CBU (complete built unit) imports have been flooding the Vietnamese market while domestic factories have cut output, raising concerns among car part manufacturers that they may lose jobs.

CBU (complete built unit) imports from Thailand account for more than 50 percent of total car imports and turnover in the first eight months of the year, according to the General Department of Customs (GDC).

Chinese automobile brands have quietly returned to the Vietnamese market after many years of absence.

The Ministry of Industry and Trade (MOIT) has proposed raising luxury tax on some car models with fewer than nine seats.

Experts think the plan to spend $4.3 billion to develop the automobile industry will be in vain.

Vietnam has increased imports of chicken from the US which have the surprisingly low price of VND18,000 per kilogram.

The countries with developed technologies such as Japan and the US, when seeking places for their long-term investments, consider possible destinations such as Vietnam, Indonesia and India very carefully.

Higher import tariffs proposed by the government are expected to restrict imports of trucks and specialized vehicles from China.

VietNamNet Bridge - While some automobile assemblers have stopped domestic production and shifted to importing products, others have poured more money into production lines in Vietnam.

VietNamNet Bridge - With protectionism pursued by the Trump administration, Vietnam’s exports, especially seafood and steel, to the US will face challenges in the time to come.

Economists are optimistic about foreign investment in Vietnam, both foreign direct investment (FDI) and foreign portfolio investment (FPI), in 2018 and upcoming years. 

The newly inked Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is expected to greatly help its member countries, especially  in the context of the spread of protectionism.

Foreign-invested auto companies in Vietnam are stopping domestic production and shifting to importing cars to sell in the market.

Foreign-invested auto enterprises in Vietnam have canceled orders for imports from Thailand and Indonesia because they still cannot get certificates from agencies of export countries, as required by Decree 116.

Car imports to Vietnam have dropped sharply in anticipation of Decree 116 which sets strict regulations for locally assembled automobile businesses as well as importers.

VietNamNet Bridge - On January 1, 2018, the luxury tax on some car models with small cylinder capacity was reduced and the import tariff on ASEAN sourced cars was cut to zero percent.

Car dealers and buyers are ‘holding their breath’ before January 1, 2018, when car prices are expected to see big fluctuations.

Vietnam will have to cut the tariff on CBU imports from ASEAN from 30 percent to zero percent in 1.5 months, but state management agencies and manufacturers are still arguing about the import tariff on car parts.

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.