Auto imports experience year-end season surge
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Up to 13,000 vehicles were imported last month, almost three times the number in October 2017. October also saw the highest number of completely built units (CBUs) imported so far this year, according to Vietnam Customs. However, the total volume of imported cars in the first 10 months of this year decreased over the same period last year, because of a decree that took effect this year, setting tough conditions for car imports.
As of the end of October, the total number of imported CBUs is estimated at over 53,000 units, down 31 percent from the 77,000 units recorded in the same period last year.
The number of imported vehicles only started rising since August this year, after a slump that lasted more than six months.
Vietnam imported 12,380 CBUs worth $329 million in the first half of this year, down 75.5 percent in volume and 68.3 percent in value over the same period last year, according to Vietnam Customs.
Until now, Thailand and Indonesia have accounted for the main volume of imported CBUs. Most cars sold in Vietnam are foreign brands assembled in the country from kits.
But a series of free trade agreements have reduced import duties and are opening up the market. A 30 percent import tax on cars from other Association of Southeast Asian Nations (ASEAN) countries was scrapped this year.
Besides Thailand and Indonesia, Vietnam has imported cars from China, Germany, Slovakia, Hungary, Spain, and few other countries this year.
Questions & Answers
Q.What is the reason for the overall decrease in imported car volumes this year compared to last year?
What is the reason for the overall decrease in imported car volumes this year compared to last year?
The total volume of imported cars decreased over the same period last year due to a decree that took effect this year. This decree set tough conditions for car imports, impacting overall numbers despite recent surges.
Q.Which countries have been the primary sources of imported cars for Vietnam?
Which countries have been the primary sources of imported cars for Vietnam?
Thailand and Indonesia have accounted for the main volume of imported completely built units until now. Vietnam has also imported cars from countries like China, Germany, and Slovakia this year.
Q.When did the number of imported vehicles begin to increase this year?
When did the number of imported vehicles begin to increase this year?
The number of imported vehicles only started rising since August this year. This followed a slump that had lasted for more than six months, indicating a recent upturn in imports.
Q.How much was the import tax on cars from ASEAN countries reduced?
How much was the import tax on cars from ASEAN countries reduced?
A 30 percent import tax on cars from other Association of Southeast Asian Nations (ASEAN) countries was scrapped this year. This reduction is part of free trade agreements opening up the market.