Under the EVFTA, Vietnam will open its market to imports from EU with the preferential tariff of zero percent. The EVFTA is expected to take effect in 2020. As for automobiles, the import tariff will decrease by 7 percent per annum to zero percent. The base tax rates for cars, in EVFTA negotiations, are 78 percent for products with cylinder capacity of less than 3.0L and 74 percent for over 3.0. The cut of the tariff on car parts from the EU will allow Vietnamese automobile assemblers to increase the imports of car parts which still cannot be made domestically at low costs, thus reducing production cost and improving competitiveness. Most imports from Europe are luxury cars, including Mercedes Benz, Audi, BMW and Land Rover, and super-luxury ones such as Rolls-Royce and Bentley. Popular models such as Volkswagen, Volvo and Peugeot are also favorites in Vietnam. Tran Thuy Vietnam’s automobile market to be flooded with zero-tariff ASEAN cars The car sales in Vietnam … [Read more...] about EVFTA could bring more luxury cars to Vietnam
Sale tax deduction new car
Lideco urban area is humid and deserted Hanoi’s Department of Taxation has just issued the decision to fine Tu Liem Urban Development JSC (Lideco, code: NTL), headquartered in Cau Giay district. Accordingly, Lideco had missed the issuance of several declarations related to land use rights and value-added tax, as well as declared incorrect financial fees and costs. Lideco has been fined for 20 per cent of the total additional tax charge (after supervision), equivalent to VND364 million ($15,820). The company also paid VND1.8 billion ($78,260) of additional tax and VND164 million ($7,130) for late payment. As a result, the total amount Lideco had to pay is more than VND2.3 billion ($100,000). Previously, in 2017, Lideco was fined for VND1.4 billion ($61,650), including VND1.35 billion ($58,700) in corporate income tax and VND64 million ($2,800) in fines. Lideco was created by merging three facilities of Tu Liem operating in construction, maritime transport, and brick production. … [Read more...] about Real estate giant Lideco to be fined for billions of VND in taxes
Instead of distributing Nissan products, Tan Chong Motor will assemble, import and distribute Chinese cars in the Vietnamese market. The distributor of Nissan cars, the Malaysia-based Tan Chong Motor, will stop distributing Nissan products in Vietnam in September. if the project can be implemented, Tan Chong Motor would have opportunities to cement their positions in Vietnam’s automobile industry. The two sides have signed an MOU to expand cooperation in assembling, importing and distributing Chinese vehicles in Vietnam. Kim Chi Vietnam’s automobile market to be flooded with zero-tariff ASEAN cars The car sales in Vietnam are forecast to reach 500,000 units per year in 2020 and 1 million per year by 2030, with a turnover of US$12 billion each year. Two paths for Vietnam's automobile industry There are two clear investment tendencies in the automobile industry. First, becoming the leading assembling center in Southeast Asia, and second, buying … [Read more...] about Will Nissan’s old distributor bring Chinese cars to Vietnam?
Asked about the import tariff on luxury cars from Europe after the EVFTA takes effect, the Ministry of Industry and Trade (MOIT) said the competitiveness of EU sourced cars would improve. According to MOIT’s Deputy Minister Tran Quoc Khanh, high-cylinder capacity cars (more than 2500 cc) will see tariffs gradually cut to zero percent after nine years. Meanwhile, the tariff cut for less than 2500 cc cars will be implemented over 10 years, and the roadmap for car parts will be seven years. At present, cars from the EU bear a high tax rate of 70 percent. The selling price is 2-3 times higher than the original price because the cars bear many kinds of taxes and fees. The trade agreement includes an important provision that, five years after the agreement takes effect, Vietnam will accept the EU quality certificate, which means that the EU’s cars won’t need quality certificates to enter Vietnam. This means that Vietnam will create more favorable conditions for … [Read more...] about Vietnamese told not to expect high-end cars to become cheaper
Twenty years ago, five large automobile manufacturers asked Vietnam to open the automobile market. But the proposal was refused. The report from the Ministry of Industry and Trade (MOIT) to National Assembly Deputies showed that Vietnam’s automobile industry has been growing rapidly over the last two years. In 2017, Vietnam assembled 258,000 cars and the output of 250,000 products was maintained in 2018. About the achievements of the automobile industry, the report said many products have been exported to Laos, Cambodia, Myanmar and Central America. It has contributed billions of dollars to the state budget and generated 120,000 jobs. However, the ministry admitted too many problems in the industry, including the low locally made content ratio in products. The plan on raising the localization ratio for car models with less than 9 seats has failed. Under the plan, the ratio must be 40 percent by 2005 and 60 percent by 2010. However, the ratio is now 7-10 percent, far lower than … [Read more...] about Thai manufactured 3 million cars in 20 years, Vietnam assembled 250,000