Vietnam imports 25,000 cars in H1
Vietnam spent nearly US$500 million in the first half of 2014 to import 25,000 completely built units (CBU) cars, an increase of 44.4% in volume and 53.9% in value year-on-year, according to the General Statistics Office (GSO).
The volume of imported cars was highest in May, a total of 5,000 units worth US$106 million. The strong rebound showed that the import value of CBU cars has been on the rise since earlier this year.
The GSO estimated that volume in June would be similar. Value is expected to decline to US$84 million on imports of luxury sedans and sport utility vehicles.
CBU car imports were up 75% in the first five months, while locally assembled automobiles saw only a 23% year-on-year increase, according to the Vietnam Automobile Manufacturers' Association (VAMA).
Vehicle imports are increasing this year due to a tax cut that took effect on January 1. As part of the ASEAN Trade in Goods Agreement (ATIGA), the import tax on cars from ASEAN countries is cut in half. The tax will drop to zero when Vietnam joins the ASEAN Free Trade Area (AFTA) in 2018.