Vietnam’s automobile production hit due to imported vehicles
The Vietnam Customs Department has reported that 109,000 automobiles were imported into the country in the first nine months of 2019, increasing 167.8 per cent or US$2.4 billion (Bt73 billion) and expanding by 157 per cent compared to the same period last year.
“In September alone, Vietnam imported 13,000 automobiles, increasing 38 per cent or $260 million in trade, and rising by 24 per cent from August 2019,” Vietnam’s Office of International Trade Promotion said.
According to Customs Department information, most of the automobiles imported into Vietnam are from Thailand, Indonesia, Japan, China, and Germany, making up 97 per cent of total imports.
The increasing imports have led to a reduction in automobile production and assembling in Vietnam: in 2017, assembly capacity was 258,733, while it dropped slightly to 258,116 in 2018, but fell to 131,089 in the first half of this year.
Vietnam’s Industry and Trade Ministry exempts tax on vehicles imported from other Asean countries, showing the country’s market needs more support.
The ministry is also planning to beef up quality control on imported cars to prevent an influx of subpar vehicles.