17:24 (GMT +7) - Tuesday 12/12/2017

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November motor car imports at $200mn

Released at: 17:18, 30/11/2017

November motor car imports at $200mn

Photo: VnEconomy

Some 7,000 cars imported during the month, higher than poor September and October results.

by Ngoc Chi

Vietnam imported around 7,000 completely-built-up (CBU) motor vehicles worth $200 million in November, according to the latest report from the General Statistics Office (GSO).

Total CBU imports in the first eleven months of the year reached 84,000, worth $1.9 billion, down 14.7 per cent in volume and 11.4 per cent in value year-on-year.

CBU imports in November, meanwhile, recovered in both volume and value compared to October. In September and October, CBU imports were worth $155 million and $165 million, respectively, on volumes of around 6,000 units in total; the lowest rates for two years.

The recovery in CBU imports in November is mainly thanks to demand for car purchases at the end of the year. At the same time, this is also a time when many car manufacturers are in the process of finalizing signed contracts with foreign partners.

The imported CBU market has not really grown strongly this year. Insiders said domestic auto consumption is currently unstable because many consumers are waiting for motor car prices to be lowered in early 2018, when import tariffs in the ASEAN bloc will become 0 per cent.

Local automakers and distributors have been trying to accelerate consumption through discounts and promotional programs.

The government recently issued Decree No. 125 to add auto spare parts that cannot be produced by domestic producers to the list of goods entitled to the zero tax rate.

Immediately after the issuance of Decree No. 125, some domestic manufacturers and assemblers such as Truong Hai and Thanh Cong Hyundai immediately applied discount prices ranging from 3 to 5 per cent.

Industry experts predict that motor cars imported from Thailand and Indonesia will continue to increase in the near term because of commitments Vietnam has made under the ASEAN Trade in Goods Agreement (ATIGA), with taxes on CBU imports to fall to 0 per cent in 2018 compared to 30 per cent currently.

 

 

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