Auto imports experience year-end season surge

By Ngoc Tuan November 5, 2018 | 06:38 pm PT

Long lines of cars on Hanoi roads during rush hour are the new norm in the capital as more people ditch motorbikes for the four wheeler. Photo by VnExpress/Ngoc Thanh

Up to 13,000 vehicles were imported last month, almost three times the number in October 2017.

October also saw the highest number of completely built units (CBUs) imported so far this year, according to Vietnam Customs.

However, the total volume of imported cars in the first 10 months of this year decreased over the same period last year, because of a decree that took effect this year, setting tough conditions for car imports.

As of the end of October, the total number of imported CBUs is estimated at over 53,000 units, down 31 percent from the 77,000 units recorded in the same period last year.

The number of imported vehicles only started rising since August this year, after a slump that lasted more than six months.

Vietnam imported 12,380 CBUs worth $329 million in the first half of this year, down 75.5 percent in volume and 68.3 percent in value over the same period last year, according to Vietnam Customs.

Until now, Thailand and Indonesia have accounted for the main volume of imported CBUs. Most cars sold in Vietnam are foreign brands assembled in the country from kits.

But a series of free trade agreements have reduced import duties and are opening up the market. A 30 percent import tax on cars from other Association of Southeast Asian Nations (ASEAN) countries was scrapped this year.

Besides Thailand and Indonesia, Vietnam has imported cars from China, Germany, Slovakia, Hungary, Spain, and few other countries this year.