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Zero import tax expected to raise Vietnam’s car ownership

Tax for cars imported from ASEAN has been slashed to 0%, which is expected to raise the country’s car ownership rate which remains low compared to regional averages.

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Owners of many auto showrooms claimed lots of customers had made deposits to buy ASEAN-imported cars while awaiting zero import duties.

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Dinh Quoc Dinh in Thu Duc District, HCM City, said he would put down a deposit to buy a Vios which is up to VND48-58 million cheaper now than before January 1.

To prepare for the zero import duties, a large number of ASEAN-imported cars have been brought to Vietnamese ports. At present, there are around 1,700 cars and pickup trucks at Hiep Phuoc Port in HCM City with the majority imported from Thailand and Indonesia.

Bui Xuan Truong, director of Truong Thanh Auto, said that the zero import duties could attract more customers to buy cars and the car sales are expected to boom early this year. Thailand and Indonesia will benefit the most among ASEAN countries from the zero import duties policy as they have many car models which meet the localisation rate of more than 40%.

Apart from this, the Special Consumption Tax reduction will be applied for low engine displacement vehicles, while the increase of this tax will be for high engine displacement vehicles. This will create opportunities for middle-income people in Vietnam to buy their own vehicles.

Following the lower taxes, prices of many car models have fallen considerably this year. Hyundai Thanh Cong showroom has announced to cut the price of Hyundai Grand i10 by VND20-40 million (USD909-1,818). Toyota Vietnam has also announced the car prices this year with the reduction ranging between VND24-58 million against 2017.

According to the survey by the marketing strategy consulting firm Solidiance released in last June, the car ownership ratio in Vietnam was only 16 cars for 1,000 people. This rate was lower than Malaysia’s 341 cars, Thailand’s 196 cars and Indonesia’s 55 cars.

One of the reasons is because prices are still high. Car manufacturing, as well as supporting industries, remains weak so Vietnam has to import completely built units. Moreover, poor…

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Startups

Vietnam Loship secures investment from Skype co-founder

This capital injection marks Loship as the first portfolio company of MetaPlanet in Vietnam and Southeast Asia.

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Hanoi (VNS/VNA) – Loship, Vietnam’s fast-growing one-hour-delivery e-commerce startup, has announced its latest investment from Skype co-founder Jaan Tallinn.

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United States

US pledges to enhance cooperation with Mekong subregion’s countries

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The US will bolster support for countries in the Mekong subregion through the Mekong-US partnership, US Principal Deputy Assistant Secretary of State for the Bureau of East Asian and Pacific Affairs Atul Keshap said at a recent online seminar to reveal results of a report on transboundary rivers and addressing challenges in Mekong River.

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Vietnam

Vietnam Import-export value surpasses 74 billion USD since 2021’s beginning

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Vietnam’s import-export turnover posted a year-on-year rise of 31 percent to reach 74.51 billion USD from the beginning of 2021 to February 16.

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In the reviewed period, Vietnam enjoyed a trade surplus of 2.63 billion USD, according to the Vietnam Customs.

During the Tet (Lunar New Year) holiday 2021 from February 10-16, a total of 960 firms conducted import-export activities, up 363 against the Tet holiday 2020.

A total of 10,300 customs declaration forms were filled out, up 59 percent against the previous holiday.

Meanwhile, the import-export value hit 1.67 percent, a year-on-year increase of 53 percent.

Main exports included mobile phones and spare parts, computers, electronics and components./.


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