Car imports surge in July
Car imports surge in July
The number of imported completely built-up units in July increased by 25 per cent compared with June, touching 10,839 units, according to statistics of the General Department of Customs.
However, the total value of the imported units fell by 16 per cent to reach US$208.2 million in July.
The imbalance between the volume and the value proved that most of imported vehicles were small and inexpensive sedans.
In the first seven months of this year, more than 60,600 units were imported, marking a year-on-year increase of nearly six per cent. Meanwhile, the total value was more than $1.4 billion, a fall of 17.3 per cent.
Thailand exported the maximum vehicles to Viet Nam, with 3,700 units in July, a 44 per cent increase year-on-year, followed by South Korea, India, China and Japan.
The number of automobiles imported from China continuously fell from more than 2,000 units in April to less 1,000 in July. In the first seven months of this year, the export of Chinese automobiles to Viet Nam fell from 18,000 units to 8,000 units year-on-year.
The import of automobiles from Thailand continuously increased during the seven months, with 18,837 units being shipped to Viet Nam, worth more than $343 million.
Last month also saw the resumption of import of Indian automobiles, with 1,877 units being sent to Viet Nam.
In June, the import of Indian vehicles had fallen from more than 3,500 units to 137 units, marking an unwonted reduction because the businesses had waited for the Law on Special Consumption Tax that came into effect on July 1, reducing the tax from 45 per cent to 40 per cent for under 1,500cc vehicles with small engine displacement.
Most of the vehicles imported from India are sedans with a low engine displacement.
In the near future, the import of small sedans is expected to increase because of the reduction of the special consumption tax as of July 1.
Circular 20 on automobile imports
In a movement related to Circular 20 on automobile imports, which was due to expire on July 1 this year, the Ministry of Industry and Trade (MoIT) has asked the Prime Minister not to approve a proposal on discharging regulations on automobile guarantees and maintenance services in the 2014 Investment Law.There was disagreement between auto businesses when the MoIT put the circular's contents into a draft decree.
Instead of the circular's regulation requiring importers of CBUs with less than nine seats to show proof that they are authorised dealers of foreign automakers, the ministry is planning to ask for automobile guarantee and maintenance services from the brand's official suppliers.
If the proposal is approved, car users will have to get a guarantee and maintenance certificate from official suppliers or authorised businesses.
Vehicles without guarantee and maintenance certificates issued by official suppliers or authorised businesses would not be allowed to be used in Viet Nam, the MoIT proposal said.
MoIT wanted to co-ordinate with the transport ministry and relevant ministries and sectors to quickly issue regulations that have impacts similar to Circular 20 applying on all road vehicles, ensuring that all have guarantee and maintenance certificates or repair being done as per international regulations and meeting the safety standards of Viet Nam.
The ministry said it would rely on regulations of competition to supervise the import and distribution of automobiles in Viet Nam to ensure a fair and competitive environment for businesses, especially small and medium ones.
Following five years of implementation, Circular 20 on automobile imports -- issued in 2011 by the industry and trade ministry requiring importers of CBUs with less than nine seats to show proof that they are authorised dealers of foreign automakers and give certificates of qualified guarantee and maintenance services granted by the transport ministry -- was alleged to have created exclusive rights for several businesses, limited the automobile joint ventures' capacity for localisation and eliminated many small auto enterprises from the auto import sector.
