Vietnam spends over 2.3 bln dollars on auto imports in 2016

Vietnam spent some 2.322 billion U.S. dollars on importing 115,000 automobiles in 2016, according to the General Statistics Office (GSO) on Tuesday.

The figures represented a decrease of 22.1 percent in value and 8.5 percent in volume year-on-year, said GSO.

According to local insiders, the biggest obstacle that slowed down Vietnam's auto imports in 2016 was the country's tax policy.

Specifically, since the beginning of last year, auto imports have faced new method of calculating special consumption tax, which is estimated to add some five percent to the prices of imported auto units in Vietnam.

In addition, from July 1, 2016, the special consumption tax applied on cars with larger engines has risen remarkably. To certain car types, the tax has increase from 60 percent to 150 percent.

The only highlight of the country's auto import market last year was among those with origins from Southeast Asian nations, including Thailand and Indonesia, local VNEconomy online newspaper quoted insiders as saying on Tuesday.

Those, mostly small engine cars, benefited from the new special consumption tax calculation method as well as from the preferential import tax offered by the ASEAN Trade in Goods Agreement (ATIGA).

This also explained the sharp increase in number of auto imports from Southeast Asian countries.

According to statistics by Vietnam Customs, the auto imports from Thailand and Indonesia accounted for two thirds of Vietnam's auto imports in 2016.

Source: www.xinhuanet.com