About 45,000 completely-built-up (CBU) automobiles, worth 1.2 billionUSD, were imported into Vietnam in the first five months of the year,the Industry and Trade Ministry said.
The volume and value ofthe imports were almost 80 percent of the total for 2014 as a whole, at72,000 units and 1.57 billion USD, representing an increase of 62.8percent and 60.1 percent, respectively, compared to the same period lastyear.
In May alone, 10,000 automobiles, worth 337 million USD,were imported, posting an increase of 43 million USD in terms of value.This is the highest import turnover achieved since the beginning of2014.
The import of automobiles in recent months has shown aslight increase in volume and a significant rise in valuemonth-on-month. This is due to the increasing imports of trucks andspecialised vehicles, primarily from China.
The rapid and continuous surge of imported automobiles has put pressure on the domestic production and assembly sector.
Oneof the reasons why customers prefer imported trucks from China is thatthey are cheaper than those from other countries and even the locallyassembled trucks.
The ASEAN-China Trade in Goods Agreement inthe 2015-18 period, which took effect at the beginning of the year, hasapplied preferential taxes on imported CBUs.
Specifically, theimport tax on CBU trucks of more than 45 tonnes is zero, while on trucksof 25 to 45 tonnes, it is 10 to 15 percent.
A calculation ofthe Vietnam Association of Mechanical Industry (VAMI) said a locallyassembled truck (including assembling costs and import tax on spareparts) in Vietnam costs 24 percent higher than an imported one.
In addition, the country has no Made-in-Vietnam automobile.
Chairmanof Vinaxuki Bui Ngoc Huyen told Thoi Bao Kinh Doanh that lack ofcapital and the effects of tax policies were also factors.
FormerDirector of the Institute for Trade Research Nguyen Van Nam said thepurchase of automobiles has been increasing in recent years, despite theeconomic downturn.
However, Vietnamese people prefer imported automobiles over local products.
Many experts urged the quick completion of the development master plan for the country's automobile industry.
GeneralDirector of Ford Vietnam Jesus Metelo Arias said with the currentgrowth rate, the country's automobile market was expected to reach salesof 200,000 units this year. Among these, imported CBUs will account forhalf of the total.-VNA
The volume and value ofthe imports were almost 80 percent of the total for 2014 as a whole, at72,000 units and 1.57 billion USD, representing an increase of 62.8percent and 60.1 percent, respectively, compared to the same period lastyear.
In May alone, 10,000 automobiles, worth 337 million USD,were imported, posting an increase of 43 million USD in terms of value.This is the highest import turnover achieved since the beginning of2014.
The import of automobiles in recent months has shown aslight increase in volume and a significant rise in valuemonth-on-month. This is due to the increasing imports of trucks andspecialised vehicles, primarily from China.
The rapid and continuous surge of imported automobiles has put pressure on the domestic production and assembly sector.
Oneof the reasons why customers prefer imported trucks from China is thatthey are cheaper than those from other countries and even the locallyassembled trucks.
The ASEAN-China Trade in Goods Agreement inthe 2015-18 period, which took effect at the beginning of the year, hasapplied preferential taxes on imported CBUs.
Specifically, theimport tax on CBU trucks of more than 45 tonnes is zero, while on trucksof 25 to 45 tonnes, it is 10 to 15 percent.
A calculation ofthe Vietnam Association of Mechanical Industry (VAMI) said a locallyassembled truck (including assembling costs and import tax on spareparts) in Vietnam costs 24 percent higher than an imported one.
In addition, the country has no Made-in-Vietnam automobile.
Chairmanof Vinaxuki Bui Ngoc Huyen told Thoi Bao Kinh Doanh that lack ofcapital and the effects of tax policies were also factors.
FormerDirector of the Institute for Trade Research Nguyen Van Nam said thepurchase of automobiles has been increasing in recent years, despite theeconomic downturn.
However, Vietnamese people prefer imported automobiles over local products.
Many experts urged the quick completion of the development master plan for the country's automobile industry.
GeneralDirector of Ford Vietnam Jesus Metelo Arias said with the currentgrowth rate, the country's automobile market was expected to reach salesof 200,000 units this year. Among these, imported CBUs will account forhalf of the total.-VNA
