CBU automobile imports hit record high
CBU automobile imports hit record high
The country imported up to 75,430 completely-built-up (CBU) cars of all types worth US$1.7 billion in the first half of the year, up 511.5% in volume and 411.2% in value year-on-year, the record highs for CBU automobile imports over the past few years, the local media reported.
Speaking at a meeting on August 7, Phan Van Chinh, head of the Import and Export Department at the Ministry of Industry and Trade, said the figure for automobile imports was nearly equivalent to that seen in 2018.
Vietnam’s automobile imports averaged 12,570 units per month during the six-month period, equal to all imports in the last five months of 2018.
Chinh attributed the upsurge in CBU car imports to excise tax cuts for certain automobile lines of small engine capacity. Besides this, automobile imports from ASEAN countries enjoy zero-percent tariffs, which has resulted in ASEAN car imports strongly increasing.
Addressing the meeting, a representative of the ministry pointed out that automobile importers and manufacturers have met requirements, especially on vehicle type approval certificates, based on the Government’s Decree 116 on automobile manufacture, assembly, import, maintenance and warranty services, leading to the rise in the automobile imports.
The representative, however, noted that the automobile import spike has hurt local automobile manufacturing and assembly.
The Heavy Industry Department at the ministry proposed adopting support policies as soon as possible to speed up major projects involving the manufacture and assembly of automobiles, apart from calling for investment from multinational firms for large-scale projects.
Regarding automobile import and export activities in the coming months, Minister of Industry and Trade Tran Tuan Anh told the Import and Export Department to collaborate with the Trade Remedies Authority to review and list groups of products at risk of getting involved in trade disputes, to work out suitable solutions.
