Vietnam’s Auto, Auto Parts Imports Down 63.5 per cent in First Quarter

Vietnam is estimated to have spent US$269 million on imports of automobiles and auto spare parts in the first three months, down 63.5 per cent on-year, according to the General Statistics Office (GSO).

 

The country reportedly bought 6,000 completely-built units (CBU) worth of US$102 million in the period, down 71.2 per cent on year in volume and 72.4 per cent in value.

 

In March, the CBU import volume increased slightly to 2,500 units worth of US$60 million, nearly equal to the value of the two previous months.

 

The CBU imports in the first two months of the year were 3,500 cars worth US$62 million, GSO said.

 

The sharp drop in car imports in the first quarter of 2009 is attributed to adjustments of the tax policies by the Government of Vietnam and the global economic recession.

 

However, the imports increased again in March, especially in terms of value, which has been attributed to the fact that the luxury tax will take effect as of April 1. In order to avoid the tax, businesses and people have been trying to purchase cars, including imports, before the new tax comes into effect.

 

From April 1 the prices of 6-9 seated cars and the car models with five seats and less which have a high cylinder capacity of over 3,000 cubic meters are expected to increase drastically. As for import cars, these will be luxurious and super luxurious models. (Vietnam Economic Times)