Vietnam to maintain tax incentives for domestic cars beyond 2022
Car manufacturers are planning to shift production chains elsewhere to Vietnam in case such tax incentives are extended.
Car manufacturers are planning to shift production chains elsewhere to Vietnam in case such tax incentives are extended.
The number of imported cars in March are nearly the combined figure in the first two months of the year.
The sale figure in February, however, was on the decline for two consecutive months with a contraction of 22% against the previous month to 13,585 units.
The outlook of the car market for next year remains dim following a turbulent year in 2020.
Car sales in Vietnam in the January–November period dropped 14% year-on-year to 246,768 units across all segments.
Car sales in Vietnam in the January–October period dropped 18% year-on-year to 212,409 units across all segments.
The figure marked the first decline in car sales in four months, following month-on-month increases of 0.3% in July, 26.4% in June and 103% in May.
Car sales number in Vietnam in the first seven months of this year dropped 28% year-on-year to 131,248 units across all segments.
Vietnam imported 39,000 cars worth US$879 million in the first half of the year, down 47% year-on-year in volume and 47.7% in value.
A reduction of 50% of the registration fee for domestic cars and the removal of import tariff for car parts not available domestically would help boost the domestic car market.