New Barriers to Automotive Exports

The government and vehicle manufacturers will face obstacles in their efforts to boost exports. The reason is that Vietnam, as one of the export destination countries in Southeast Asia, has “acted out” by implementing trade protection.

After blocking the export of vehicles from Indonesia with a non-tariff scheme in the form of airworthiness and emission standards, Vietnam is preparing to implement a special consumption tax (STC) starting in October 2019. The regulation makes imported vehicles more expensive compared to local assemblies. Furthermore, the Vietnamese government will also release a tax reduction rule called consumer special tax. It is a tax cut for domestic assembled vehicles.