Mazda model assembled at Truong Hai Auto Corporation in Chu Lai Open Economic Zone in Quang Nam province (Source: VNA) Hanoi (VNS/VNA) - Several automakers are considering assembling theirbest-selling models in Vietnam due to the Government’s policy of zero importtariffs on components and a 50 percent reduction in registration fees.
On July 20, Honda Vietnam introduced the fifth-generation CR-V 2020 and willstart selling cars built here from August 11 after three years importingcompletely built-up units from Thailand for distribution in Vietnam.
Mitsubishi Vietnam on the same day also introduced its best-seller Xpanderassembled at its plant in the southern province of Binh Duong and startedselling to customers in August after nearly two years importing fully built-upsfrom Indonesia.
Domestically-assembled Mitsubishi Xpanders will cost 30-40 million VND (1,300-1,720USD) less than imported versions due to registration fees being cut in half.
Previously, in mid-2019, Toyota Vietnam moved to assemble Fortuner models in Vietnamwhile other models remained imported.
Teh Kim Hwa, general director of TC Services Vietnam that distributes productsof British automobile company MG Motor in Vietnam, said that MG’s SUV MG HS andMG ZS models would be imported fully built-ups from China first then fromThailand from November this year to enjoy the zero import tariffs.
He added that some MG models were to be assembled at a plant in Da Nang from2021.
Although the 50 percent reduction in registration fees fordomestically-produced cars is only set to last until the end of this year, thepolicy has encouraged automakers to assemble models in Vietnam. The policy waslaunched amid the COVID-19 pandemic to promote sales of domestically-producedcars.
The policy took effect from July 10, meaning import tax would be zero forautomobile components which could not be produced domestically.
According to statistics of the Vietnam Automobile Manufacturers’ Association(VAMA), there are about 30 models with sales from 1,000 to more than 27,000units per year, 24 of which had sales from 3,400 units per year, eligible forthe policy of zero import tariffs on components for assembly in Vietnam.
The best-seller was Toyota Vios with annual sales of 27,000 units, followed byMitsubishi Xpander with 20,000 units, Hyundai Accent with 19,700 units andHyundai Grand i10 with 18,000 units.
Among the 24 models with sales from 3,000 units per year, six were imported,namely Mitsubishi Xpander, Toyota Fortuner, Ford Ranger, Honda CRV and FordEverest. Now, Mitsubishi Xpander and Honda CRV are assembled in Vietnam.
Automakers with the minimum output of 8,500 units per year and 3,500 units peryear for each model are eligible for the policy of zero import tariffs oncomponents for assembly in Vietnam.
The minimum output figures must be raised to 13,500 and 5,000, respectively bythe end of 2022./.
VNA
