In early November, the Ministry of Finance of Vietnam issued a notice stating that in order to support the development of bus and bus investment projects in Hanoi and Ho Chi Minh City, from December 14 onwards, import duty was levied on parts and components that were required for production and assembly of bus buses and that could not be produced domestically. However, when bus companies in the country that are interested in exploring the Vietnamese market or having worked for many years in the Vietnamese market are encouraged by this news, they recently received a message from the Ministry of Finance of the People's Republic of China (MOF) to local tax authorities on how to guide the collection of the license plate fees for transport vehicles. It's hard to be happy again. Hydraulic Adapter,Hydraulic Hose Connector,Hydraulic Adaptor Fittings,Hydraulic Fittings And Adapters Ningbo Xintai Industry and Trade Co., Ltd. , https://www.nb-xintai.com
It is understood that the license plate fee will be determined based on the "Technical Safety Quality and Environmental Protection Certification" issued by the inspection authorities. Vehicles produced and assembled domestically will be collected based on the technical safety, quality and environmental certifications of production and assembly, and imported vehicles will be levied according to the technical safety, quality and environmental protection certifications of imported motor vehicles. If the certification is confirmed as a truck, a 2% fee will be levied. If the certificate is not a truck, the bus will be charged 10% to 20%.
The New Deal has little effect
“Large orders from Vietnam appear to have been few in the past two years. The Vietnamese market is still in its early stages of development. Many aspects are not standardized. It should be said that the export risks are high, and Vietnam has a certain degree of resistance in different forms, so it is not China’s passenger car. The main exporting country of the company,†said Lou Zhenqing, deputy secretary-general of the Bus Division of the China Highway Society. He also said: “Vietnam does not have its own passenger car manufacturing company, but mainly assembly.â€
The first response of Xie Weiguo, the overseas marketing director of Daikin Dragon, to the new policy of license plate fee is the increase in cost. He said: “Whether it is the cost of certification or other fees levied, it will ultimately be borne by manufacturers and end users. Vietnam This move will certainly inhibit its terminal demand for passenger cars." It is understood that Vietnam had previously been one of the major export markets for Daikin Dragon, but it has gradually become a general market in recent years. In the past, most of the passengers were exported by road buses (such as sleeper buses). This year, buses have a certain amount of exports.
“China’s passenger car products have a high degree of acceptance in Vietnam, which can be described as high quality and low price. However, the road conditions in Vietnam are not very good. The roads are narrow and the mileage is limited. This is why motorcycles can become the most important traffic in this country. The main reason for one of the tools.†Xie Weiguo further stated that the construction of infrastructure cannot keep up, and passenger car demand will be difficult to develop.
It is understood that at present, the development level of the passenger car market in Vietnam is lower than that of China, and the demand for vehicles is also mainly economic or medium-end. In China, it is regarded as a mid-end model, and in Vietnam, it is equivalent to a high-end car.
“Some of Vietnam’s policies are not very stable. Tariffs are high and low, and they have certain business risks. Therefore, most companies are taking a positive attitude and watching.†Xie Weiguo added.
“The sales of Zhongtong Bus in the Vietnamese market began as early as 2003. However, based on the characteristics of the Vietnamese market, it has been irreconcilable, scattered, and very few. Therefore, even if there are some changes in policies and regulations, The overall export work of the company has not been affected much. We have completed the export of more than 1,500 vehicles this year, and sales in Southeast Asia, the Middle East, Africa, Latin America, and Central and South America are still good.†Zhongtong Bus Overseas Market staff told reporters: “ For a developing country like Vietnam, it is normal to add some certifications, after all, the market is in the process of maturing gradually, and the missing ones will gradually be added, but some new certifications in some countries or regions are not ruled out. There is a tendency to resist imported products in disguised form."
Since the work on Vietnam's license plate fees and related certifications has not yet been carried out, the staff used Russia as an example to illustrate the increased costs of certification: "For export to Russia, the certification cost for a vehicle model is equivalent to the 50 vehicles sold. â€
"Vietnam will be the company's major market next year, and this policy that is being introduced will have some impact on sales and strategy, but it is expected to be not too big." The head of the overseas market of Beiqi Foton Bus Branch said: "The Vietnam market It is not completely open, it is a more complex market. At the same time, the resistance from different aspects is not small."
The related personnel of the overseas market of Suzhou Jinlong Haig Bus told the reporter: “Vietnam has always required emission standards, and Vietnam’s implementation of environmental certification has little impact on the company’s overseas exports. “At present, domestic passenger car production and emission standards are in Europe III. Above, the foreign emission standards cannot be raised at once. For other markets to raise barriers to entry, the technical level of Chinese passenger cars can already fully meet the needs of these markets. Therefore, this policy in Vietnam as a whole has little effect on the export of Chinese passenger car manufacturers. "The relevant person said.
China's passenger cars have obvious advantages
“Bus is a production tool, and customers buy it for the purpose of pursuing returns and generating profits. Although Chinese buses are not considered brand names at the beginning of entering the Vietnam market, they are not far from the Japanese passenger cars in terms of quality and technology, and their prices are only comparable. Half of the buses in Japan.Vietnam operators who buy Chinese buses can solicit passengers at relatively low fares and still obtain considerable profits."A senior person familiar with the Vietnamese market said: "Vietnam is a developing country, working-class people With many poor people, low fares are very attractive to most of the passengers.The first batch of operators in Vietnam that chose Chinese buses have made a fortune. They have not only become loyal users of passenger cars in China, but also among operators. Passing 10 and 10 transmissions has enabled more and more Vietnamese operators to choose passenger cars in China. The number of passenger cars exported to the Vietnamese market has increased significantly."
According to statistics, in 2006, the sales volume of Jinlong Bus in the Vietnam market reached 80% of the total number of passenger cars imported from Vietnam. At the same time, the share of other world-famous brand passenger cars in the passenger car market in Vietnam has slipped from 80% in 2005 to around 15%. According to reports, at the time, Jinlong Bus exported to the Vietnamese market through cooperation with local auto assembly companies in Vietnam for CKD. This kind of cooperation has many positive aspects. For Vietnam, on the one hand, it protects the labor force of its national industry; on the other hand, the relatively high-end quality and technology of Chinese passenger cars are used to increase the overall automobile manufacturing level in Vietnam and change the low price in Vietnam. The situation of the car is of great benefit. In addition, locally produced parts can also reduce tariffs, while also saving on cross-border freight rates, thereby effectively reducing costs.
November 18, 2023