Import taxes on automobiles from the EU and Japan may be fully removed within the next decade under the EVFTA and the TPP.
Import taxes on automobiles from the UK, Germany, and Italy are to fall to zero per cent within ten years of the day the EU Vietnam Free Trade Agreement (EVFTA) was signed.
Tax authorities in Vietnam have committed to removing import taxes one year prior to that deadline, while import taxes on motorbikes with engines larger than 150cc will be exempt from import taxes after only seven years.
Vietnam may therefore see more Audi, BMW, and Porsche from Germany, Bentley and Range Rover from the UK, and Ferrari from Italy on its streets in the next two decades.
With the Trans-Pacific Partnership (TPP) in the final stages of negotiations, import taxes on automobile coming from Japan to Vietnam may also be cut in the next ten to 20 years, according to Japan’s Mainichi Shimbun newspaper, which has credible sources within Japan’s TPP negotiating team.
Deputy Minister of Industry and Trade and Head of Vietnam’s TPP negotiating delegation, Mr. Tran Quoc Khanh, confirmed that exempting automobile import taxes is a major issue in the bilateral TPP negotiations with Japan but declined to comment on the Mainichi Shimbun report.
Many Vietnamese people like Japanese motor car for their affordable price, durability, and the availability of spare parts, but most Japanese cars in Vietnam at the moment have been assembled in Vietnam or Thailand.
If the Mainichi Shimbun report is accurate then Vietnamese motor car buyers will find it even more affordable to enjoy driving “Made in Japan” Toyota, Lexus, and Mazda motor cars.
No information has been forthcoming as yet on whether US motor cars such as Chevrolet and Ford will also be subject to similar tax relief.