Ford Vietnam has submitted an application to the Vietnamese government to allow it to import Completely Built-Up (CBU) cars, according to Vietnamese press reports.
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Michael Pease, newly appointed Director General of Ford Vietnam, has reportedly said that if Ford Vietnam are allowed to import finished cars to sell in Vietnam, the selling price of Ford models would be lower than the current levels offered by Ford Vietnam, especially as the import tax had been cut.
The move is described as a blow to the call and effort of the government to cut down car prices in the country where the car price is already over twice the regional average.
The government’s move to lower import tariffs on automobiles, both new and used, to apply downard pressure on domestic car prices appears to be in the buffers.
The government wants carmakers to lower prices to help curb the inflation rate, while carmakers want a reduction in import tax on components.
Ford Vietnam is the third foreign-led automobile joint venture after Toyota and Mercedes, to express the desire to import finished cars.
Ford sold 2,507 cars in Vietnam in the first seven months of this year, up 21% on last year.
