The success of the recent Viet Nam Motor Show 2014 which ended late last month and witnessed record sales, with 560 contracts signed, will also contribute to overall car imports this month. — Photo autopro

HA NOI (Biz Hub) — Viet Nam is likely to spend US$1.5 billion on auto imports for the entire 2014, the highest level so far in Viet Nam's history.

Figures from the General Statistics Office (GSO) showed that from January to November this year, total car import value reached $1.23 billion, a 100.7-per cent year-on-year increase.

The figures also showed that in November alone, as many as 8,000 cars worth $155 million were imported, which was similar to that of last September.

"With this momentum and the anticipated year-end shopping peak, the import value for this year could reach $1.5 billion," Do Ngoc Quang, a car analyst at www.caronline.com.vn, told Viet Nam News.

"If you look back at car import figures over the last five months, import volume and value climbed gradually from 6,000 units worth $133 million last June to 8,000 units worth $155 million last month," Quang said.

Meanwhile, the success of the recent Viet Nam Motor Show 2014 which ended late last month and witnessed record sales, with 560 contracts signed, will also contribute to overall car imports this month.

"The delivery time of a car contract is always within a month, which means more cars will be imported in December," said Luong Dinh Hung, general director of ASC Group, a prominent car importer in Viet Nam.

Hung noted that most of the sales contracts signed at VMS were luxury and high-end models such as the BMW 428i Gran Coupe, Mercedes S500 Coupe, Audi A3 Sportback and Lexus GX460.

A marked increase in the number of imported cars likewise took place in 2013. A total of 34,500 cars worth $709 million were imported, marking an increase of 25.9 per cent in volume and 15.2 per cent in value year-on-year.

Also, according to the Ministry of Finance, several types of vehicles will enjoy import tariff cuts beginning next year in line with Viet Nam's commitment to the World Trade Organisation on tax reduction.

In addition, under commitments to the ASEAN, auto import taxes will be completely abolished in 2018.

About two million cars and 37 million motorcycles are on the roads of Viet Nam, which has a population of more than 90 million. — VNS