As car sales continue to reduce, local importers have asked authorised agencies to apply a 50% reduction in registration fees for imported cars in order to remove discriminatory tax reduction currently used for only locally-assembled vehicles.
|Under current regulations, buyers of imported cars have to pay registration fees of 10-12 per cent|
The European Chamber of Commerce (EuroCham) noted in its newly-released Whitebook on the year’s investment issues affecting the business community that, “Currently, buyers of cars with less than nine seats in Vietnam are subject to a 10 per cent registration fee, or 12 per cent for residents of Hanoi. With the decision to reduce registration fee, buyers of domestically-manufactured and assembled vehicles will only have to pay a fee of 5-6 per cent. Those who buy cars imported from abroad still have to pay registration fees of 10-12 per cent, depending on the locality.”
It added that “with domestic car companies in joint ventures, only two European brands out of 19 imported in Vietnam will benefits on their locally-assembled models.”
However, according to the Vietnam Automobile Manufacturers’ Association, the temporary 50 per cent cut in registration fees for locally-assembled cars starting from June 26 and lasting until the end of the year aims to encourage domestic production. If applied to imported cars, the preferential policy will no longer be meaningful. Moreover, not only luxury cars from Europe but also cars from some ASEAN countries such as Thailand and Indonesia will enter into Vietnam on a massive scale.
In 2019, completely-built-up (CBU) imported passenger cars increased by 54 per cent to almost 91,000. Imports from Thailand and Indonesia now represent 90 per cent, as some completely-knocked-down (CKD) assemblers have switched to CBU import from the ASEAN.
With approval given for a 50 per cent cut in registration fees for locally-assembled cars, makers with many domestic and assembled models such as Truong Hai Auto Corporation (THACO), Thanh Cong, VinFast, Toyota, Peugeot, and Mercedes-Benz will benefit as customers move from CBU units to localised models. The fee cut can help the auto market stay afloat after recent global woes due to COVID-19.
In order to lure in customers for domestically-produced vehicles, Ford’s new EcoSport model is set for release this year after it gets its license from Vietnam Register.
Although there is no official announcement for planning to domestically-produce the Honda CR-V instead of importing the model, Honda has already received the licence for it.
Imported Honda CR-V products, the group’s bestseller, will lose many of its advantages and even have to join a price war with domestically-assembled vehicles. Imported CR-Vs model are now priced between VND983 million-1.09 billion ($42,700-47,500), and customers in Hanoi have to pay VND118-130 million ($5,100-5,700) registration fee. Meanwhile, customers only need to pay about VND60 million ($2,600) for a locally-built Mazda CX-5 or a Hyundai.
In 2019, locally-invested THACO launched two factories for Mazda and THACO Bus with capacity at 50,000 and 20,000 vehicles per year, respectively. Toyota imports CBU cars from the ASEAN but also upgraded its factory to 90,000 vehicles per year. Mitsubishi plans to open a second factory to produce up to 50,000 vehicles this year, while Hyundai Thanh Cong announced investment in a second factory to double capacity to 240,000 vehicles per year.
Besides registration fees, European car makers suggested that the Ministry of Finance exceptionally re-allows partial clearance at customs by re-authorising bonded warehouses for new CBU-imported vehicles until December. Such customs clearance extension should provide the necessary time for importers to recover financially and pay taxes gradually as they sell their stock as the economy recovers.
The warehouses are not allowed to import CBU vehicles for sale in Vietnam, and CBU importers must pay all taxes including import, special consumption, and VAT at customs clearance immediately. With car sales in Vietnam now low, the market will take time to recover as customers look to ensure their own financial safety. Thus, cash is scarce both at importers and dealers and will remain so until a global recovery in the supply chain and the market as a whole, according to EuroCham. VIR
Timo officially moves to new banking partner
After five years of establishment and development, Timo, the digital banking platform which was awarded Best Digital Bank in Vietnam 2019 by AsiaMoney, has decided to join forces with a new banking partner — Viet Capital Bank — in order to deliver more rapid innovation and a better experience to customers.
The new app is called Timo Plus, which is an improved version of Timo that will continue to be one of the innovative digital banking platforms in Vietnam when it launches in September.
Timo’s mission is to provide a smart financial management platform with a focus on the best user experience.
With the intuitive and user-friendly interface of Timo Plus, users can conveniently send and receive payments, manage savings and investments, borrow money and create financial plans.
