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Car imports cut due to tariff hike
Economists say a reduction of 1,000 imported cars in May compared with April is a positive response to a new policy that increased import tariffs.
The Ministry of Industry and Trade said imports of almost 6,000 vehicles, worth 96 million USD in May, saw a reduction in imported cars worth 7 million USD.
The policy gained its dual purpose of curbing inflation and protecting domestic car production, ministry experts said.
Leading national car makers such as Toyota Vietnam , Honda Vietnam and Ford Vietnam have cashed in on the policy and increased the price of their products.
Despite a rise in prices of domestic cars, supply has still lagged behind demand, resulting in a long waiting list for luxury vehicles.
The Vietnam Auto Makers’ Association said the industry sold almost 11,500 assorted cars in May.
Explaining a surge in the sale of domestic cars, dealers said an imported Camry 3.5Q, levied with an 83 percent tariff, will cost 69,000 USD which is equivalent to a Mercedes C-class assembled at home.
Import tariffs for complete-built-unit (CBU) cars increased from 60 percent in March to 83 percent in April.
In an effort to fulfill its commitments to reduce the nation’s trade deficit, the Prime Minister last month called for curbing imports of unnecessary commodities and continuing with increases in import tariffs on luxury goods.
During a recent National Assembly hearing, Finance Minister Vu Van Ninh also said it was necessary to “adjust car import tariffs” in a series of measures to be taken to curb inflation and ensure social security.
He also said a rise in import duties levied on cars would help boost domestic production to achieve the strategic goal of building a strong domestic auto-making industry in the next 10 years.
VNA
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