News Room - Business/Economics

Posted on 07 Jul 2009

Auto imports put drag on trade balance

Despite a decrease in import turnover, auto imports remain burdensome to Viet Nam’s trade balance as the country still faced a trade deficit of US$2.1 billion in the first six months of 2009.

 

According to a report released by the Viet Nam Statistics Bureau on June 29, in June alone Viet Nam imported 6,000 units of autos worth US$90 million, an increase of 1,200 in volume and $10 million in value, compared to May’s figures.

 

The report says this is the fourth consecutive month in which an increase in automobile imports occurred.

 

In the past few months, Viet Nam has also seen a lot of luxury cars of different brand names, including Porsche, Cadillac, Rolls Royce Phantom and Bentley, brought into the country by air.

 

Meanwhile, a well-known car importer in HCM City is claiming that many luxury cars which have been imported recently by air are used cars. Buyers must pay $4,000 to $10,000 to bring a car to Viet Nam by air.

 

In face of the global downturn, total automobile imports into Viet Nam in the first half of 2009 reportedly dropped 57 per cent compared with last year, to 23,100 units worth $392.2 million.

 

The report says the decrease in automobile import turnover in the first half of the year was due mainly to an increase of several taxes and fees imposed on automobiles in 2009.

 

According to figures released by the Ministry of Planning and Investment on June 24, the trade deficit of $1 billion in June brought the total trade deficit suffered by Viet Nam in the first half of the year to $2.1 billion.

 

In the first six months of 2009, the country attained an export turnover of about $27.6 billion, down by 10.1 per cent compared with the same period last year. Meanwhile, the country’s imports are estimated at $29.7 billion, a year-on-year decrease of 34 per cent.