Vietnam to Raise Import Tax Rates to Narrow Trade Deficit

The Vietnamese Ministry of Finance has just issued a decision to hike import tax on a number of imported commodities in an effort to reduce soaring trade deficit, the Tien Phong (Pioneer) newspaper said on June 16.

 

Under the decision to be effective from June 20 this year, the ministry will raise import tariffs on cosmetic products to 36 per cent from current 30 per cent, on mobile phones and wireless facilities to 8 per cent from 5 per cent, and on auto spare parts to 29 per cent from 15 per cent.

 

Vietnam incurred a hefty trade deficit hitting US$14.4 billion between Jan and May.

 

The Asean country reportedly imported US$1.306 billion worth of automobiles and spare parts in the first five months of this year, up 292.4 per cent on-year, according to the General Statistics Office.

 

Vietnamese is estimated to spend US$755 million on cosmetic, skin care products and make ups a year.

 

Standard Chartered forecast that the Asean country’s trade deficit will likely make up 25 per cent-30 per cent of its GDP value or even rocket to US$30 billion by the end of the year given its imports are not about to reduce. (Pioneer, Youth Online)