Car imports drop 46%

The number of imported cars dropped nearly 46% in July compared to the previous month, at 3,958 vehicles with a total value of US$72 million, according to data from the General Department of Customs.
According to Sai Gon Giai Phong, industry insiders attribute this decline to a circular dated May 12 this year issued by the Ministry of Industry on additional formalities in the import of passenger cars with nine seats or less.

Under the circular that took effect June 26, importers of passenger vehicles of nine seats or less must submit documents to competent state agencies to complete paperwork related to imports.

But taking into account this year, car imports are on the rise.

In the first seven months of 2011, 38,116 cars worth $703 million have been imported, representing an increase of 38.8% and 40.3% in terms of number and value compared to the same period last year.

In other news, as of August 15, Vietnam has begun to impose new tax rates on second-hand cars imported into Vietnam.

Accordingly, vehicles of less than 9 seats with size between 1,500 cc and 2,500 cc will be imposed a tariff of 82% plus a fixed tax of US$5,000.

Meanwhile, cars with more than 2,500 cc will be levied a tariff of 77% plus an absolute tax of $15,000.

Earlier, fixed tax rates were applied to all used cars irrespective of size.

But vehicles of less than 9 seats and less than 1,000 cc will be taxed a fixed amount of US$3,500 per car under the new regulations. Tax will rise to $8,000 for vehicles of 1,000 cc to 1,500 cc.

Now that the new rates depend on the value of the imported vehicles, the tax for luxury cars could be twice higher than previous rates.

According to TBKTVN, analysts have pointed out that with such calculation method, the import tax on second hand luxury cars with the capacity of 5.0L will be much higher than the tax imposed on brand new cars of the same type. – Tuoitre

Tags: Vietnam automotive, Vietnam automotive industry, Vietnam autos market, Vietnam car imports