Trade on diplomatic cars will be tightened following a new prime ministerial decree. Photo dddn.com.vn

HA NOI (Biz Hub) — Diplomatic agencies, consular offices and the representative offices of international organisations in Viet Nam will be allowed to sell their cars or motorbikes to others in Viet Nam after using them for 24 months.

Currently these organisations pay no import tax when transporting vehicles from other countries to Viet Nam. Offices with five staff and below are allowed to temporarily import three cars and two motorbikes duty-free, while offices with at least eight staff can import four cars.

When they choose to sell their vehicle to others within the country after the two year period, there are two possibilities set out by a new prime ministerial decree which will come into force on November 11, 2013.

They can transfer the car or motorbike to a member of staff from a diplomatic agency in Viet Nam, providing the individual has worked there for a minimum period of 12 months. The buyer will pay no import tax.

Secondly, they can choose to transfer the vehicle to anybody, but the buyer will be forced to pay import tax based on the car's value.

As for temporarily-imported used cars that are more than five years old, the owners are not allowed to transfer them to Vietnamese people, but only other diplomatic agencies or individuals. If the owners do not use their cars anymore or end their term of office in Viet Nam, they will have to re-export or destroy their cars. — VNS