Buzz
Cars are increasingly becoming a popular mode of transportation on the streets of Vietnam. Higher incomes, coupled with improved road conditions and favorable tax policies, are making car prices more affordable for consumers.
However, apart from domestically assembled foreign brands, imported cars continue to be favored due to the excellent quality they offer, as well as the consumer preference for foreign goods.
Among imported car models, which country offers the cheapest cars?
According to data from the General Department of Customs, in September 2018, the cheapest imported cars were recorded from two countries:
- Imported cars from Indonesia: averaging $16,500 per car - equivalent to 379 million VND per car
- Imported cars from Thailand: averaging $20,500 per car - equivalent to 471 million VND per car
Most cars imported from these countries are from Toyota, Hyundai, Mazda, Honda... mostly with engine capacities below 2.0L. In 2018, special consumption tax for these models was reduced to about 30%. Additionally, under the AFTA agreement, import taxes on cars from ASEAN countries into Vietnam are reduced to 0%. Shipping costs from Thailand and Indonesia to Vietnam are also cheaper than those from Europe or Japan, hence overall bringing the lowest prices for consumers.
As a result, Thailand and Indonesia rank first and second respectively in the list of countries importing the most cars to Vietnam (with 7588 and 3056 cars respectively in September 2018).
In the future, if the Vietnam-EU Free Trade Agreement (EVFTA) - currently under negotiation and potentially to be signed by the end of 2018, early 2019 - import taxes on cars from European countries (Germany, France, etc.) will also see price reductions for cars imported from these countries (brands like Peugeot, Mercedes,...).
Overall, car prices in the future, specifically from 2019 onwards, will be at their lowest compared to before. So if you're planning to buy a car, start saving now!
>>> Visit the latest car prices today to stay updated on current car prices.
