Country leads the way in completely-built-unit exports to Vietnam in Q1.
Thailand has become the largest completely-built-unit (CBU) motor vehicle exporter to Vietnam, with 7,800 units imported in the first quarter, an increase of 64.5 per cent year-on-year, according to Vietnam Customs.
The second-largest exporter was South Korea, with 3,560 units, a decline of 41 per cent year-on-year. The largest CBU exporter last year, China, was in third place, with 2,260 units exported, a decline of 58 per cent.
In the first quarter there were 19,700 CBU vehicles imported in Vietnam, down 21.2 per cent against the first quarter of 2015. The imports cost $486 million in total, 16.8 per cent less year-on-year.
Declines in volumes were seen in most categories, except for vans. There were 9,860 vans imported, an increase of 16 per cent, and 6,900 vehicles of less than nine seats, down 37.6 per cent, while other categories totaled 3,000 units, down 45.6 per cent.
The reason Thailand performed so well is the tax incentives detailed in the ASEAN Trade in Goods Agreement (ATIGA), under which automotive import taxes were cut from 50 per cent to 40 per cent this year and 30 per cent in 2017 and 0 per cent in 2018.
CBU imports in March reached 8,500 units, valued at $208 million, an increase of 50.8 per cent in number and 46.9 per cent in value compared to February.