The auto business wants an emergency “buoy”

A consultant of a home vehicle manufacturing and meeting enterprise (DN) mentioned that the Covid-19 epidemic has been difficult for practically two years, inflicting the gross sales of firms to fluctuate erratically. Within the first half of 2020, the passenger automobile section’s consumption decreased by 35% in comparison with the tip of 2019 and recovered not lengthy, till the primary half of 2021, the buying energy decreased by 24% in comparison with the earlier 6 months. . With the primary section of many home automobile producers being passenger vehicles and buses, the lower in gross sales was even better.

Shopping for energy is troublesome to get better within the quick time period

The consultant of the enterprise mentioned that as a result of extended epidemic, which erodes the monetary capability of many organizations, companies and people, the demand for automobile purchases will definitely lower sharply within the second half of this 12 months to the primary half of 2022. , strongly affecting the precise manufacturing output of automobile producers.

In the meantime, home vehicle enterprises should obtain the minimal manufacturing output to take pleasure in incentives below the tax incentive program after the interval 2020. For instance, for the bus and passenger automobile section, enterprises should obtain manufacturing output. The minimal basic quantity of 360 items or the minimal particular quantity for 1 car mannequin or the minimal particular complete output for two car fashions is 200 items throughout the incentive interval to be eligible for the motivation.

“Within the context of unpredictable epidemic developments resulting in fixed market volatility together with restricted commerce between international locations, disrupting provide chains and stalling manufacturing, companies keep attaining the minimal output will probably be twice as troublesome. The output ranges laid out in Decree 125 in 2017 and amended and supplemented in Decree 127 in 2020 are not appropriate for the market” – enterprise consultant The above evaluation and proposal to decrease the minimal output standards to assist home manufacturing.

  The auto industry needs a lifebuoy - Photo 1.

Home automobile manufacturing output decreased as a result of poor consumption and lack of imported elements. Photograph: HOI DUONG

As well as, in keeping with some home automobile producers, Decrees 122, 125 and 57 had been respectively issued in 2016, 2017, 2020 with the purpose of making technical measures to guard the auto market. within the nation below the aggressive strain of imported CBU vehicles when tariff and non-tariff boundaries have been or are on the best way to be eliminated as dedicated in new era free commerce agreements.

Nonetheless, the amount of imported CBU vehicles nonetheless elevated immediately throughout the latest epidemic interval, exhibiting that the home auto business safety coverage remains to be not sufficient. If there isn’t a well timed intervention and removing of boundaries that make it troublesome for companies to entry preferential insurance policies, home manufacturing will face long-term difficulties within the context that buying energy can not enhance within the quick time period.

Registration charge discount: Emergency answer

Noting that companies are at present dealing with difficulties in money move, the report of the Ministry of Planning and Funding on growing a decision to assist companies within the context of the Covid-19 pandemic clearly signifies the necessity to proceed to have insurance policies and options. akin to exemption, discount, extension and postponement of payable taxes and costs, together with excise tax and registration charge for domestically manufactured or assembled vehicles.

“In 2020, the Authorities has allowed to increase the deadline for paying excise tax and scale back the registration charge for domestically manufactured and assembled vehicles till the tip of 2020. In reality, these insurance policies have developed. efficient, each supporting companies to take away difficulties, and stimulating consumption demand, selling home manufacturing, and contributing to financial development.

Just lately, some localities akin to Quang Nam and Ninh Binh proposed to permit the extension of the applying of this coverage till the tip of 2021. Due to this fact, the draft decision assigns the Ministry of Finance to review and consider the affect and submit it to the Authorities. The Prime Minister, the Authorities will contemplate persevering with to implement” – the draft decision report clearly explains the content material associated to the assist of charges and fees for home vehicle enterprises.

On condition that the present assist insurance policies for auto companies aren’t actually robust, the chief of an auto enterprise mentioned that in an effort to assist the home auto business stand agency within the context of the epidemic and have the power to develop sooner or later, it’s essential to particular insurance policies, keep away from generalities and should keep on with the precise scenario.

“Vehicle consumption has been sluggish as a result of pandemic, which has affected home enterprise and automobile meeting. Due to this fact, a variety of preferential insurance policies for domestically manufactured and assembled vehicles are nonetheless maintained however aren’t useful for the home market. Enterprises don’t meet the factors or many different causes.The present emergency answer is a direct incentive on every automobile product consumed, akin to persevering with to increase the discount of registration charges from the start of 2021 to the tip of the 12 months. years to encourage companies to proceed to endure in addition to assist shoppers “- the chief of this enterprise said.

A consultant of the Vietnam Vehicle Producers Affiliation (VAMA) mentioned that he has repeatedly proposed to cut back registration charges by 50% for domestically manufactured and assembled automobiles, however to date, the Authorities has not formally approve. This proposal was diligently put ahead by VAMA as a result of that is the final “buoy” for companies within the context of a chronic epidemic that precipitated many companies to not meet the minimal meeting output to be exempted from import tax on auto meeting elements. .

In the long term, in keeping with VAMA, for the home auto business to develop sustainably, it’s essential to have a breakthrough, clear and synchronous coverage. Specifically, consideration needs to be paid to the coverage of growing home manufacturing of elements and spare elements to create aggressive benefits in addition to scale back prices. If there are good insurance policies, automobile firms will definitely confidently make investments and increase manufacturing.

In response to Mr. Pham Van Dung, Common Director of Ford Vietnam, it is extremely troublesome for home automobile manufacturing and meeting to compete with imported vehicles within the area with the import tax price of 0%. To not point out, the manufacturing value of different international locations is far decrease than that of Vietnam, which can be a fantastic benefit. In the meantime, domestically produced and assembled automobiles are topic to comparatively excessive import tax on elements. “To compete, Ford Vietnam has invested thousands and thousands of USD extra to increase manufacturing, cooperate with a variety of native element producers to interchange imported elements. Nonetheless, it is a long-term plan, it’s nonetheless obligatory for the state to have speedy preferential insurance policies for vehicle enterprises within the troublesome context “- Mr. Dung expressed.

Phuong Nhung – Nguyen Hai

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