Cars from Thailand zoom into Vietnam

Created 11 July 2018
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The number of cars imported last month marked a 45.6 percent increase over April this year, according to the General Department of Vietnam Customs.

Cars from Thailand zoom into Vietnam

 

Thai autos dominated a big surge in June imports, accounting for 87 percent or 2,917 of 3,356 completely-built-up car units (CBU) that arrived at Vietnamese ports, it said.

The average price of Thai vehicles was around VND430 million, as against the overall average of VND562 million for all the cars imported in June, carrying a total value of $82 million.

The surge followed the Ministry of Transport approving certification of environment and emission tests done in Thailand as meeting Vietnamese standards.

A new regulation, Decree 116, that took effect on January 1 this year, had caused auto exports from Thailand to Vietnam drop by 80 percent cars, the Bangkok Post had reported last month.

The decree required cars to be tested in Vietnam for conformity with national standards, and this March, the rule was amended to allow certification of tests done in the importing country.

The Nikkei Asia Review has reported that Thailand and Indonesia have started doing this, while shipments from Japan are still suspended because authorities there do not issue such certificates. However, exports of Japanese cars that are fully assembled in Thailand can resume.

Honda was the first auto brand to restart importing. Reports indicate that the Japanese automaker has imported roughly 2,000 vehicles, including its CR-V, Civic, Accord and other models.

Toyota Motors’ Hilux pickup trucks and Hiace vans made in Thailand, as well as Indonesia-made Fortuner SUVs are other vehicles to be shipped to Vietnam this year.

Mitsubishi Motors had shipped around 1,100 vehciles as of July 6, while Mazda Motors has also resumed shipments, according to Nikkei.

The Customs Department reports 123 vehicles were imported from the U.S., with an average price, not included additional taxes and fees, of more than VND770 million.

After Decree 116 took effect, auto imports dropped 76 percent year-on-year between January to June for a total of 12,380 vehicles.

The sale of new cars also dropped 13 percent year on year from February to May, Nikkei reported.

The decree was heavily criticized by industry leaders.

In February this year, Pham Anh Tuan, Head of Strategic Planning, Toyota Motor Vietnam (TMV), said that Decree 116 is not in line with international practices and have caused TMV and many companies to stop car imports.

However, during the Midterm Vietnam Business Forum 2018 held in Hanoi on July 4, Deputy Minister of Transport Nguyen Van Cong said the regulation would help safeguard the legitimate rights and interests of consumers.

Vietnam is one of the car markets in the world with great growth potential, experts have said. Car ownership in Vietnam is low at 23 vehicles per 1,000 people, while in Thailand, it is 204 vehicles per 1,000 people and the minimum rate in developed nations is 400 vehicles per 1,000 people..

 

Source: VNE

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