Car imports decline

The General Statistics Office estimates imports of completely built unit (CBU) cars in November dropped by more than 50 per cent compared to the same month last year.

Roughly only 4,000 cars worth US$72 million were imported, against 11,500 units and $159 million in November last year.

Imports in the first eleven months of the year reached 46,000 units totalling $836 million, down 34.2 in volume and 22.4 per cent in value over the same period last year.

Industry insiders said that the downtrend differed from previous years when car imports often sharply increased at the end of the year in wake of an increasing demand ahead of the Lunar New Year (Tet) festival.

Industry insiders said that the decrease had been expected in the wake of the Government’s measures to restrict the trade deficit which have led to an increase in the value of the dollar.

They said if the dollar remained high, car imports would continue to decrease next month and into next year despite high demand before Tet.

In another move, the Ministry of Finance has plans to slash import tariffs on cars.

The ministry has put forward a tentative proposal to lower tariffs from early 2011, while it is consulting with the Viet Nam Automobile Manufacturers’ Association on the issue.

It plans to reduce the import tax rate on less-than-9-seat cars from 83 per cent to 70 per cent for imports from ASEAN countries. Meanwhile, imports from other regions will remain at 83 per cent in 2011.

Tags: Vietnam car imports

Posted by VBN on Nov 26 2010. 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