Vietnam's car import value continues skyrocketing

This year's trade deficit for the car industry is expected to reach a record of more than USD3.4 billion and the figure would continue to increase in the following years due to strong domestic demand.

Vietnam's car import value continues skyrocketing

This year's trade deficit for the car industry is expected to reach a record of more than USD3.4 billion

According to the Ministry of Industry and Trade, Vietnam imported 75,438 cars worth a total USD1.68 billion in the first half of this year, up 513% and 413.4% respectively.

ASEAN-imported cars account for up to 88.8% of the country’s imported car number since January 1, 2018 when zero import tariffs applied on ASEAN-imported cars took effect.

Meanwhile, the import of cars from South Korea, India and Japan has sharply fallen as less Mazda and Hyundai cars were imported in Vietnam since Thanh Cong and Truong Hai auto firms have partnered to boost locally-assembled cars of these brands since late 2017.

The Ministry of Industry and Trade reported that cars imported from China have critically dropped due to the fall in truck demand in the local market.

According to the ministry, more trucks are locally produced, which is the main reason for the decline in Chinese-imported cars. Higher registration fees imposed on trucks has partially contributed to the fall.

 

The ministry has forecasted that car import value would be USD3.4 billion this year and the figure would be higher in the coming years. This not only seriously affects domestic automobile production but also affects the trade balance.

To improve the situation, the ministry has proposed solutions to support domestic car manufacturers, including not applying special consumption tax for vehicles which are locally-produced, as part of efforts to reduce the price of cars.

The ministry also expected the government to adjust import taxes on the principle that the import tax rate on components, spare parts and raw materials must be lower than the import tax rate on completely built-up cars, or at floor level according to international commitments in each period.

The Ministry of Industry and Trade will suggest building a credit package of VND100 trillion (USD4.4 billion USD) for developing the support industry for industrial sectors, especially automobile production.

VNS/Dtinews

 
 

Other News

.
Coronavirus: Moguls and lobbyists get millions in government aid
Coronavirus: Moguls and lobbyists get millions in government aid
BUSINESSicon  08/07/2020 

Kanye West's apparel brand, Jared Kushner's family and Donald Trump's lawyer were among the recipients.

Hanoi emphasising its investment advantages
Hanoi emphasising its investment advantages
BUSINESSicon  08/07/2020 

While Hanoi is making further improvements to call for fresh investment in development of industrial zones to pick up a new possible wave of investment shifts, the problem of how to efficiently absorb the capital must be taken into consideration.

Bank accounts of local advertisers to be drained for Facebook and Google tax arrears
Bank accounts of local advertisers to be drained for Facebook and Google tax arrears
BUSINESSicon  08/07/2020 

Dozens of thousands of local advertisers of Facebook and Google are on edge since the Law on Tax Administration has come into force on July 1.

Fashion rivals continuing to suffer in coronavirus fallout
Fashion rivals continuing to suffer in coronavirus fallout
BUSINESSicon  08/07/2020 

Thousands of dismissed labourers at suppliers in Vietnam has exacerbated the floundering performance of major garment and footwear brands across the globe like Adidas, Nike, and Zara.

Vietnam to increase rice exports to EU under EVFTA
Vietnam to increase rice exports to EU under EVFTA
BUSINESSicon  08/07/2020 

Rice quotas for Vietnam under the EVFTA are expected to push Vietnam’s rice exports up from the second half of this year, according to the Ministry of Industry and Trade (MoIT).

Car sales in Vietnam rocket after registration fee cut
Car sales in Vietnam rocket after registration fee cut
BUSINESSicon  08/07/2020 

After the Government’s move to lower car registration fees by half took effect more than a week ago, the domestic car market has picked up.

State budget revenue reaches seven-year record low
State budget revenue reaches seven-year record low
BUSINESSicon  08/07/2020 

The total State budget revenue was estimated to be at VND668,700 billion, equaling 44.2% of the anticipated amount by the end of June, marking a 10.5% drop over the same period last year and the lowest levels since 2013.

