Hanoi halts purchasing of imported cars for state agencies

Hanoi’s state agencies and companies are now being forbidden from purchasing imported cars until the further instructions come down from the prime minister.

Vice Chairman of the municipal People’s Committee, Hoang Manh Hien, said the move followed the Ministry of Finance’s recent official dispatch to pause imported car procurement in an effort to curb the national trade deficit.

However, the purchase of cars that cannot be locally produced for national defense, diplomatic and other special purposes are still permitted. The city’s state agencies are allowed to buy imported cars in line with articles stipulated at international agreements on borrowing projects and foreign aid.

In this case, state agencies, which inked the automobile purchase contracts before November 30, are also permitted to buy the imported cars.

The Department for Public Assets Management under the Ministry of Finance said, by late June this year, Vietnam had over 25,660 state cars valued at a total of VND12.74 trillion (USD637 million). Hanoi and Ho Chi Minh City topped the country in the number of state cars with a combined 1,800.

According to the General Statistics Office of Vietnam, the country’s trade deficit was estimated to be at USD10.7 billion between January and November this year, accounting for 16.7% of the export value of the period.

The trade deficit in November reached USD1.3 billion, the highest level since early this year. Among 32 main imports in the month, means of transport and spare parts, including autos, saw a rise of 51.4% against the same period of last year.