German Cars Coming To Vietnam 30% Discount: Ballast Waiting for Vehicles

German Cars Come to Vietnam with 30% Discount: Save Money to Wait for a Reputable Luxury Car Thanh Phong Auto Garage Hcm 2024

When Vietnam and the EU sign a free trade agreement, cars imported from Europe will enjoy a tax reduction of 0%. Only the next 3-5 years, car prices from Europe may drop up to 30% compared to now. 

Meanwhile, imported cars will have great strengths. In order to develop the domestic auto industry, according to enterprises, right this year, the State needs to issue more preferential policies to encourage investors.

Looking forward to the offer

Recently, the Ministry of Finance has mentioned the amendment of the Law on Special Consumption Tax on automobile goods. Specifically, according to the proposal of the Ministry of Finance, the excise tax calculation price for car articles below 9 seats or less, domestically produced, is the price sold by the manufacturer minus the flexible value. home-made accessories and spare parts ”.

The implementation of this policy, the Ministry of Finance said, will encourage automobile manufacturing and assembly enterprises to increase localization rates, thereby developing the Vietnamese automobile industry.

If being exempted from special consumption tax, with the components produced domestically, the cost will certainly be reduced, businesses will be able to reduce car prices and consumers have easier access to cars than today.

German Cars Come to Vietnam with 30% Discount: Save Money to Wait for a Reputable Luxury Car Thanh Phong Auto Garage Hcm 2024

Currently, the supporting industry is small and weak (illustrated image)

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Enterprises manufacturing and assembling cars also look forward to this policy. However, the general opinion is that there should be more incentives to create synchronization, to bring efficiency.

At present, the supporting industry is small and weak. Operating in supporting industries, mainly small and medium enterprises, low technology with little investment. The strength is the production of simple mechanical and plastic components, of medium and low technology content, of small value in the product value structure.

With such an underdeveloped supporting industry, even if it is exempted from excise tax on domestic components, the price of cars is unlikely to drop sharply. If there is no force for local parts suppliers with guaranteed quality, then special consumption tax incentives are meaningless.

What automobile companies have to do is to try to support domestic component manufacturers, so that they have products that meet quality standards. However, to develop a strong contingent of domestic component manufacturers, it takes time as well as effective supportive policies.

According to Mr. Le Ngoc Duc, General Director of Hyundai Thanh Cong Company, although supporting industries in 6 manufacturing industries are prioritized for development and given investment incentives, the incentives are just like other industries. Therefore, the automotive supporting industry for a long time has only reached 7-10% of the product value and has not made a breakthrough.

Meanwhile, supporting industry enterprises are also facing challenges when car components imported from ASEAN countries have fallen to 0% since 2018. While domestic supporting industry enterprises are subject to import tax For raw materials and supplies for the production of components, imported automobile components are entitled to 0% tax, so they are not competitive.

Therefore, enterprises proposed functional agencies to soon build a specific mechanism of import tax exemption policy for raw materials and input materials to produce automotive components and spare parts right in the year of import-export. .

German Cars Come to Vietnam with 30% Discount: Save Money to Wait for a Reputable Luxury Car Thanh Phong Auto Garage Hcm 2024

Vietnamese automobile enterprises expect to have more preferential policies with domestic cars

If raw materials imported for automobile components production decrease to 0%, enterprises will be encouraged to invest in component production and contribute to reducing costs and reducing car prices.

In addition, there should be a strong incentive policy for manufacturing and assembling electric cars and hybrid electric cars. The current incentives, are not enough to encourage businesses to invest in this product.

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Import car worry about

The automobile industry is heavily dependent on production. Only large volumes will help the industry support development. Therefore, it is necessary to ensure the stable growth of the automobile market. Must prevent, do not let imported cars overflow into large quantities cheaply.

Currently, CBU cars are imported into Vietnam with increasing numbers and prices on par with domestically assembled vehicles. According to the latest statistics of the General Department of Customs, although coinciding with the Lunar New Year holiday period, the number of imported cars (CBU) into Vietnam in the month of 2 / 2019 still increased sharply with the 14.134 of cars. In particular, most imported models are from Thailand and Indonesia.

According to a report from the Vietnam Automobile Manufacturers Association (VAMA), in the first month of the year, the sales of domestic assembled vehicles (CKD) decreased by 2% while the imported cars increased by 2019% compared to the previous year. with the same period. If the supply is even better, imported cars can balance assembled car sales in the coming months, even surpassing to dominate the market.

In the near future, Vietnam and the EU will sign a free trade agreement, cars imported from Europe will be reduced tax on import duty. Only 0-3 next year car prices from Europe can be reduced to 5% compared to today. Imported cars will have great strengths.

According to businesses, preferential policies for the automotive industry, need to be formulated in the year of import and export, in order to work. As long as the opportunity to develop the automotive industry will no longer exist.

According to Trần Thủy

Vietnamnet

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