Automobile imports experience sudden surge in H1
07:46 | 08/08/2019

VGP – Over 75,000 cars were imported to Viet Nam in the first half of 2019, representing a year-on-year growth of 511.5%. The number of imported cars was equal with that in 2018, the Department of Import and Export under the Ministry of Industry and Trade reported. 

Illustration photo

Director of the Import and Export Department Phan Van Chinh was quoted as saying that in the first half of this year, Vietnamese enterprises monthly imported about 12,570 cars.

The number of four-seat cars witnessed the sharpest increase by accounting 72.8% of total number. These cars chiefly came from ASEAN thanks to zero percent import tariffs. 

The sudden surge raised import turnover of cars to US$ 10.35 billion, representing a year-on-year growth of 21.1%, accounting for 7.2% of import value. 

The number of imported cars surged sharply, but import turnover did not jump highly due to declining prices. 

According to Minister Tran Tuan Anh, Vietnamese enterprises made full use of tax incentives to boost import, directly affecting domestic production. However, it is an unavoidable situation amidst the international integration period. 

The Minister tasked the Department of Export and Import to review automobile import and consider options on domestic tax and enforcement of integration commitments in order to harmonize national benefits; nurture the domestic automobile industry; protect customers’ rights. 

Earlier, the Department on August 6 reported that automobile import value was forecast to reach a record high of US$ 3.4 billion thanks to sharply increasing domestic demands. The big surge may hamper the domestic automobile industry and trade balance. 

The Department of Industry stressed the necessity to early issue new policies which support large-scale automobile production projects and attract multilateral groups in the field./.

By Kim Loan 

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