Informa

07-10/7/2021

S.E.C.C

District 7, HCMC, Vietnam

 

 

Government reduces taxes on car parts to support domestic automotive industry

Government reduces taxes on car parts to support domestic automotive industry

According to Mr. Luu Manh Tuong, Deputy Director of the General Department of Vietnam Customs, to support the domestic automobile industry to replace imported automobiles and step by step head to export, the Government has had preferential policies for automobile manufacturers that meet the conditions on production and assembly. Accordingly, automobile manufacturers will receive a zero-percent import tax on imported car parts that domestic manufacturers cannot produce.

automobile industry, automobile manufacturers, car parts, import tariff, tax incentives, General Department of Vietnam Customs, automobile manufacturing, imported car parts

Recently, the Government has continued to issue Decree No.57/2020/ND-CP, which not only brings import tax on auto parts that cannot be produced domestically to zero percent but also requires low output for the first two preference periods. According to Mr. Tuong, this is a key factor that helps many manufacturers to have more opportunities to invest in projects of production and assembly lines, aiming at the strong development of the automobile supporting industry in Vietnam in the upcoming time.

Data from the General Department of Vietnam Customs show that from the beginning of this year to October 15, the country imported 73,685 cars of all kinds with a total turnover of US$1.6 billion, and the import turnover of auto components and spare parts reached $2.86 billion. After the zero-percent tax incentive policy for automobile manufacturing and assembling enterprises was implemented, 13 enterprises received a tax refund of more than VND9.55 trillion from November 16, 2017, to December 31, 2019, and more than VND2.85 trillion from January 1 to the end of June 30 this year.

By Van Phuc – Translated by Gia Bao Vietnamexplorer

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