TRIP Steel for Automobile Industry in Vietnam



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Submitted Mar 16, 2019
Published Mar 26, 2019
10.24018/ejeng.2019.4.3.1212

Abstract viewed = 686 times

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When Vietnam joined the World Trade Organization (WTO), we made a non-discriminatory commitment between home-made goods and imported goods, so the great protection of domestic manufacturing enterprises is not can exist. Special consumption tax is only a historical period and will have to be adjusted, as this time transport infrastructure is still poor, people's living standards are not high. Particularly for domestically produced cars, it is not much affected by import tax, but still subject to SCT by the number of seats and cylinder capacity in accordance with the Law on Special Consumption Tax. As for value added tax (VAT), we should not mention much because most consumer products in Vietnam apply a VAT rate of 10%. The application of tariffs aims to encourage businesses to increase localization rates, and at the same time develop the automobile industry, aiming at export. Therefore, businesses need to try to save production and business costs, properly account market price. Vietnamese consumers are still "expecting" after 2018 to buy cheap cars because the import tax on complete cars will be reduced to 0%. However, in contrast, some comments also suggest that at that time most of the domestic car manufacturers and assemblers will turn into importers.

Keywords: Automobile Industry TRIP Low Carbon Steel

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