Several policies to support development of automotive industry

The Ministry of Industry and Trade has currently proposed the Government to reduce import of equipment and auto parts used in the automobile industry.

(Illustrative photo: SGGP)

(Illustrative photo: SGGP)

Besides preference in corporate income tax and land use tax for each project, the Government has been focusing on training high-quality human resource for supporting industry of automobile industry so as to meet demand of its partners.
Currently, Vietnam has 18 FDI companies and 38 local automobile manufacturers with a capacity of 460,000 cars annually. However, localization rate of the country’s automobile industry merely reached an average of 7-10 percent, causing its cost price much higher than that of other countries in the region.
Mr. Nguyen Thanh Binh, head of the Business Information Center under the Vietnam Chamber of Commerce and Industry Ho Chi Minh City Branch, said that according to the agreement to join the ASEAN Free Trade Area, import tariffs on cars from countries in the area were cut to zero percent from 50 percent.
The organizer of the third edition of Vietnam’s leading regional trade fair for the automotive service industry--Automechanika, has recently held a conference on tax policy and development strategy for Vietnam’s automobile market in Ho Chi Minh City.

By Minh Hai - Translated by Thuy Doan

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