The prices of imported cars have significantly increased with the excise tax. For example, the price of an imported 2016 Ford Everest model increased by more than 14,000 USD, up 25% compared to the estimated price in 2014. Customers who put a deposit down for new cars last year now could be having second thoughts.
However, the new calculation isn’t affecting locally-assembled cars. Prices from many car manufacturers in Vietnam have remained unchanged compared to last year. This has given local manufacturers significant advantages.
Excise taxes are expected to be a useful tool to monitor Vietnam’s auto market in the coming years, as Vietnam is reducing tariffs as part of its international trade commitments.
