Update news car price
VietNamNet Bridge - While car imports are likely to be barred from Vietnam by technical barriers, domestic automobile manufacturers have been given preferential treatment.
Analysts believe that new car brands will enter the Vietnamese market after 2018 when import tariffs fall, providing products at low prices and targeting middle-income earners.
The truck market is struggling as the demand for Chinese products has dropped dramatically, while car buyers have canceled their purchase plans and will not return until 2018 when import tariff cuts take effect, making vehicles cheaper.
VietNamNet Bridge - For most Vietnamese consumers, a house and car are two of the most valuable assets.
The Ministry of Industry and Trade has admitted that the plan to develop an automobile industry of Vietnam has failed, but it still insists on protecting domestic assembling enterprises which work for foreign invested enterprises.
Car prices in Vietnam are nearly two times higher than in other countries in the region such as Thailand and Indonesia, and much higher than in countries with developed automobile industries such as the US and Japan.
VietNamNet Bridge - Though appreciating Japanese support to Vietnam’s industries, economists say that Japanese automobile manufacturers’ claims for investment incentives are unreasonable.
VietNamNet Bridge - Japanese automobile manufacturers have discussed the possibility of relocating their factories to regional countries because of Vietnam’s weak supporting industries.
VietNamNet Bridge - Despite tariff cuts and low import prices, Vietnamese still have to pay high prices to buy cars because of high taxes and fees.
VietNamNet Bridge - While Indian cars are cheap with the average import price of VND84 million, French autos are the most expensive with the average import price of VND1.3 billion.
VietNamNet Bridge – The automobile and car part manufacturing has the transfer pricing rate of 51 percent, the third highest to finance & insurance and textile & garment.