The Ministry of Finance in Vietnam may weigh up adjustments on the import tariff on used cars as the current taxation mechanism seems to prevent foreign cars from entering the country.
The ministry will monitor the market movements over a certain period of time to draw up a new policy, an official said.
Since Decree 12 on secondhand automobile imports took effect 10 days ago, only a few cars passed Vietnamese ports, the Vietnam Register, which is responsible for managing motorized vehicles in the country, said.
The current secondhand car market situation is in line with the Government’s policy of limiting the entrance of used cars to protect the environment and to encourage carmakers in the country, Deputy Minister of Finance Nguyen Chi Trung said.
However, if the current market situation keeps remains unchanged, an adjustment on import taxes will possibly be taken into account, he said.
The current criteria and taxes on imported used cars will keep obsolete cars at bay and encourage local automakers to reduce prices, Trung explained.
Under the current rule, used cars must be at least six months old, run at least 10,000 km and will be sent via only four international seaports of Cai Lan in Quang Ninh province, Haiphong city, Danang City and Ho Chi Minh City.
Meanwhile, the tax amount leveled on imported used cars would range from $3,000 to $25,000 depending on engine size. The combined absolute tax, luxury tax and VAT will drive up a used car price nearly equal to brand-new ones.
This rule also permits the Ministry of Finance to adjust the tariffs by up to 20% to regulate the market and prevent possible trade fraud.
Several carmakers in the country including Mercedes-Benz Vietnam and Ford Vietnam have reduced their car prices in early May in an effort to boost up sales in the downsizing market.
According to the Vietnam Automobile Manufacturers Association (VAMA), its 16 member group of carmakers sold 2,387 autos in total in April. Of the sum, 11 foreign-led carmakers sold 1,973 units, up 224 units against March.
Carmakers said the rebounding market is mainly attributed to the disappointment of car buyers in terms of used car prices. VNexpress
Vietnamese
