Saturday, August 24

Will reduce the domestic production of automobile components

At the 6-month preliminary meeting on the automobile import situation held afternoon 6-8, Mr. Do Thang Hai-deputy minister of Industry and Trade-said that the policy relating to automobile is the decree 116 has a great impact on the automotive industry , which makes the industry the first time to have Vietnam automobile brand, create market capacity and reduce car prices.

In the coming time, according to Mr. Hai, the Ministry of Industry and Trade will propose to reduce taxes with domestic components to promote the development of supporting industry, creating the foundation for the development of the domestic automobile production sector , especially electric cars, electric cars.

Also at the meeting, Mr. Phan van Chinh-director of the Import and Export Bureau (Ministry of Industry and Trade)-said this agency will coordinate with the ministries of competent departments to bring new policies, support focus to accelerate large projects on production , automobile assembly of large enterprises, attracting investments from multinational corporations on large-scale projects that are accompanied by transfer and Master of Technology in Vietnam.

In addition, the agency also works with the Department of Research, issued the policy on the handling margin of automobile products disposal in accordance with the Law on Environmental Protection and development of supporting industries to improve the value of automotive industry.

Amendments to the tax policies, such as special consumption tax, corporate income tax, and other government incentives and support to attract investment projects to produce electric cars (including policies for buyers).

“We will coordinate with relevant units of study to amend the use of special consumption tariff on automotive goods from 9 seats or less in the direction of non-taxing special consumption for the value of domestic creation , with the term of the policy being 5-10 years “-Mr. Chinh said.
Six months, Vietnam nearly 1.7 billion to import cars

The report at the meeting, the Import and Export Bureau (Ministry of Industry and Trade) said that in the first six months of this year, Vietnam spent nearly 1.7 billion to import cars, which increased by more than 413% over the same period 2018, not to mention more than 1.9 billion in import automotive components.

The total number of imported cars in six months was more than 75,000, up 510%, of which 54,000 were under 9 seats (up 650%).

According to this agency, it is expected that this year’s super industry is going to reach a record of over 3.4 billion USD, most of the imported vehicles can be produced in the country.

And in subsequent years, the import turnover of automobile will continue to increase the demand for increasing domestic use, severely affecting domestic automobile production and trade balance.