To accomplish this mission, Timo has striven to find a suitable, long-term partner who brings not only the core banking systems but also shares our vision of creating the best digital banking platform for the increasingly sophisticated customer base in Vietnam.
Thus, after rigorous study and due diligence, Timo and Viet Capital Bank decided to form this strategic partnership.
With this partnership, the new digital banking application, Timo Plus, will continue to have all the best features of the current Timo app and will continue to innovate on Viet Capital Bank’s core banking platform and technology.
The user experience and benefits of customers are always Timo’s main focus, and it will continue to put customers first in the new Timo Plus app.
Timo’s existing customers will have the option to seamlessly migrate to the Timo Plus application with the new banking partner, Viet Capital Bank, in the coming weeks.
The transition is expected to be completed on September 8, 2020. After this date, Timo customers will no longer have use of the current app.
Those who have not already migrated to the new Timo Plus app will have the option of maintaining their account with VPBank or shut down their account.
Putting customers first has always been Timo’s focus irrespective of banking partner.
During the transition, customers can visit the website www.timo.vn for more information, email [email protected] or call 1800 6788 during working hours. Timo is ready to serve and support customers as usual.
About Timo’s digital banking platform
Established in 2015, after five years of building and developing, together with receiving the support of customers, Timo as a digital banking platform has brought customers outstanding products and services in the Vietnam banking market.
Timo provides its customers with a comprehensive set of tools to support their financial needs with essential banking services.
Timo’s hybrid ‘Hangout’ brick-and-mortar concept, combined with the simple and user-friendly application, brings modern banking services to the public in the most innovative way.
Timo Spend Account enables spending and tracking of money with a fully functional account and debit card for transferring money, paying bills, topping up credit to any mobile phone number, and access to ATM withdrawals nationwide — all for free.
Timo members have the ability to send money to other Timo members using just their email address.
Smart Savings options like Goal Save enable built-in financial planning for short- or long-term goals with the option of recurring contributions towards their goal from their Spend Account.
Term Deposits also encourages digital savings using competitive interest rates and intelligence to help customers break down the Term Deposit into smaller units for maximizing interest earned even in case of early redemption.
Lending products like Fast Cash or overdraft can be applied for and credited to the customer’s accounts in under 30 minutes, while applying for a Credit Card is aimed at minimizing hassle.
Customers can also purchase insurance, flight tickets and invest in mutual funds through partners’s products available right in the Timo app.
About Viet Capital Bank
Viet Capital Bank was established in 1992. Over 27 years of development, with the business strategy of becoming a modern and multi-functional bank, Viet Capital Bank has taken great strides in the transformation of the banking sector in Vietnam through a focus on technology and customer care, especially for SMEs and individual clients.
In digital banking, Viet Capital Bank is recognized as agile and quick to adopt digital transformation initiatives such as being the first to implement eKYC with TrueID technology from VNG.
Viet Capital Bank has also been a pioneer in online and mobile banking, and has led the banking sector in partnerships with the leading fintech and digital financial services innovators.
Its business results through the first six months of this year reflect the benefits of this focus on technology and innovation as the number of transactions and transaction value handled by Viet Capital Bank have increased by over three times and over five times, respectively, as compared to last year.
Analysts, authorities make contrasting claims about high Vietnam gold prices
A supply shortage in Vietnam has widened the difference between domestic and global gold prices, according to experts, but authorities reject the claim.
Gold prices have been rising relentlessly this year as investors sought a safe haven amid the uncertainties caused by the Covid-19 pandemic. Vietnamese gold prices have always been higher than international rates, but in recent weeks the difference has been widening.
Prices of the popular SJC gold on Saturday morning was VND60.3 million ($2,594.87) per tael of 37.5 grams (1.2 ounces). This translated into a difference of $150, up from $40-100 last month.
Huynh Trung Khanh, senior consultant to the World Gold Council in Vietnam, Singapore and Indonesia, said the growing difference could be because there is a short supply and gold sellers have hiked prices.
The chairman of the Vietnam Gold Investment and Trading Corporation (VGC), Tran Thanh Hai, concurred with him saying local distributors like Saigon Jewelry Company (SJC) and DOJI are concerned about a shortage and have pushed their prices up.
