Vietnam Car, Auto Component Imports Hit US$2.94B in 2009

Vietnam is estimated to have spent US$2.943 billion importing cars and auto components this year, soaring 2.6% against last year, the government’s General Statistics Office (GSO) reports.

Of the value, imports of cars under the mode of complete built unit (CBU) made up for US$1.17 billion, the highest ever auto import turnover so far.

The number of imported CBU cars has been increasing steadily over the last few years. In 2007, only 28,000 cars were imported at US$500 million, while the figure rose to 50,400 cars in 2008 at US$1 billion, and then to 76,300 cars in 2009.

Auto imports had increased since early February, when the Government announced the 50% value added tax (VAT) decrease, and more imports had arrived since May 1 when the 50% reduction in car ownership registration tax was approved.

Car imports have increased most sharply since August. November witnessed the highest volume of cars imported in 2009, with importers spending US$159 million to import 11,500 CBU cars

The imports decreased sharply in December, simply because importers anticipate lower purchasing power next year, when tax incentives are removed. Only 7,000 cars were imported, valued at US$98 million.

Imports have reflected the real situation of Vietnam’s car market and the impact of the tax policies. The imports sold on a massive scale in October and November, when people rushed to purchase cars before the tax incentives end.

Vietnam has recently welcomed a lot of well-known brand names such as the U.S. Chrysler and Germany Volkswagen.

Analysts earlier said that the demand stimulus package has caused the sharp increase of 49.4% in quantity and 12.6% in import turnover of luxury items in comparison with 2008.