Honda Vietnam threatens to reconsider investment plan in Vietnam

Honda Vietnam will reconsider its investment and business plans in Vietnam if it is hit by a multi-million dollar tax arrears bill.

The manufacturer stated in a document sent to the government opposing the decisions, from custom departments in Hanoi and Vinh Phuc province, for collecting $160 million in tax arrears payments.

The custom departments said Honda Vietnam had to pay tax arrears because its automobile imported part breakdown levels did not conform with existing legal regulations, in Decision 05 issued by the Ministry of Science and Technology.

The parts failing to meet regulations under the Decision 05 include two-piece exhaust pipes, door and window glass, seats’ completely-installed buffers and frames. Meanwhile, Honda Vietnam said tax arrears issue had appeared due to custom departments’ misunderstanding of imported tax regulations.

Honda Vietnam is the first foreign auto maker to announce it is reconsidering investment and business plans in Vietnam due to tax arrears issues. At present, scores of other auto makers in Vietnam have also been either hit by tax arrears payment bills or listed as enterprises forced to pay tax arrears like Honda Vietnam.

According to the Ministry of Finance, these firms include many automobile joint ventures like Ford Vietnam, Toyota Motor Vietnam and Vietnam-GM Daewoo Company. – VIR

Tags: Honda Vietnam, Vietnam automotive, Vietnam automotive industry

Posted by VBN on Aug 31 2011. Filed under Automotive. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry