VietNam Business: imports

Showing posts with label imports. Show all posts

Saturday, November 20, 2010

Beer imports rise on luxury tax cut

Beer imports rise on luxury tax cut Beer imports have increased sharply this year even though industry insiders say local production surpassed demand for the popular beverage.

Beer imports have increased sharply this year even though industry insiders say local production surpassed demand for the popular beverage.

At Cat Lai Port, which handles 80 percent of imported goods brought into Ho Chi Minh City and neighboring provinces, beer imports have reached US$282,661 so far this year. The imports, comprising more than 33,800 cases and 40,140 bottles, rose 55.2 percent in terms of value compared to the same period last year.

Customs officials at the port said tax cuts have driven a surge in imports this year. The luxury tax rate on beer products was cut to 45 percent from 75 percent last year. It is set to be lowered further to 30 percent in 2012.

According to the Vietnam Beer, Alcohol and Beverage Association, local beer consumption is around 28 liters per person per year. There are around 350 beer production factories around the country, with more than 35 major plants that have a capacity of more than 15 million liters a year.

A major beer producer who wished to be unnamed said Vietnam’s beer output has already outpaced local demand and many production lines are not running at full capacity.

Industry insiders have also questioned a recent decision by Ministry of Industry and Trade to allow a large volume of Heineken beer imports.

According to the decision, the import of 650,000 cases, equivalent to nearly 5.15 million liters, were meant for market study purposes.

However, industry insiders said the quantity was too big considering Heineken already holds a large market share and has production facilities in Vietnam. They suspect that the imports are meant for sale, given the preference among local customers for imported products.

The complaints have prompted the ministry to revoke the permission granted to Vietnam Brewery Limited, the producer of Heineken beer in Vietnam.

Tuesday, October 19, 2010

Firms urged to cut imports

Containers are loaded at Chua Ve Port in Hai Phong. The nation's imports totalled $52.68 billion in the first eight months of the year, an increase of 24.4 per cent over the same period last year. — VNA/VNS Photo Hong Ky

HA NOI — Businesses should reduce imports and increase the use of domestic raw materials and equipment in order to help curb the nation's trade deficit, said Minister of Industry and Trade Vu Huy Hoang during an online meeting with business leaders on Monday.

Firms also needed to find ways to reduce costs, increase the supply of skilled workers, and boost trade and export promotion efforts, Hoang said.

Attendants at the conference agreed that a dependence on imported materials was influencing the prices of export products due to market fluctuations. They also noted that it could subject some export products to trade barriers from other countries.

The trade deficit hit a record US$8.16 billion in the first eight months of the year, an increase of $3 billion over the same period of last year, according to ministry sources.

Imports also rose to 18.3 per cent of total export turnover, and, without more effective measures, the ratio might exceed the 20-per-cent limit set by the National Assembly, the ministry said.

The nation's imports totalled $52.68 billion overall in the first eight months of the year, an increase of 24.4 per cent over the same period last year. Domestic businesses accounted for $30.3 billion of the imports – an increase of 13.2 per cent – while foreign-invested firms imported $22.37 billion worth of goods, a whopping 43.6-per-cent increase.

Imported materials for industrial production rose dramatically, including machinery, up 14.9 per cent, textiles, up 38.1 per cent and metals, up 79.9 per cent Among consumer products, imports of electronics, computers and accessories rose 31.5 per cent and imports of clothing climbed by 26.6 per cent. — VNS

Monday, September 20, 2010

Car imports decline for first time

Photo: Tuoi Tre

The domestic automobile market this month may see a decrease in both import volume and value for the first time, according to the General Statistics Office (GSO).

In August, the GSO estimated that the number of autos imported to Vietnam was only 4,000 units—down by 9.1 percent over last month. The total import value was worth only US$78 million, a month-on-month decline of 18.8 percent.

According to market insiders, the import car market has been strongly affected by a number of new policies, economic conditions and Vietnamese people's thoughts that the seventh month of the lunar calendar is not a lucky time.

"The Government has issued many policies to limit imports for a long time. Now, these policies are becoming effective," said Nguyen Trung Hieu, an official from the Vietnam Automobile Manufacturers' Association (VAMA).

Hieu added that these policies were diversified. They were focused in many fields, including customs and tax.

"For example, importers have to show environmental protection certificates before they can make imports. And, tax loans are not allowed," Hieu said.

Credit-tightening policies of banks were also limiting car imports.

"Currently, not only the auto market, but other industries as well are also facing difficulties," Hieu concluded.

In previous months, the volume of imported autos was down, but import turnover had continued to increase.

In detail, the number of autos imported to Vietnam from May to July was 5,300, 4,600 and 4,400 units, respectively.

In May and June the market poured about $89 million each month for imports. The number increased to $96 million in July.

Experts attributed the value increase to the new trend of using luxury cars by domestic consumers.

It has been said that in the coming months, a car that costs about half a million dollars will come to Vietnam. Currently, a car worth more than $600,000 is being displayed in a showroom in the capital city of Hanoi.

Car imports decline for first time