Sunday, April 12, 2015

The risk of collapse of the auto industry Vietnam

The risk of collapse c & # 244; & # 244 ng industry; t & # 244;  Vietnam





Statement by the general manager of the joint venture Toyota VN consider stopped assembling cars in VN to switch to imports showed a collapse of the auto industry became a reality.

This risk not only from the automotive business but also from consumers.

After a long time to learn, test drive the cars traveling in seats by domestic enterprises assembly, he VT (Cau Giay District, Hanoi) has decided to buy a Mitsubishi Attrage CVT (five seats) imports from Thailand with a total of over 600 million.

Vehicles entering more convenience

"Test the little domestic production of some friends, I feel this exotic car more comfortable and more spacious for utilities such as DVD players touch, leather seats, push-button start, the key Smart, fuel economy ... while the price is quite soft "- he VT analysis.

Recent foreign cars pulled by a large number of consumers choose to buy for that better quality domestic production car. Number of car manufacturers and automobile assembly VN imported from Thailand put on sale VN is increasing because of the tax advantages and import many kinds.

Forecasts of market trends and changes in the import tariffs, from over a year ago now some automobile manufacturers have started moving away from the assembly to import.

Present at the office of the joint venture Vinastar (VSM, Hiep Binh Chanh Ward, Thu Duc District, Ho Chi Minh City), a joint venture specializing in the production of Mitsubishi vehicles, in early May 4-2015, we observed find parking around 200 imported cars. In which there are very few cars imported Pajero Sport by VSM components of the assembly.

Talking to Youth, Mr. Kazuhiro Yamana, VSM general manager, said the other areas hour workshop focuses only single assembly Pajero Sport cars with a capacity of about 100 units / month. The heyday of VSM average month assembly plants than 410 vehicles, but this business strategies change, the number of workers and thus decrease.

In fiscal year 2014 (from January to May 3-2015 4-2014), VSM sold 2,530 vehicles, including 1,660 vehicles imported from Thailand and Japan.

"But only about 80% of the target (3,000 vehicles) that we put out, but that number grew 59% compared with the previous fiscal year" - he Yamana share.

VSM is a member of the Association of Automobile Manufacturers VN (VAMA) ratio CBU cars from foreign sales and distribution in VN most to enjoy the advantages of import tax.

"Our goal is to calculate how: CBU import or import of components to assemble in water to price the car sold to consumers VN lowest. Due to various reasons, the year we imported cars sold in VN if mounted on domestic prices will be much higher, "- he Yamana said.

Earlier, speaking at a meeting early May 4-2015, general manager of Toyota Motor VN (TMV) Maruta said Yoshihisa TMV are at a crossroads: import or continue production while only less than three years CBU import tax from Southeast Asian countries fell by 0%, while VAMA unknown government policies to support what the car can now put effort focused on producing a automotive supply line for the domestic market.
The price of a seat in the car imported from Thailand after plus tax and fees (assuming registration tax, excise tax, VAT and fees do not change this car) Photo: WIN APPROVAL - Graphics: V.CUONG




The price of a seat in the car imported from Thailand after plus tax and fees (assuming registration tax, excise tax, VAT and fees do not change this car) - Photo: Easy Win - Graphics : V.Cuong

Production of high water

According to calculations by the automobile manufacturers, auto VN rates 2.5 times higher than the sales price in the countries in the ASEAN region. The Outlander Sport CVT by VSM imports from Japan (70% import tax) to consumers VN price is 870 million.

The reason why price of domestically produced cars too high to reduce the competitiveness of locally assembled cars than imported cars, according to Yamana, is the calculation of excise tax too "weird".

Excise tax for CBU cars is the CIF price inclusive of freight and insurance costs, while locally assembled vehicles, excise tax calculated based on the selling price to the dealer, this price consists of business profits, freight from the place of production to the agent and some other expenses such as advertising ...

"This methodology car prices domestically produced and imported CBU vehicles equivalent to a difference of at least 5%" - he Yamana analysis.

Recommendation reduction components

On the sidelines of the Workshop on "Assessing the impact of capital foreign direct investment (FDI) to the economy VN" held May 9-4 in Hanoi, Mr. Nguyen Mai, chairman of the Association of Enterprises with foreign investment capital in addition, recommends lowering import tariffs.

"Because if not lower import duty components, surely the time to not only Toyota, but many other cars will now turn to imported cars rather foolish imported car parts for assembly, production in the country. By CBU import tax imposed 0% while imported components for assembly of production must pay taxes "- he said Commerce.

According to Commerce, whether strategic deployment cars since 1991, but so far every year VN produced only 120,000 units and are still mostly imported components, not to mention imported CBU cars.

Meanwhile, also deployed strategic cars from 1990, but in recent years the Thai produce an average of about 2.5 million units / year, which exported 1.45 million units / year. Thus, according to Commerce, it can be said to date development strategies of VN auto industry has failed completely.

Talking to Youth, a leader of the Ministry of Finance said in cooperation with the Ministry of Industry and Trade Research to provide a solution, user administration is going to reduce import duty components, auto parts imports xuong.Le bar