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 2024 will be approximately US$476.3 billion, a year-on-year increase of approximately 7.1%, and the per capita GDP will be approximately US$4700. According to statistics from China Customs, bilateral trade between China and Vietnam will develop rapidly in 2024. China will continue to become Vietnam's largest trading partner, with a trade import and export volume of approximately US$260.65 billion, accounting for more than 25% of Vietnam's total trade. The bilateral trade volume between China and Vietnam has exceeded US$200 billion for three consecutive years. Among them, China's exports to Vietnam were US$161.89 billion, a year-on-year increase of 17.7%. China's imports to Vietnam are US$98.76 billion, an increase of 7.2% from 2023. In recent years, despite the sluggish global trade situation, Vietnam's imports and exports to China have still grown strongly. China continues to be Vietnam's largest supplier of production materials and its largest trading partner. The Ministry of Industry and Trade of Vietnam said that based on bilateral cooperation agreements and multilateral trade agreements such as the China-ASEAN Free Trade Agreement (ACFTA) and the Regional Comprehensive Economic Partnership (RCEP), there is still much room for growth in trade between Vietnam and China. Most of the goods imported by Vietnam and China are necessities, including machinery, equipment, tools, parts and raw materials for domestic production and export.

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

2. Automobile market situation

Vietnam is a left-hand driving country, with approximately 23 cars per 1,000 people. According to statistics from the Vietnam Automobile Manufacturers Association, in 2024, automobile sales in Vietnam will be 295979 units, a year-on-year decrease of 1.9%. Among them, passenger car sales were 220295 units, a year-on-year decrease of 4.5%, commercial vehicle sales were 57034 units, a year-on-year decrease of 17.4%, and special vehicle sales were 1036 units, a year-on-year decrease of 53%. Sales in the three major automobile segments all declined.

According to statistics from the General Administration of Customs of Vietnam, in 2024, Vietnam imported a total of 174,000 complete vehicles, with an import value of US$3.62 billion. The import volume and import volume increased by 45.8% and 27.6% respectively year-on-year. According to data from China Automotive Industry Information Network, in 2024, China exported a total of 74520 complete vehicles to Vietnam, a year-on-year increase of 51.6%, accounting for 42% of Vietnam's total automobile imports. The export value is approximately US$1.398 billion, a year-on-year increase of 71.5%.

2018-2024 New car sales in Vietnam in

Data sources: Vietnam Automobile Manufacturers Association (VAMA) and ASEAN Automotive Federation

3. Policies and regulations on used car import

1. Import policy

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

(2)The import of cars over 5 years old is prohibited.

(3)It is prohibited to import second-hand vehicle ambulances, full-right-hand rudder vehicles or full-piece (CKD) vehicles, and right-hand rudder vehicles (right-hand rudder vehicles used in a small area, 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 golf course and park sightseeing vehicles).

(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

According to the ASEAN Trade in Goods Agreement, Vietnam will implement a zero tariff rate on original cars imported from ASEAN countries starting from 2018. At the same time, in order to prevent the dumping and proliferation of used cars, the Vietnam government announced that starting from January 2018, it will increase import tariffs on used cars imported from other countries except ASEAN, as follows:

(1)For vehicles with less than 9 seats with a displacement of less than 1.0L, the fixed import tax per vehicle will be increased from US$5000 to US$10,000.

(2)For vehicles with less than 9 seats between 1.0L and 1.5L, multiply the taxable price of the used car by 200% or 150%, plus a fixed tariff of US$10,000 to US$15,000.

(3)A special consumption tax of 35%-150% is levied on passenger cars with less than 9 seats based on displacement, 15% is levied on passenger cars with 10-15 seats, and 10% is levied on passenger cars with 16 -23 seats. Certain discounts will be given to hybrid cars and environmentally friendly vehicles. The consumption tax on commercial vehicles, two-wheeled and three-wheeled vehicles is zero.

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: "China's Used Car Export Country Guide 2024"

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