Vietnam imported 10,100 completely built units (CBU) cars worth 180million USD in the first quarter, up 44.1 percent in volume and 32.2percent in value year-on-year.
This estimate was furnished by the General Statistics Office (GSO).
Most of the car imports were luxury sedans and sport utility vehicles, according to the Customs Office.
Theincreasing number of car imports in the recent months has impacted themarket of the locally assembled cars, which has been showing a downwardtrend.
According to the Vietnam Automobile ManufacturersAssociation (VAMA), local car makers sold 4,509 units in February, down46 percent over the corresponding period last year.
Industryinsiders claim that the struggling Vietnam's car manufacturing industryhas already started importing vehicles well before the country is slatedto join the ASEAN Free Trade Area (AFTA) in 2018.
Moreover, in2013, there was a marked increase in the imports of CBUs. As many as34,500 CBUs, valued at 709 million USD, were imported, marking anincrease of 25.9 percent in volume and 15.2 percent in value,year-on-year.
When the presently applicable high taxes drop tozero in 2018, cars from ASEAN countries are expected to flood theVietnamese market.
Imports of vehicles are expected to increasein 2014 after a 50 percent reduction in the import tax on cars fromASEAN countries, effective from January 1, this year.
The tax cut is in compliance with Vietnam's signing the ASEAN Trade in Goods Agreement (ATIGA).
Statisticsby the Customs Office revealed that 8,826 cars, valued at nearly 150million USD, were imported from Thailand and Indonesia in 2013, morethan double the imports during the same period in 2012.-VNA