An auto production line at Thanh Cong Huyndai Auto Plant in Ninh Binh province's Gian Khau Zone. (Photo: VNA)
Hanoi (VNA) - The General Statistics Office of Vietnam (GSO) estimated thatimports of completely built-up cars in April will likely jump in both volumeand value compared to the previous month.
Imports have increased again after severalmonths of dropping as the Vietnamese Government issued Decree 116 in Octoberlast year, stipulating the conditions for production, assembly, import andbusiness of automobile warranty and maintenance services, which auto importersin Vietnam deem as obstacles, especially regulation required the Vehicle TypeApproval (VTA) Certificate to be issued by the exporting country.
The jump in imports indicates that importershave found ways to fully meet the requirements of Decree 116.
Under the ASEAN Free Trade Agreementcommitments, the import tax rate of cars from ASEAN countries became zeropercent in January this year. Under this policy, at least 40 percent of theparts used in each vehicle must be made in the country of origin.
After the approval by Vietnam’s Ministry ofTransport of the VTA certified by the governmentsof Thailand and Indonesia, businesses have started importing thefirst batches of cars with the tax rate of zero percent.
Insiders anticipated that Thai and Indonesiancars would enter the Vietnamese market on a large scale beginning in thisApril, triggering a surge in imported cars in the coming time.
This month witnessed the import of around 2,000vehicles of Honda Motors from Thailand after the company stopped carexports to Vietnam for more than a month. Car from other countries suchas Indonesia and Malaysia are also expected to soon come toVietnam.
Global automakers have been predicting thatimports from Thailand and Indonesia would flood the Vietnamese market after thetax fell to zero, taking some of the wind out of the sails of domesticmanufacturing and assembly, said auto expert Nguyen Minh Dong.
The GSO reported that about 5,000 cars worth 115million USD were imported to Vietnam in March, marking an increase of 25percent in volume and 8.2 percent in value as compared with February.-VNA
VNA
