The economic growth forecast for 2007 in Vietnam is 8.5% and the industrial sector growth rate will reach approximately 10%.
In the period 2005-2010, the estimated average increase of motor vehicles in Vietnam is 16% per year; it is expected to be 8% per year in the period 2011-2020. The current rate of growth in the motorbike sector is around 20-30% and this rate would be maintained for 5 to 10 years to come.
The Institute for Industry Policy and Strategy (IPS) under the Ministry of Industry and Trade has said that by 2010 Vietnam would see 25 million motorbikes in circulation. The figures will increase to 31 million by 2015 and 35 million by 2020, which means that the number of motorbikes will be be double the current number.
The Ministry of Industry in its development project for supporting industries from now to the year 2010 and projections to the year 2020 classifies the supporting industries for manufacturing and assembling automobiles in one of five industrial groups which have been given top priority. The focus on developing product groups includes cabin, chassis, body, suspension system, engine, axles, cardan-joint, gear-box, steering systems for trucks, coach and special purpose vehicles, and on selected types of engine, gear box, drive train and parts in large quantities to serve both local vehicle assembly demand and exports.
The import tax rate for brand-new CBU cars has been lowered to 60% according to Decision No. 85/2007/QD-BTC of Ministry of Finance dated 22 October 2007. To comply with WTO commitments (from 11 January 2007), Vietnam plans to reduce the CBU car taxation from 90% to the levels of 47%, 52%, 58% and 70% (according to types of displacement) within the next 7-12 years. |
