Continuously decreasing, car prices in Vietnam are still higher than in Thailand

Car prices in Vietnam are nearly twice as high as in Thailand, and this figure is even higher when compared to countries with stable automobile industries such as the US and Japan. The biggest reason for high car prices in Vietnam is due to high taxes and fees.

According to the report of the Ministry of Industry and Trade sent to the XIV National Assembly Delegates, the domestic automobile manufacturing and assembly industry has not yet met the criteria of a real automobile manufacturing industry (mostly at the simple assembly level), the production line mainly consists of only 4 main stages: welding, painting, assembly, and inspection.

The biggest reason for high car prices is our country's high taxes and fees.

Car prices remain high compared to other countries in the region. Car prices in Vietnam are nearly twice as high as in other countries in the region (Thailand and Indonesia), and this figure is even higher compared to countries with stable automobile industries such as the US and Japan.

The Ministry pointed out that the biggest reason for high car prices is due to high taxes and fees in our country, and low domestic accumulated output (enterprises are producing far below their designed capacity). Although the quality of domestically produced and assembled cars has improved, it is still not as good as imported cars.

There has not been cooperation, association and specialization between enterprises in automobile manufacturing and assembly and spare parts production. There has not been a system of large-scale raw material suppliers and component production.

The Ministry of Industry and Trade said that for personal cars with up to 9 seats, the localization rate target was 40% in 2005, 60% in 2010, but so far it has only reached an average of about 7 - 10%, of which Thaco reached 15 - 18%, Toyota Vietnam reached 37% for the Innova line alone, lower than the target.

Localized products have very low technology content such as: inner tubes, car tires, seats, mirrors, glasses, wiring harnesses, batteries, plastic products... Up to 80 - 90% of main materials for manufacturing components such as alloy steel, aluminum alloy, plastic particles, high-tech rubber currently have to be imported,...

To encourage the domestic automobile manufacturing industry, the Ministry of Industry and Trade is researching and applying anti-trade fraud measures to limit the import of completely built-up automobiles due to low customs declarations, causing adverse impacts on domestic production.

Promote the development of the automobile industry and supporting industries, thereby increasing the localization rate of the Vietnamese automobile industry.

According to Ho Chi Minh City Law Newspaper