HANOI: Prior to that, a large quantity of Thailand sourced cars were reportedly docked at Vietnam’s ports, ready for delivery after customs clearance.
While importers rush to import cars, domestic automobile manufacturers have geared up with their production plans.
Hyundai Thanh Cong and Hyundai Group in South Korea have signed an MOU on building a new factory in 2019 which will help increase output for exports.Vietnamese usually prefer imports from Thailand and Indonesia to domestically assembled products.
Later, Vietnamese consumers were disappointed as ministries suggested a series of tax policies aiming to restrict imports and encourage local production.
In October 2017, the government released Decree 116 stipulating that importers must show VTA to get customs clearance. One month later, Decree 125 was issued, stipulating that most import car parts would be taxed zero percent. Both policies aimed to restrict imports.
The policies faced strong opposition from importers. They asked to amend the regulations, but Decree 116 remains unchanged. This resulted in a supply interruption and fluctuation of import prices.
Chair of the Vietnam Automobile Manufacturers’ Association (VAMA) Toru Kinoshita said at the meeting chaired by Minister and Head of the Government Office Mai Tien Dung that Decree 116 raises costs and time for all auto imports and resulting in higher vehicle prices.
