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Southeast Asia: Vietnam to cut auto import taxes, sparking competition

 |  October 29, 2013

Vietnamese taxes on imported automobiles will be drastically cut by 2018 for cars coming into the Association of Southeast Asian Nations, reports say.

The move will force major global carmakers like Toyota Motor Corp and Ford Motor Co to compete with the cheaper imports.

The head of the Vietnam Automobile Manufacturers Association Met Arias announced that car duties, currently at 60 percent, will be eliminated.

Arias is also the managing director of Ford’s Vietnamese operations.

The plans are generating much controversy, however, as local reports are slamming the move as one that will cause the auto industry to collapse. The government cited the market as a major part of developing Vietnam into a “modern industrial country by 2020.

Full content: Bangkok Post

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