Many types of goods are subject to 100% import tax reduction under TPP

12/24/2019

Many experts and businesses said so on the opportunity to revive the Vietnam auto support industry that TPP will bring, if Vietnam has good solutions to take advantage of this opportunity.

Advantage thanks to TPP

"This is an opportunity for automobile manufacturers to invest in development, especially spare parts and accessories" - Mr. Ho Manh Tuan, first deputy general director of LD Honda VN Company (HVN), said so. in exchanging with Youth when there is TPP.
According to Mr. Tuan, Vietnam could attract the attention of investors in manufacturing supporting industries and auto components from TPP member countries, especially Japan, in order to enjoy the preferential import tax rate of 0%. USA, Canada and Mexico.
An expert in the automobile industry said that in the past, the automobile industry in Vietnam could not develop for many reasons, one of which was that the domestic market was too small, not attractive enough to entice and attract investors. invest capital in producing components and accessories in Vietnam.
In the future, when TPP is put into practice, investors producing automobile components, especially Japanese enterprises, can organize production in Vietnam and then return to the parent company to complete the installation. assembled before exporting to member markets.

“While Thailand and Indonesia - the two countries with strengths in producing spare parts for the automobile industry in the region - do not participate in TPP, Vietnam has certain advantages in this area compared to other member countries. "- he said.

For example, Vietnam's labor cost is now only one fifth of the labor cost in Japan, moreover most Japanese automobile brands have invested in manufacturing and assembling cars in Vietnam for many years, each brand is there are partners producing components ...
Components and spare parts made in Vietnam, which are assembled into cars manufactured in Japan or member countries, if reaching the rate of 45%, shall enjoy the import tax rate of 0% when entering the market of market countries. within TPP, especially the world's largest markets for automobile consumption such as North America and Mexico.
These will be prerequisite factors to help rebuild a wave of investment in supporting industries in Vietnam to enjoy the tax advantage within the TPP.