Several automakers are considering assembling their best-selling models in Việt Nam due to the Government’s policy of zero import tariffs on components and a 50 per cent reduction in registration fees.
The Government will provide policy support for automakers, but not at the cost of breaking its international integration commitments, Prime Minister Nguyen Xuan Phuc has said.
Some 8,000 complete built-up units of cars worth US$180 million were imported to Viet Nam in August, marking a slight increase of 1,000 units in volume and $13 million in value compared with the previous month.
Vietnamese automakers and importers have been racing to reduce the price of many models in recent months ahead of the zero-tariff policy for car imports from ASEAN nations that goes into effect on January 1, 2018.
The Ministry of Industry and Trade and other ministries will form an inter-sector team that will help prepare local automakers face the impact of zero import tax on ASEAN automobiles.
Russian and Belarusian automakers are likely to face significant
challenges in Viet Nam, although some of their vehicles will enjoy
zero-per-cent tariffs when entering Viet Nam from yesterday, experts
said.
Many National Assembly delegates have expressed concerns about
difficulties domestic automakers would face if the special consumption
tax is deeply reduced.
Major automakers in Viet Nam reported a year-on-year sales surge of 6
per cent in November yesterday, riding on aggressive discounts and
continued popularity of smaller cars.