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This is the first time the instability of the strategic policies of automobiles launched discussed at the Conference of Donors for Vietnam.

Short-term concerns
 
Conference of donors for Vietnam (CG) takes place annually, but this year, the first group of the Automotive Industry Working Group, motorcycles was established at the business forum to gather petitions and reports CG.
 
According to the Working Group, the automotive vehicles industry often seen as a symbol of the development of a country. In addition to providing support and transportation for the citizens, the automotive vehicle industry also plays an important role in improving the overall efficiency of the supply chain in economic growth and trade. In Vietnam, this sector contributes about 3-5% of GDP, much lower than 10% of the countries neighboring Thailand.
 
However, the year 2012 witnessed the extraordinary decline, estimated to 40-50% of Vietnam's automobile market which is the main cause for the drop in resonance with the economic policy changes tax charge tightening towards the purchase of new cars. During a recent visit to Vietnam, President Ford Asia-Pacific Joe Henrich also expressed surprise about the decline of the automotive market in the context of the automobile in the world market, especially in the area of countries rose by a record.
 
In addition, the continuously changing and often strong on taxes, especially VAT, special consumption tax and registration fee has to interrupt the chain of production, supply chain and retail operations manufacturers of automobiles, motorcycles for creating the ups and downs of the market demand. Besides, there is the difference in registration fees between Hanoi and Ho Chi Minh Cities. Ho Chi Minh City (15%) and Hanoi (20%) led to sales in the city. Ho Chi Minh car sales exaggerated and in Hanoi decline because the company has offices in both cities tend to register their vehicles in Ho Chi Minh City - or preferably in Binh Duong instead of Hanoi.
 
Working Group said that a roadmap for tax and other policies in the automotive vehicle industry 2025 will benefit the industry, customers and the nation in general. In the short term, should fix fee rates for plates and registration fees in the whole country ...

Long-term concerns
 
Vietnam has a population of about 90 million and will rise to 100 million within 10 years. GDP per capita is about $ 1,200 and is estimated to increase to $ 4,000 in 2020. GDP per capita and population increase will affect the habits and buying a car, especially when the rate of the current car is 2 passenger car per 1000 population. Proven fact, the growth in other countries has led to the routine use of automobiles, motorcycles, thereby leading to the growth of automobile, motorbikes industry. Vietnam locates at strategic location and this is the strength needed leverage to put Vietnam on supply chain integration in ASEAN and Asia, as well as the development of production planning.
 
According to commit to reducing tariffs when Vietnam joined AFTA (ASEAN Free Trade Area) agreement, Vietnam will have to reduce import tariffs to 0% from 2018 onwards for all types of vehicles produced in ASEAN as well as compliance regulations on minimum levels of production from ASEAN products.
 
However, now that a current difficulty is the lack of clarity in the Government's plans to promote, support the field of manufacture and assembly of components in the automotive industry (CKD) is now in Vietnam after the year 2018. Thus, international investors still can not move anything but wait and monitor policies of Vietnam. Working Group proposed that the government set up, share and announced plans to specific tax policy as planned for 10 years period.
 
Along with that, the orientation of strategic means of Viet Nam after many years still only in draft is not complete. So, now suggests that the government consider developing small cars to facilitate moving away from motorcycles to automobiles; compact delivery van is not restricted to the inner city... In addition, the issue of infrastructure development, priority on the development of clean environment vehicle ... also now report to the Assembly CG.

(source: vnmedia)