Posts Tagged ‘WTO’

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.