The sale of automobiles in the Vietnamese market made a significant recovery in March as 21,127 units were sold, accelerating by 70 per cent compared to the previous month.
According to the latest report of the Vietnam Automobile Manufacturers’ Association (VAMA), the sale of passenger cars gained 12,858 units, up 48 per cent, while the sale of commercial cars and special-purpose vehicles reached 6,949 units and 1,320 units, respectively, marking an increase of 109 per cent and 222 per cent.
In the import segment, after the Ministry of Transport allowed vehicle type approval (VTA) certificate from authorised agencies in Thailand and Indonesia, cars with zero per cent import tax have started to be imported to Viet Nam.
In the first two months of this year, the sale of automobiles was dragged down due to insufficient supply. The import of automobiles was “stuck” due to the regulations and procedures of the Government’s Decree 116 that stipulates the conditions for production, assembly, import and business of automobile warranty and maintenance services, including VTA from authorised agencies of countries in the ASEAN bloc.
The decree was issued to restrict the import of automobiles from ASEAN countries when the import duty became zero per cent from January 1, 2018, under the ASEAN Trade in Goods Agreement.
Meanwhile, the assembly of cars in the country felt short as automakers waited to import parts and components for local assembly with zero per cent import tax. This regulation is part of the Government’s Decree 125, in which a group of auto parts not yet produced locally will enjoy incentive tax at zero per cent.
The total consumption of automobiles in the market is predicted to not grow suddenly as both imported cars and parts are in the inception phase and will only be flooded mid-year.
According to the VAMA report, despite a significant recovery, in the first three months of the year, the total purchase of cars reached 59,558 units, down by 8 per cent over the same period last year. — VNS