Fee cut drives up car imports

Fee cut drives up car imports

Viet Nam imported 16,000 completely built cars, or units (CBU), worth US$308 million in the first half of this year, up 17.8 per cent in volume and 7.5 per cent in value year-on-year.

The General Statistics Office (GSO) said the strong rebound shows that the import value of CBU cars has been rising since earlier this year, fuelled by hopes of a cut in new car registration fees.

Each month for the first four months of this year saw nearly 3,000 CBU cars being imported, with their value increasing sharply from $48 million in March to $50 million in April and $66 million in May.

However, their import value dropped to $55 million in June.

Meanwhile, from earlier this month, the Ha Noi People's Council started to cut the registration fees on new cars with fewer than 10 seats to 12 per cent.

Registration fees for second-hand cars with fewer than 10 seats will remain at 2 per cent.

The current level of 15 per cent was introduced at the beginning of April, down from the previous fee of 20 per cent.

This move aims to increase car sales in the city, helping car assemblers to recover from a loss of revenue caused by falling sales.

Motorbike users will pay a road-use fee of VND100,000 each year to the country's road maintenance fund.

Responding to these changes, HCM City is now considering lowering its fee to 10 per cent.

The Viet Nam Automobile Manufacturer's Association (VAMA) reported that sales of locally assembled cars in May rose by 11 per cent over April and 42 per cent over the same month last year, totalling more than 9,700 units.

The association, which is comprised of 18 leading domestic car assemblers, raised its estimate of total car sales this year from 100,000 to 108,000.

vietnamnews