EuroCham stresses importance of stimulus packages in Vietnam’s post-pandemic recovery
EuroCham stresses importance of stimulus packages in Vietnam’s post-pandemic recovery
BUSINESSicon  08/07/2020 

State financial support for companies hit hard by the Covid-19 pandemic, regardless of the level they are yet, and subject to the Government’s consideration in terms of budget range and macroeconomic stability, 

Private sector involvement proposed in Chu Lai airport project
Private sector involvement proposed in Chu Lai airport project
BUSINESSicon  07/07/2020 

The authority of Quang Nam Province has proposed that private investors be allowed to participate in the construction, management and operation of Chu Lai airport, similar to the investment model adopted for Van Don airport in Quang Ninh Province.

Fitch Ratings says Vietnam outperforms among Asia’s frontier sovereigns
Fitch Ratings says Vietnam outperforms among Asia’s frontier sovereigns
BUSINESSicon  07/07/2020 

According to Fitch Ratings, Vietnam is positioned to stand out among Asia’s frontier and emerging markets this year as a result of its economic resilience and success in bringing the novel coronavirus pandemic under control.

Vietnam’s bond market posts highest growth in emerging East Asia: ADB
Vietnam’s bond market posts highest growth in emerging East Asia: ADB
BUSINESSicon  07/07/2020 

The local currency (LCY) bond market in Vietnam posted the highest growth in the emerging East Asia region, as authorities took fiscal and monetary policy actions to mitigate the economic fallout from the coronavirus pandemic.

China is largest plywood investor in Vietnam
China is largest plywood investor in Vietnam
BUSINESSicon  07/07/2020 

China has invested in 29 plywood projects worth over US$150 million in Vietnam, becoming the country’s largest plywood investor, according to Ngo Sy Hoai, vice chairman of the Vietnam Timber and Forest Products Association.

Customs authority discovers multiple cases of origin fraud
Customs authority discovers multiple cases of origin fraud
BUSINESSicon  07/07/2020 

Country of origin fraud cases, wherein Chinese products bear Made-in-Vietnam labels, are on the rise, with Vietnam’s customs authority recently inspecting 76 cases

Thai firm buys two wind power farms in Vietnam
Thai firm buys two wind power farms in Vietnam
BUSINESSicon  07/07/2020 

The move aims to take advantage of low interest rates to build projects with a quick return on investment.

FIEs displeased with government demand to license internal websites
FIEs displeased with government demand to license internal websites
BUSINESSicon  07/07/2020 

The new regulations of the MIC may affect the policies and assets of private businesses and foreign-invested enterprises in Vietnam.

Amended law alters funding landscape
Amended law alters funding landscape
BUSINESSicon  07/07/2020 

The Vietnamese National Assembly has adopted the new Law on Investment, with new rules in favour of foreign investment, including from the US, which is expected to surge in Vietnam in the time to come.

New investment wave starts despite COVID-19
New investment wave starts despite COVID-19
BUSINESSicon  07/07/2020 

The new wave of foreign investment triggered by COVID-19 and US-China trade tensions is becoming more visible as outstanding overseas ventures are expanded.

Stronger money policies might be considered to aid economic growth: SBV
Stronger money policies might be considered to aid economic growth: SBV
BUSINESSicon  07/07/2020 

The State Bank of Vietnam could increase credit growth limits for credit institutions this year or even launch stronger monetary policies to aid the country’s post-pandemic growth, Governor Le Minh Hung has said.

Guiding decrees needed to fight with transfer pricing in Vietnam
Guiding decrees needed to fight with transfer pricing in Vietnam
BUSINESSicon  07/07/2020 

Anti-transfer pricing measures were included in the Law on Tax Administration for the first time, but a guiding decree has not yet been written. Experts said this could mean the rules are less effective.

VN corporate bond market to boom in second half
VN corporate bond market to boom in second half
BUSINESSicon  07/07/2020 

Companies are looking to raise debts from bond issuance before the amended Law on Securities takes effect next January.

 
 
 
Leave your comment on an article

OR QUICK LOGIN