ASEAN imports benefit from tax cuts

The new policy is expected to create more favourable conditions for ASEAN countries to compete with other countries from Asia.

According to the General Department of Customs, import turnover of ASEAN countries in Vietnam has surged significantly in the first quarter. Cars imported from Thailand and Indonesia have surpassed imports from Korea and China to become the popular choices with Vietnamese consumers.

"Due to market demand and tax on certain goods, turnover of imports from ASEAN countries have sharply increased. For example, car imports reached 152 million US dollars, up 87.6% compared to the same period of last year." - Nguyen Quang Son, Head, Foreign Trade Department, General Department of Customs.

The roadmap for tariff reductions under the framework of the ASEAN Trade in Goods Agreement has been affecting cars imports since tax rates have been cut. Tax rate for cars imported from ASEAN decreased by 10% compared to last year, which also affected consumer choices. 

"Taxes on imported cars in the ASEAN region have been falling. So I’m thinking about buying a car from an ASEAN country." - Duong Tung Lan, Resident, Hai Ba Trung District, Hanoi.