Car Market Freezes, Buyers Wait for New Tax Policies
Vietnamese potential car buyers are again delaying their purchasing decisions as they are informed that the import tax may be reduced after Vietnam joins the WTO, which is expected to become reality ahead of the APEC summit meetings in November.
The sales of both new and used cars are falling down in Vietnam, especially in the past two months, market experts said.
The Vietnam Automobile Manufacturers Association (VAMA) reports the combined sales of its 15 members fell 8 per cent on-year in the first eight months of this year to 23,022 units.
VAMA members admitted that the sales shrinkage was also contributed to their sky-high prices, which have irritated buyers.
The current car price level in Vietnam is about two times higher than the regional average.
Meanwhile, used car trading firms are witnessing a sharp drop in selling volumes in recent months.
Phan Huu Tam, director of the Ho Chi Minh City-based Tradaco - a large importer of used cars in Vietnam, said the sales of secondhand cars have decreased 30-40 per cent.
According to market experts, Vietnamese consumers are waiting for possible new tax policies on both new cars and used cars after Vietnam is admitted to the WTO.
The new tax rates are predicted to be equal to 70 per cent of the current levels.
Vietnam is now home to over 40 car makers and assemblers, including 12 operational foreign-led firms like Toyota, Ford, GM-Daewoo, Mitsubishi, Honda, KIA and BMW.
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