Vietnamese companies are fast losing their share of the hugely promising motorbike market, which sells about three million bikes every year, to foreign-invested enterprises (FIEs).
Completely-built-up (CBU) car imports plunged in the first half of July due to the impact of restrictive measures imposed by the Ministry of Industry and Trade.
The Ministry of Finance has ruled that cars bearing diplomatic plates owned by non-diplomats has to pay back overdue taxes in arrears, Nguoi Lao Dong reported.
Several auto importers have voiced their objection to Circular 20 issued by the Ministry of Industry and Trade to restrict imports of completely built-up cars, saying the new rules go against the Enterprise Law.
Quang Nam provincial authorities feel elated with the idea of setting up a national automobile center, while considering applying huge incentives to investors. Meanwhile, the plan has not been welcomed by many automobile manufacturers.
The number of automobiles imported into Vietnam has dropped precipitously since the implementation of stricter regulations and higher taxes on auto imports, according to the General Department of Customs.
The motorcycle market has been going down given the low season, with many motorcycle dealers cutting prices or launching promotions to attract customers.
Car importers face an imminent threat of closing down their businesses, with the implementation of new stricter regulations on car imports, increase in import tariffs on used cars and the expected 20 percent rise in registration tax by August.