A report from the General Department of Customs showed that 4,300 cars were imported under the mode of complete built unit (CBU) to Vietnam from ASEAN countries in the first five months of the year, worth $65.4 million. More than 50 percent of the imports were pick-ups.
Explaining the strong surge of pick-up imports, an analyst said they now have tax advantage over other products like sedans, MPVs and SUVs. Pick-ups from ASEAN countries have a five percent import tax, 15 percent luxury tax and 2 percent ownership registration tax.
In addition, the domestic demand for pick-ups has been increasing rapidly since pickups have become better designed and more comfortable.
In the past, pick-ups were sold mostly to businesses that needed to carry cargo.
Meanwhile, they are now sold to individuals who use them as family cars or to people who want to save money, particularly as diesel prices are lower than petrol prices, which are rising.
Realizing the increase in demand for pick-ups, automobile joint ventures have been stepping up the import of pick-ups from Thailand.
A representative of Toyota Vietnam said Hilux, a Toyota pick-up model made in Thailand, would be imported in large quantities soon.
Pick-up models available in Vietnam sell for up to VND750 million, which are still higher than in other regional countries, even though taxes and fees have been cut.
However, prices are expected to fall sharply in the time to come as import tariffs decrease gradually under the framework of the ASEAN free trade agreements. The import tariff will fall to zero percent by 2018.