DOJI reported a 30 percent surge in the number of customers in July and this month from a year ago. Bao Tin Minh Chau, another seller, said at times in recent weeks demand was several times higher than in the same period in past years.
But authorities dismiss this. Nguyen Hoang Minh, deputy director of the State Bank of Vietnam’s Ho Chi Minh City branch, said there is no short supply of gold bullion.
Gold companies are only pushing up prices to hedge the risks arising from the global volatility, he said.
Vietnam, with reserves of nearly $90 billion, could intervene in both the gold and foreign currency markets if necessary, he added.
Vietnam becomes second most optimistic country in Q2 2020: Nielsen
After one year, Job security overtook Health to become No.1 concern of Vietnamese consumers.
Overcoming the first wave of Covid-19, in the second quarter (Q2) of 2020, Vietnam became the second most optimistic country globally with Consumer Confidence Index of 117 points, despite being down 9 points compared to Q1, according the latest report by Nielsen Vietnam for Q2/2020.
|Source: Nielsen Vietnam|
In Q2, the Global Consumer Confidence Index fell sharply from a near historic high of 106 in Q1 to 92, indicating pessimistic consumers outnumbered optimistic ones globally for the first time since 2016. A reading below 100 is considered negative.
The 14-point drop is the largest quarterly decline since the index began in Q1 2005 and is twice the largest drop in the index during the global financial crisis in 2008/09, according to the report.
In Q2, 56 out of 68 markets in the survey reported confidence levels under 100, signaling greater pessimism among consumers globally. Ten markets reported levels under 66 (very negative territory). This implies that almost all consumers surveyed globally are pessimistic. Despite the plunge in confidence across all Asia-Pacific markets, the region polarized, being home to many of the most optimistic as well as the most pessimistic consumers in the world.
Although there was a sharp decrease from 126 to 117 points compared to the previous quarter, Vietnam still placed among the most optimistic countries globally. As such, Vietnam overcame the Philippines and Indonesia to rank 2nd in the world for having the most positive consumers, after India, whose score was 123.
|Source: Nielsen Vietnam|
The combination of deteriorating job prospects, rising anxieties about short-term personal finances and spending readiness drove the decline in Vietnam’s consumer confidence this quarter.
All three drivers of consumer confidence including job prospects, personal finances, and spending intentions witnessed significant declines.
“Having successfully managed the first wave of the outbreak, Vietnam is on a rebound, however, consumer confidence is weaker overall due to the impact of the pandemic which has impacted many people’s personal situation as well as their outlook of going forward,” said Louise Hawley, managing director of Nielsen Vietnam.
Job security becomes No.1 concern
In the quarter, Job security overcame Health to be the top concern of Vietnamese consumers who continued to rank Job security and Health as their top two key concerns.
|Source: Nielsen Vietnam|
Remarkably, there was a big jump in consumer concern about the Economy (31%, up 10% against Q1), which is now at the highest level since Q2 2014.
Work-life balance moved down one spot on the key concern list with less than one in four consumers indicating it as a worry (23% compared to 22% respondents in Q1). Hanoitimes
Singaporean man sentenced to death for drug trafficking in Vietnam
Returnees from Da Nang can go to work after quarantine without COVID-19 testing: HCDC
Vietnam PM says risk of COVID-19 community spread ‘very high’
Vietnam adds five COVID-19 cases Saturday morning, including two imported
Timo officially moves to new banking partner
Five Hollywood movies starring Vietnam’s A-list actress
15 Japanese firms to move China production lines to Vietnam
Sex for $30,000: HCMC police bust pricey prostitution ring
‘Glee’ star Naya Rivera feared drowned as search resumes at US lake
Solar power plants accelerate connection to grid to enjoy incentive
Society5 days ago
Nigerian drug trafficker arrested in Tay Ninh
Business1 week ago
VIETNAM’S BUSINESS NEWS HEADLINES JULY 30
Business2 weeks ago
Radiant bridge in Tra Su cajuput forest
Travel1 week ago
Int’l supermodel helps promote Vietnam’s tourism
Society4 days ago
Six people get harsh jail terms for illegally bringing Chinese into Vietnam
Society1 week ago
VN confirms 12 more COVID-19 infection cases, another COVID-19 patient dies
Business2 weeks ago
Hoa Sen Group seeks to withdraw from US$10 billion Ca Na steel project
Life1 week ago
Free English classes for Vietnamese community in Singapore amid pandemic