First Vietnam’s duty-free cars arrive from Thailand
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Over 2,000 Honda cars from Thailand—the first batches of cars to enjoy zero per cent import duty under the ASEAN Free Trade Agreement (AFTA)—have been imported to Việt Nam.
Under the AFTA commitments, a zero per cent tax is applicable to cars imported from the bloc, with a localisation rate of 40 per cent or more in the country of origin, starting January 1 this year.
The current batch has Jazz, Accord, CR-V and Civic models.
A representative of Honda Vietnam said that to import the autos to Việt Nam, the firm had completed procedures to meet the requirements of Việt Nam’s Decree 116 on the conditions for production, assembly, import, business of warranty service, car maintenance and particularly the Vehicle Type Approval certificate granted by the Thailand Department of Land Transport.
A consulting staff member at Honda’s Mỹ Đình agent said that the new vehicles would be rolled out to the market in May or early June, as it will take one or two months to complete checks on emission, quality and technical safety at ports.
“The price of each car is expected to fall by more than VNĐ200 million. This will be a turning point in the Vietnamese automobile market,” said the staff member.
Earlier, the insiders calculated that with the zero per cent import tax, the price of imported cars from ASEAN countries to Việt Nam would fall by 20-25 per cent.
Toyota Motor Vietnam and Ford Việt Nam are completing procedures to meet the requirements of the Decree 116 to import cars which are favourites in Việt Nam, such as the Ford Explorer, Everest, Ranger, Toyota Fortuner and Yaris.
Questions & Answers
Q.Which specific car models have been imported under the new zero per cent import duty?
Which specific car models have been imported under the new zero per cent import duty?
The initial imported batch includes Honda Jazz, Accord, CR-V, and Civic models. These cars are the first to benefit from the zero per cent import duty under the ASEAN Free Trade Agreement.
Q.What is the expected timeline for these duty-free cars to become available for sale to customers?
What is the expected timeline for these duty-free cars to become available for sale to customers?
The new vehicles are expected to be available in May or early June. This timeframe accounts for the one or two months needed to complete checks on emissions, quality, and technical safety at the ports.
Q.What conditions must imported cars meet to qualify for the zero per cent import tax under AFTA?
What conditions must imported cars meet to qualify for the zero per cent import tax under AFTA?
For cars to qualify for the zero per cent tax, they must be imported from an ASEAN bloc country and have a localisation rate of 40 per cent or more in their country of origin.
Q.Which other car manufacturers are preparing to import vehicles under the new duty-free conditions?
Which other car manufacturers are preparing to import vehicles under the new duty-free conditions?
Toyota Motor Vietnam and Ford Việt Nam are currently completing the necessary procedures. They intend to import popular models like the Ford Explorer, Everest, Ranger, Toyota Fortuner, and Yaris.
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