Thaco Kia is offering thousands of gifts worth between VND3 million and VND10 million ($142-476) to customers.— Photo thesaigontimes.vn

HA NOI (Biz Hub) — Auto sales in HCM City are likely to dip this month because many customers are waiting for a registration fee cut to come into effect from January 1, 2014.

The new fee, calculated at 10 percent of the value of vehicles with less than 10 seats, will be less than the current registration fee of 15 per cent. For example, if a customer orders a car worth VND1 billion (US$47,600), he/she will save VND50 million ($2,380) – not a small sum in the context of the current economic problems.

Nguyen Tuan Anh, salesperson at the Honda Kim Thanh showroom in District 11, told VnMedia that sales at his showroom are estimated to dip by 20-30 percent this month compared with November, because customers are waiting for the registration fee cut.

Meanwhile, some other showrooms in the city said that their sales have decreased by half compared with previous months.

To boost sales, many automobile firms are carrying out promotion programmes, especially during the Christmas and New Year holidays.

Hyundai has cut prices by VND70 million ($3,330) for the Isuzu model. Vina Mazda is offering gifts on the occasion of Christmas and the New Year holidays, and Thaco Kia is offering thousands of gifts worth between VND3 million and VND10 million ($142-476) to customers.

Buying a car at the end of 2013, but paying the registration fee early in the New Year is being seen as a wise option. At a Kia showroom in the city, Ho Trung Dung, a local resident, said he has decided to buy Carens S 2014 for his family members to enjoy the spring during the coming Tet (Lunar New Year). He has paid a deposit on the car to avail of the promotional gifts which are being offered by the showroom in December only. But he will receive the car after January 1, 2014 to avail of the registration fee cut.

HCM City was the city that was charging the highest registration fee of 15 percent in Viet Nam. After that fee is cut in the New Year, Ha Noi will become the city that charges the highest fee of 12 percent. The registration fee charged by other cities and provinces is 10 percent. — VNS