Fashion
For many Vietnamese, Indian cars prove to be the best choice. The products are described as ‘unprecedentedly low’ with the import price of VND84 million, CIF, not including tax.
A GDC report shows that in January 2017, Vietnam imported 5,425 cars, worth $97 million, an increase of 120.8 percent in quantity and 92 percent in value compared with the same period last year.
The report showed the sharp increase of 233 percent in imports form ASEAN with 3,408 cars imported, accounting for 62.8 percent of less-than-nine-seat imports, which were mostly from either Thailand or Indonesia. These included 1,585 cars from Thailand, worth $31 million, an increase of 55 percent in quantity and 209 percent in value.
The number of cars from Indonesia increased unexpectedly to 1,823, worth $35 million. Only one car came from the market last year, worth $10,000.
From January 1, 2017, the tariff on CBU less-than-nine-seat cars from ASEAN was cut from 40 percent to 30 percent.
A car dealer said the import volume increased sharply because domestic automobile manufacturers have stopped making some car models in Vietnam, such as Fortuner and Civic, but import them from ASEAN to sell domestically.
The public is more concerned with the appearance of a new source of supply – India. 1,006 cars from India docked at Vietnam’s ports in January, with the average price of $3,708, or VND84 million only. However, Indian imports cannot enjoy preferential tariffs like products from ASEAN.
In mid-2016, the average import price was VND160 million. The figure decreased to VND100 million in late 2016 and then to VND84 million in January 2017.
Contrary to all predictions, the most expensive imports are the ones from France, not from Germany or the UK, which produce many luxury brands.
Only six CBU cars from France were imported to Vietnam in January 2017, worth $342,000, which means the average import price was $57,000, or VND1.3 billion.
In Vietnam, the products of two French brands – Renault and Peugeot – are distributed.
Meanwhile, 27 cars from the UK came in January, worth $1.349 million, and 146 cars from Germany, worth $7.624 million, which meant the average import price was $52,220 for British cars and $49,998 for German cars.
