
Vietnam
Vietnam, officially the Socialist Republic of Vietnam is the easternmost country of the Indochina Peninsula in Southeast Asia.
Chapter 1: Economic and business environment
Demographics | Estimated 92.7 million inhabitants as of 2016 |
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Capital | Hanoi |
Major cities | Ho Chi Minh City, Da Nang, Haiphong |
Languages | Vietnamese (vi), English (en), French (fr), Chinese (zh), Central Khmer (km) |
GDP | 2,111.14 USD (2015) |
Unemployment rate | 3.4% (2014) |
Main industries | GDP Composition by Sector: Industrial Production Growth Rate: Industries: |
Currency | VND Vietnamese đồng |
Interest rate | 7,4% |
Political key info | Vietnam remains one of the world's four remaining one-party socialist states offically espousing communism. The country is actively opening up for foreign investments and is making it easier for foreign investors |
Inflation | 3.19% (2017) |
Chapter 2 : Automotive market, segments & sales
Total Car park | 20 cars per 1000 inhabitants |
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New vehicle registrations (Cars, LCV, Trucks) | New Car Sales in 2015 : 244.914 New Car Sales in 2017 : 250.619 |
Top 5 brands (total market) | 1. Toyota |
Model preference top 5 (total market) | Toyota Vios - 22260 |
Dealer network (including fleet dealer network) | No or very limited networks. Mostly individual dealers. Vingroup has the Vinfast dealer network that will be distributing Chevrolet from 2018 onwards |
Used car market/renewal cycle | The domestic used-car market is big in comparison with the new car market. The total value of the second hand market is $3 billion per year as estimated by Anycar Vietnam JSC. |
Chapter 3: Company car market
Total Fleet Park (company cars)/Fleet penetration in total fleet sales | Fleet Sales are not measured, but the estimate is below 20.000 units |
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Evolution fleet sales (last 5 years) | Increasing due to the shift from motorcycle to car |
Top 5 fleet brands (fleet market) | 1. Toyota |
Fleet Model preference top 5 (fleet market) | 1. Toyota Hilux |
Chapter 4: Taxation & legislation
4.1 Car Taxation | Only registration tax and no annual road tac, The amount of Special Sales Tax is depending on the engin size. Imported vehicles from outside of ASEAN to Vietnam are subjected to import duties (30%), special sales tax (40 - 150%), VAT (10%) and corporate income tax ( 22%, paid by business, but included in the price). Imported vehicles from ASEAN to Vietnam are NOT subjected to import duties (30%).
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4.2 Income tax – Taxable persons | Tax is due by either car owner, car buyer or car user |
4.3 Company car | Car costs can be deducted from the corporate income tax, at a variable rate between 3.33% and 16.66% |
4.4 Income taxes – drivers’ personal taxation | No taxation on income. Corporate vehicle fee paid based on company regulations |
4.5 Electric vehicles | 10 - 20 % of Special Tax is dued for EV car in Vietnam. However the infrastracture for the EV car is not provided at all and so the EV car use is not realistic. |
4.6 Future developments | Every 1-2 year the tax regime changes. As Vietnam needs funding for infrastructure and other investments, tax is not expected to decrease. |
4.7 Legal background (import taxes) | Imported vehicles from outside of ASEAN to Vietnam are subjected to import duties (30%). Since Jan 1, 2018, Imported vehicles from ASEAN to Vietnam are subjected to zero import duties. |
Chapter 5: Car policies
Company Car entitilement
Mainly tool of trade vehicles
Which sectors provide most fleet cars?
Industry, Pharma, Agriculture
Reference cars
Entry level / Junior level | will depend on the location, type of road, load requirements |
Senior sales / management level | Toyota Hilux Toyota Vios |
Executive level |