Posts Tagged ‘Vietnam’

Vietnam Plays with Tariff Rates, Business Confidence Drops

May 27, 2008

Within the last 16 months, the Vietnamese Government has changed the tariff rate for importing vehicle 5 times.

The current rate of 83% – effective since April 22nd – was particularly effective at dropping business confidence given that it was put into effect on a one day notice. All previous agreements were charged the new rate despite the fact they were made well before anyone new of the new rate.

Luckily for importers and exporters alike, Vietnam not to long ago joined the WTO which put a ceiling on how much the tariff rate can go up. So importers shouldn’t expect more raise unless Vietnam plans to violate their WTO agreement.

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Vietnamese Prime Minister Goes After Car Imports

April 7, 2008

The Prime Minister of Vietnam, Nguyen Tan Dung, asked the Vietnamese Ministries of Finance and Industry & Trade to use technical barriers and tariffs to restrict imports of automobiles and automobile components for less than 12-seat cars. Besides the raising of Import Tax done last month, both automobile and automobile components are now on the list of “import-restricted” items.

Attempting to reverse the ever growing trade deficit, the Prime Minister asked that imported goods be classified into three categories: essential, controlled, and restricted. All goods categorized in the controlled and restricted groups will face extra difficulties now.

These technical barriers and tariffs that will be applied include: the raising of import tax rates; limiting the access of importers to foreign currency loans; using technical barriers, etc. Japanese used car exporters should expect a slow down on cars exported to Vietnam when these blockades start coming into effect.

Import Tax Upped In Vietnam

March 18, 2008

Vietnamese Government have decided to raise import taxes for both new and used car imports by 10%. The new rates come into effect at the beginning of April.

After a few years of lowering import taxes to keep vehicle prices down, this year marks yet another change in policy. The government claims they want to restrict the amount of cars being imported and bought to slow down the amount of traffic increases. Traffic jams are at all time intensities, and they feel reducing imports will fix this problem. The real problem is poor urban planning for the only two cities that have real traffic problems: Hanoi, the capitol in the north, and Ho Chi Minh in the south.

Another problem is arising for many importers, not just in Vietnam, but globally. Many countries, like Vietnam, trade in US Dollars. The problem is the value is sinking like a rock and importer who have to wait a month for their consignments to arrive are having a difficult time making profit. I don’t know how longer countries will continue to use the US Dollar, but trade can sure use a switch.

For some more information on import used cars to Vietnam, visit:
Japanese Used Car Exporting.info – Import Help for Vietnam