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Vietnam Proposing Import Tariff Exemption for Energy-Friendly Car Parts

Vietnam proposed a move to exempt import duties on car parts intended for the “assembly/manufacture of green/alternative fuel vehicles,” according to an Aug. 27 report from the Hong Kong Trade Development Council. The exemption would apply to parts imported before 2024, the report said.

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The move is aimed at helping the country’s car manufacturing sector, “where development has been hampered by a shortage of local component manufacturers,” the HKTDC said. The move would make it easier for manufacturers to be eligible for the tariff exemption, which currently requires them “to meet certain production output levels in order to qualify for such benefits,” the report said. Vietnam is also hoping the change convinces foreign entities to establish “alternative fuel vehicle assembly and manufacturing plants in Vietnam,” the report said.