Car imports jump following tax adjustment

The drop in import tax on cars from ASEAN countries has led a hike in car imports to Viet Nam in the first two months of this year, especially from Thailand.

The drop in import tax on cars from ASEAN countries has led a hike in car imports to Viet Nam in the first two months of this year, especially from Thailand.-Photo kienthuc.net.vn

The tax was reduced from 40 per cent to 30 per cent under the ASEAN Free Trade Agreement (FTA) early this year. It will be zero per cent by 2018.

According to statistics from Viet Nam Customs, the country imported 8,027 completely built-up units worth US$158.4 million in February, increasing by 627 units but reducing by $5.3 million in value.

Of the figure, nearly 3,160 cars came from Thailand, or 43.2 per cent of the country’s total imports, 21 per cent higher than the previous month.

It was followed by the Republic of Korea with 1,444 units and Indonesia with 1,285 units.

India, which was for many months the leader in exporting cars to Viet Nam, however, witnessed a decline in February with 718 units. Cars from the South Asian country had the lowest value with an average price of $4,255 each.

Source VNA