Super Cars Still Arriving Despite Measures

Despite efforts by the government of Vietnam to tighten luxury imports to fight inflation, cars worth several hundred thousand dollars are still arriving in Vietnam.

 

Analysts said that some models appeared in Vietnam just several weeks after they were introduced in foreign markets. Luxury car brand names appeared shortly in Vietnam like Rolls Royce (13 units), BMW X6, which appeared in the world&rsquos market in late April and appeared in Vietnam in early July (7 units), and Bentley (20-30 units).

 

Owner of a HCM City-based automobile salon related that he is still selling several luxury cars a month, even with the import tax being lifted to 83 per cent. A client purchased three luxury cars worth over US$300,000 and made payment in cash.

 

High demand for hi- cars in Vietnam has prompted luxury auto manufacturers like Porsche, BMW, Audi, Rolls-Royce to race to look for distributors and authorized dealers to boost sales in the Southeast Asian country, where the income per capita is less than US$1,000 per annum.

 

The analysts attributed massive arrivals of luxury cars to shortcomings in tax policies.

 

Notably, a brand new Rolls-Royce Phantom a Vietnamese businesswoman imported directly from the British manufacturer in 2008 was imposed VND13 billion in tax, one would see that the tax of US$30,000 or VND500 million on used luxury cars proves to be too low, they said.

 

The General Department of Customs said that 10,000 used cars have arrived in Vietnam in the last two years, since Vietnam allowed used imports. Luxury cars have accounted for nearly 50 per cent of the imports.

 

Analysts have also urged the government to further increase taxes in order to reduce the trade deficit. (Vietnam & World Economy)