Chuck Kuhn's Asia in Photos: Vietnam's auto import surges despite higher tariffs

Wednesday, May 28, 2008

Vietnam's auto import surges despite higher tariffs_English

Vietnam's auto import increased although the country raised tax on imported new passenger automobiles to 83 percent from previous 70 percent on April 22 in a move to narrow trade deficit, curb inflation and relieve traffic congestion.

The country also hiked tariffs on automobile components and parts by 3-5 percentage points at the same time.

According to the country's General Statistics Office on Wednesday, Vietnam imported 35,400 completely-built automobiles, mainly cars, valued at 625 million U.S. dollars in the first five months of this year, compared 5,000 units of automobiles and cars at a value of 109 million dollars in the same period last year.

Vietnam also spent 681 million dollars importing automobile parts and components for assembly between January and May, up from204 million dollars in the same period last year.

The higher tariffs have lifted showroom prices of many kinds of domestically-assembled automobiles by around 300 dollars per vehicle.

"In April, we raised the price of our Camry 2.4 to 51,100 dollars from 50,600 dollars," said Nguyen Nhu Y, a saleswoman of Toyota Hoan Kiem, the biggest agent of Toyota Vietnam.

At the Toyota Hoan Kiem's office in the capital city of Hanoi, a local construction engineer named Nguyen Huy Duc was checking out a blue navy car branded Vios G. "It sells for 29,200 dollars now. Its price early last month was 28,900 dollars. The change isn't too much, so I'll buy it," the middle-aged man said.

"Though the import tax was hiked recently, the number of customers coming here has remained almost unchanged. However, it might change if luxury taxes increase," the young saleswoman said, noting that Toyota Vietnam recorded sales of 20,113 vehicles in 2007, posting year-on-year surge of 160 percent, and a domestic market share of 25 percent.

Vietnam's Finance Ministry plans to increase luxury taxes on automobiles in the coming time.

Now, automobiles with fewer than five seats are subject to the luxury tax rate of 50 percent, 6-15 seats 30 percent, and 16-24 seats 15 percent.

Editor: Yan Liang

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They say "

“I can’t say what made me fall in love with Vietnam - that a woman’s voice can drug you; that everything is so intense. The colors, the taste, even the rain. Nothing like the filthy rain in London. They say whatever you’re looking for, you will find here. They say you come to Vietnam and you understand a lot in a few minutes, but the rest has got to be lived. The smell: that’s the first thing that hits you, promising everything in exchange for your soul. And the heat. Your shirt is straightaway a rag. You can hardly remember your name, or what you came to escape from. But at night, there’s a breeze. The river is beautiful. You could be forgiven for thinking there was no war; that the gunshots were fireworks; that only pleasure matters. A pipe of opium, or the touch of a girl who might tell you she loves you. And then, something happens, as you knew it would. And nothing can ever be the same again.”
― Graham Greene, The Quiet American

Tips on Travel to Vietnam

It's always warm in Southeast Asia apart from high mountains, so leave the heavy clothing at home. Cotton and breathable fabrics are always better than synthetics -- although cotton does wrinkle a lot when traveling! December through April is roughly the dry season in that region, although it can still rain a little. December is a good time to go in terms of temperature -- cooler than in the humid summertime. Either way, wearing more clothing (shirt sleeves and long pants) is always more respectful towards the Asian culture, especially when visiting temples and rural areas.