(1) Basic situation

 The Socialist Republic of Vietnam (referred to as Vietnam) is located in Southeast Asia. It borders Guangxi and Yunnan of China in the north and Laos and Cambodia in the west. The capital, Hanoi, has a land area of approximately 332,000 square kilometers and a population of approximately 100 million. According to statistics from the Statistics Bureau of Vietnam, the GDP in 2023 will be approximately US$430 billion, a year-on-year increase of approximately 5.1%, and the per capita GDP will be approximately US$4284. According to statistics from China Customs, China will continue to become Vietnam's largest trading partner in 2023, with a trade import and export volume of approximately US$229.7 billion, accounting for more than 25% of Vietnam's total trade. Among them, China's exports to Vietnam were US$137.61 billion, a year-on-year decrease of 3.7%. China's imports to Vietnam are US$92.18 billion, an increase of 4.8% from 2022. Against the background of the global trade downturn in 2023, Vietnam's growth in exports to the China market is a bright spot. In 2023, Vietnam will have a total of 12 commodity categories with exports to China exceeding US$1 billion. Among them, there are two commodity categories with export values exceeding US$10 billion: mobile phones and parts reaching US$16.87 billion; computers, electronic products and parts reaching US$13 billion. Other commodities with exports worth billions of dollars are: cameras, video cameras and parts, fruits and vegetables, machinery, equipment, tools, etc.

 Vietnam is rich in mineral resources and diverse in species, mainly coal, iron, titanium, manganese, chromium, aluminum, tin, phosphorus, etc. Among them, coal, iron, and aluminum reserves are relatively large: there are 6845 species of marine life, including 2000 species of fish, 300 species of crabs, 300 species of shellfish, and 75 species of shrimps; the forest area is about 10 million hectares.

(2) Automobile market situation

 Vietnam is a left-hand car country, with approximately 23 cars per 1,000 people. According to statistics from the Vietnam Automobile Manufacturers Association, in 2023, Vietnam's automobile sales will be 301989 units, down 2549 year-on-year. Among them, passenger car sales will be 230706 units, down 27.0% year-on-year, commercial vehicle sales will be 69078 units, down 16.0% year-on-year, and special vehicle sales will be 2205 units, down 56% year-on-year. Sales in the three major automobile market segments have dropped sharply.

 According to statistics from the General Administration of Customs of Vietnam, in 2023, Vietnam imported a total of 119,000 vehicles, the import value! 28.3 At US$100 million, import volume and import volume fell by 31.5% and 26.3% respectively year-on-year. In 2023, the total number of complete vehicles imported by Vietnam from the three markets of Thailand, Indonesia and China will account for 90.5% of Vietnam's total national automobile imports. Among them, Vietnam imported 54,000 complete vehicles from Thailand, accounting for 45.4% of Vietnam's national automobile imports, with an import value of US$1.14 billion, accounting for 40.5% of Vietnam's total national automobile imports: Vietnam imported 43,000 complete vehicles from Indonesia, accounting for 35.9% of Vietnam's national automobile imports, with an import value of US$610 million, accounting for 21.47% of Vietnam's total automobile imports; Vietnam imported 11,000 complete vehicles from China, accounting for 9.3% of Vietnam's national automobile imports, with an import value of US$390 million, accounting for 13.9% of Vietnam's total automobile imports.

 In terms of the used car market, used cars in Vietnam are traded among individuals, with an average annual trading volume of 100,000 vehicles and an average price of about US$20,000 per vehicle. They are mainly imported through ports such as Ho Chi Minh, Quinine, and Hanoi. The most popular used car age range is 0 - 3 years. The best-selling brands are mainly Japanese and Korean brands, with Toyota occupying the largest market share, followed by Kia, Hyundai, Ford, Honda and other brands. In 2022, due to the lack of auto parts and fluctuations in exchange rates, production costs will be pushed up and new car prices will rise, further promoting an increase in demand for used cars.

(3) Policies and regulations on used car import

1. Import policy

(1) Vehicles imported from Vietnam must be in complete vehicle status.

(2) It is prohibited to import cars more than 5 years old.

(3) It is prohibited to import second-hand vehicle ambulances, right-hand rudder vehicles or complete vehicle parts (CKD) and right-hand rudder vehicles (except for right-hand rudder vehicles used in small areas, such as cranes, ditch excavators, sweaters, sprinklers, garbage trucks, special purpose vehicles such as road construction vehicles, special buses in airports, warehouse and port loading and unloading vehicles, cement filling trucks, and special vehicles for sightseeing for golf courses and parks).

(4) It is prohibited to import vehicles with modified or recast frame numbers.

(5) Imported used cars should be provided with a warranty period of 2 years or 50,000 kilometers (for private vehicles).

2. Tax policy

 On May 31, 2023, the government of Vietnam issued Decree No. 26/2023/ND-CP on export tariffs, preferential import tariffs, commodity lists and absolute tax rates, mixed taxes and import taxes beyond tariff quotas. This decree will come into effect on July 15, 2023, replacing Decree No. 122/2016/ND-CP, Decree No. 125/2017/ND-CP, Decree No. 57/2020/ND-CP, Decree No. 101/2021/ND-CP and Decree No. 51/2022/ND-CP. The decree deals with tariffs on the import of used cars, as follows:

(1) Second-hand passenger cars with 9 seats and less and a cylinder capacity of no more than 1000 cc belonging to product group 87.03 are subject to an absolute tax rate of US$10000.

(2) Used passenger cars with 9 seats or less and cylinder capacity exceeding 1000 cc in Category 87.03 and used passenger cars with 10 to 15 seats in Product Group 87.02 shall be subject to the following tax rates.

(a) For used passenger cars of 9 seats or less with a cylinder capacity exceeding 1000 cc:

(b) For used passenger cars with 10 to 15 seats:

(c) X = used car tax rate * vs. similar new car tax rate-preferential tariffs specified in the list of taxable items accompanying the bill.

(3) Second-hand passenger cars with 16 seats or more belonging to Group 87.02, second-hand motor vehicles with a designed total transport weight of no more than 5 tons belonging to Group 87.02 and used for cargo transportation, and garbage compactors belonging to Group 87.04 (excluding refrigerated trucks and garbage collection vehicles) A preferential import tax rate of 150% applies to garbage compactors, tank trucks, armored vehicles for transporting valuable goods, tank cement trucks and sludge tankers with liftable containers.

(4) The tariff rates for other used cars in the product groups in 87.02, 87.03, and 87.04 are equivalent to 1.5 times the preferential import tax rate for used cars of the same type specified in Section 1 of Appendix 2 to the Act.

3. Documents required for import

·Automobile import license·Original bill of lading (including VIN number, engine number, displacement, production date, brand and model number, etc.)

·Import and export tariff declaration form

·Vehicle registration certificate, circulation certificate and deregistration certificate issued in the exporting country

·Vehicle road suitability certification certificate or certificate

Source: "Country Guide for Used Car Exports (2023)"

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