Monday, March 8, 2021
Home > Market information > In 2018, automobile’s price decreases, how about motorcycle’s price? (28/11)

In 2018, automobile’s price decreases, how about motorcycle’s price? (28/11)

In 2018, the average price of motorbike in Vietnam is 10 – 15% higher than other countries’ in ASEAN. On the other hand, the CEPT tax rate will be maintained the same as the current MFN tax rate (2008) until 2013 (for automobile) and 2012 (for motorbike) – the last commited time in WTO for these products. Afterwards, it will be steadily reduced to 0% in 2018, in order to maintain the protectonism until 2010 (fitted the commitment with WTO) to meet the commitment but have less effects on markets and domestic production. Thus, imported motorbikes from ASEAN will apply the tax rate of 0%, but the domestic motorbike manufacturer will be significantly impacted. At least, they have to adjust their price from 6 to 9% to prevent the effect of imported motorcycles from entering into Vietnam. At that time, brands with small proportion will face a lot of challenges and there is a possibility that some dealers have to reduce their business size, even shut down.

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