The country spent more than 1 billion USD on importing 55,000 newcars in 2011, despite economic difficulties, estimated the GeneralStatistics Office (GSO).
The figures were up 2.1 percent in volume and 4.2 percent in value against the previous year.
The last month of the year saw 4,000 units worth 64 million USDimported, up on the previous month when 3,000 units totalling 52 millionUSD were bought into the country.
The GSO said that thecar market was quieter than in previous years and the usual surge insales ahead of the Lunar New Year had was.
Industryinsiders said that 2011 has been a tough year because the Governmentissued a series of measures and increased tax on imported cars in a moveto restrict imports and curb the national trade deficit.
They added that the tax hike has added thousands of dollars to the cost of each imported car, leading to the year-end slump.
In June, the General Department of Customs set higher minimum taxbrackets for hundreds of imported car models. Tax on both new and usedcars rose between 2 and 20 percent compared to the end of 2010.
In the same month, the Ministry of Industry and Trade issued Circular20 which required automobile importers to fulfil extensive procedures totrade vehicles with under 10 seats. These restrictive proceduresincluded a letter of attorney from manufacturers, contracts legalised byVietnamese diplomatic offices overseas and auto maintenancecertificates granted by the Ministry of Transport.
Importtaxes on used cars have also been raised since August. Under the newregulations, used cars with engines of 1.5 litres or more are subject tothe same tax rates as new cars of the same model, which range between77 percent and 83 percent of their total value. An additional 5,000 USDto 15,000 USD levy is also imposed on used cars, depending on theirengine capacity. Previously, used cars were only subject to a fixedimport duty, starting at 3,500 USD per car. /.
The figures were up 2.1 percent in volume and 4.2 percent in value against the previous year.
The last month of the year saw 4,000 units worth 64 million USDimported, up on the previous month when 3,000 units totalling 52 millionUSD were bought into the country.
The GSO said that thecar market was quieter than in previous years and the usual surge insales ahead of the Lunar New Year had was.
Industryinsiders said that 2011 has been a tough year because the Governmentissued a series of measures and increased tax on imported cars in a moveto restrict imports and curb the national trade deficit.
They added that the tax hike has added thousands of dollars to the cost of each imported car, leading to the year-end slump.
In June, the General Department of Customs set higher minimum taxbrackets for hundreds of imported car models. Tax on both new and usedcars rose between 2 and 20 percent compared to the end of 2010.
In the same month, the Ministry of Industry and Trade issued Circular20 which required automobile importers to fulfil extensive procedures totrade vehicles with under 10 seats. These restrictive proceduresincluded a letter of attorney from manufacturers, contracts legalised byVietnamese diplomatic offices overseas and auto maintenancecertificates granted by the Ministry of Transport.
Importtaxes on used cars have also been raised since August. Under the newregulations, used cars with engines of 1.5 litres or more are subject tothe same tax rates as new cars of the same model, which range between77 percent and 83 percent of their total value. An additional 5,000 USDto 15,000 USD levy is also imposed on used cars, depending on theirengine capacity. Previously, used cars were only subject to a fixedimport duty, starting at 3,500 USD per car. /.
