The Ministry of Finance has recently submitted a proposal to the government to adjust import tax rates for certain truck lines. This move, aimed at encouraging domestic production, is attracting significant attention from the transportation business community and consumers. So, what is the specific proposal to increase import tariffs on trucks, and how will it impact the Vietnamese truck market?
According to the draft Decree amending and supplementing Decree 125/2017/ND-CP, the Ministry of Finance proposes increasing import tariffs on specialized trucks such as refrigerated trucks, garbage compactors, tank trucks, cement tanker trucks, and dump trucks with detachable bodies under 45 tons. The current tax rate of 20%, which is lower than WTO commitments, is expected to be adjusted to 25%.
This proposal comes in the context of numerous domestic businesses petitioning for an increase in import tariffs on completely built-up (CBU) trucks from 5 to under 45 tons, including dump trucks, chassis trucks, tractor trucks, and other specialized vehicles, to 40%, aligning with rates in regional countries. However, the Ministry of Finance argues that adjusting the tax rate for dump trucks is not appropriate as there is already a flexible tax rate ranging from 10% to 50% depending on tonnage and WTO commitments.
For concrete mixer trucks, another specialized vehicle in group 8705, the Ministry of Finance also proposes increasing the import tax rate to 20%. Currently, the MFN (Most Favored Nation) tariff rate is 15%, while preferential rates under free trade agreements such as ACFTA and AKFTA are 0%. The import turnover of concrete mixer trucks in 2017 reached USD 119 million, mainly from China, with a 0% ACFTA tariff rate. Increasing the tax to 20% is expected to create a more level playing field for domestic concrete mixer truck manufacturers.
Explaining the rationale behind this tax increase proposal, the Ministry of Finance emphasizes encouraging Vietnamese businesses to invest in the production and consumption of domestically produced trucks. According to statistics, the production and assembly capacity of medium-duty, heavy-duty, and specialized trucks by domestic enterprises has far exceeded market demand, reaching 45,000 vehicles of all types, three times the actual demand. Meanwhile, import tax rates on trucks in regional countries such as Thailand and Malaysia are high, ranging from 40% to 60%.
The adjustment of truck import tariffs is expected to create a more balanced playing field, supporting the development of domestic truck manufacturers and promoting the Vietnamese automotive industry to gradually become self-reliant and stronger. However, the final decision rests with the Government, and thorough assessments of socio-economic impacts are needed before official implementation.
Source: Chinhphu.vn
