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CBU imports from Thailand & Indonesia soar

Released at: 14:39, 17/07/2017

CBU imports from Thailand & Indonesia soar

Illustrative image. Source: Vneconomy

Two countries dominate import of completely-built-up motor vehicles during first half.

by Tue Lam

Thailand and Indonesia dominated the importation of completely-built-up (CBU) motor vehicles in the first half of this year.

According to the General Department of Vietnam Customs, Vietnam imported a total of 48,354 CBUs worth more than $966 million in the first half.

Thailand and Indonesia led the way among the 12 countries and territories exporting CBUs to Vietnam.

Imports from Thailand reached 19,170 units worth approximately $347 million. After a period of rapid acceleration, Indonesia has narrowed the gap with Thailand, exporting a total of 10,484 CBU motor cars to Vietnam in the first half worth more than $184 million.

Total CBU import from the two countries therefore stood at 29,654 units, worth more than $531 million and accounting for more than half of such imports in both volume and value.

The first and most important advantage the two countries hold is that import tariffs are significantly lower than CBU imports from other countries, including those from with most-favored-nation status from the WTO and ASEAN and ASEAN +, such as as South Korea, Japan, and China.

Other advantages are geographical proximity and procedures for finalizing import and export contracts. Being in Southeast Asia and members of the ASEAN Community as well as members of the ASEAN Trade in Goods Agreement (ATIGA), costs and import time are lower than for many other source countries.

For example, imported motor cars from Europe or the US can take at least three months, while imports from Thailand and Indonesia take only 30 days.

Under the ATIGA tariff reduction schedule, meanwhile, tariffs on imported CBU motor cars from ASEAN countries will be zero per cent from January 1, 2018.

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