/2021 

In an effort to attract investment, especially from the start-up community and young entrepreneurs, the authorities of Hoa Binh province have issued special incentive policies.

VIETNAM BUSINESS NEWS NOVEMBER 18
VIETNAM BUSINESS NEWS NOVEMBER 18
BUSINESSicon  18/11/2021 

Fee reductions extended until June 2022

Vietnam to attract more investment in seaport development
Vietnam to attract more investment in seaport development
BUSINESSicon  17/11/2021 

Vietnam will need about 313 trillion VND (13.7 billion USD) to develop a modern seaport system between now and 2030, and the funding will mostly come from non-budget sources.

VIETNAM BUSINESS NEWS NOVEMBER 17
VIETNAM BUSINESS NEWS NOVEMBER 17
BUSINESSicon  17/11/2021 

Shares retreat on selling pressure, liquidity remains high

Vietnam Airlines officially receives FAA permit to run direct flights to US
Vietnam Airlines officially receives FAA permit to run direct flights to US
BUSINESSicon  16/11/2021 

National flag carrier Vietnam Airlines on November 16 officially received a permit from the US Federal Aviation Administration (FAA) to operate non-stop commercial flight service between Vietnam and the US.

Vietnam, Israel look toward bilateral FTA next year
Vietnam, Israel look toward bilateral FTA next year
BUSINESSicon  17/11/2021 

Vietnamese Minister of Industry and Trade Nguyen Hong Dien has hailed Israel as a promising market of Vietnam in West Asia.

Economic recovery: businesses can find their own way with new policies
Economic recovery: businesses can find their own way with new policies
BUSINESSicon  17/11/2021 

Economic expert Pham Chi Lan said that financial solutions to support pandemic-affected businesses this year have not yet learned from the irrationalities of 2020. 

 
 
 
Leave your comment on an article

OR QUICK LOGIN