Truck cabins have been produced at a Vinaxuki factory. Photo VNA/VNS Photo duc Tho

HA NOI (Biz Hub) — Xuan Kien Automobile Joint Stock Company (Vinaxuki) has asked the Government to reduce the 70 per cent consumption tax on its locally made cars from January.

Vinaxuki said this would help expand the manufacturing of eight-seat vehicles, popular in rural areas and as taxis - as well as push up its localisation process.

The company also wants to borrow VND250 billion (US$11.9 million) from Vietnam Development Bank over seven years under the national mechanical engineering plan.

It also wants to borrow long-term funds or delay paying tax from October this year so that it can invest in research, design, technology transfer and make its own engines..

Vinaxuki has been manufacturing and distributing models of buses and trucks. Its factories have a total capacity of 60,000 units per year.

Its move follows the Government's acceptance of a request from the Truong Hai Automobile company (Thaco) to extend its deadline for paying import tax. Many other automobile businesses have since followed Thaco's move..

Vietnam Engine and Agricultural Machinery Corporation asked the Government to extend its deadline for import tax payments because it needed to concentrate on automobile industry development..

Other businesses, including Thanh Cong Joint Stock Company, TMT Automobile company, Hoang Tra Company Ltd, Vinaxuki and Dong Phuong Automobile Company Ltd, made similar proposals. — VNS