Vietnam’s car imports jump 34 pct y/y in Q1 on tax cuts
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Vietnam’s car imports have risen a staggering 34.4 percent from a year ago to 26,500 units, with more than half of them coming from low-tariff markets in Southeast Asia, customs figures show.
The car import value in the first quarter edged up just 1 percent from the same period last year to $488 million, data from the General Customs Department showed.
Cars from Southeast Asian countries totaled 14,460 units, accounting for 55 percent of the quarterly import volume and which jumped 67.6 percent from a year ago, the data show. The import from Indonesia increased five-fold.
The strong purchase was fueled by large tariff cuts from major markets like Indonesia and Thailand, citing several importers. The import tariffs on cars from ASEAN countries have been cut to 30 percent as of January 2017, from 40 percent last year, before being fully removed in 2018.
The tax cuts have helped reduce the retail price in Vietnam by 6-7 percent, the businesses said.
Questions & Answers
Q.Which specific countries contributed most to the increase in car imports from Southeast Asia?
Which specific countries contributed most to the increase in car imports from Southeast Asia?
The strong increase in car imports was primarily fuelled by purchases from major markets like Indonesia and Thailand. The article specifically notes that imports from Indonesia increased five-fold during the period.
Q.What impact have the tariff cuts had on the retail price of cars in Vietnam?
What impact have the tariff cuts had on the retail price of cars in Vietnam?
According to businesses, the tariff cuts have directly resulted in a reduction of retail car prices in Vietnam. These prices have decreased by an estimated 6-7 percent due to the new tariffs.
Q.When are the tariffs on cars from ASEAN countries expected to be fully removed?
When are the tariffs on cars from ASEAN countries expected to be fully removed?
The import tariffs on cars originating from ASEAN countries were reduced to 30 percent as of January 2017. They are scheduled to be completely removed during the year 2018.
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