VinFast, Vietnam’s first electric car manufacturer, has been approved for exemption from import tax on parts to manufacture and assemble automobiles to export for testing, following a the proposal of the Ministry of Finance.
|VinFast to be exempted imported tax on parts of exported cars |
VinFast will be one of the special cases under the Law on Export and Import Tax and Decree No.134/2016/ND-CP on guidelines for the law on export and import duties.
As of now, VinFast imports parts and components to assemble finished cars and then export them overseas for testing. This move is to facilitate its long-term plan to export luxury cars.
In December 2019, international media reported that billionaire Pham Nhat Vuong had plans to export electric cars to the US in 2021 and that he would spend $2 billion of his own fortune to realise this plan. This cost makes up half of the total capital in VinFast.
In late March 2020, VinFast submitted its financial statement to the Hanoi Stock Exchange, which reported a loss of VND5.7 trillion ($247.83 million) last year. Besides, the company has an equity capital of VND19.45 trillion ($845.65 million).
VinFast established a technical arm in Melbourne in preparation for dipping a toe in the Australian market. The company, in addition to having an eye on Holden, the legendary car brand that is about to close down in Australia, also expressed interest in acquiring the design and engineering facilities of General Motors (GM) Australia, including the Lang Lang testing system which is in the same situation as Holden.
In addition, the company is in the process of completing necessary procedures to start selling cars in Russia. The source did not reveal a timeframe for when this would happen.
In order to draw attention in the international market, VinFast launched two car models at the Paris Motor Show 2018 just a year after the company’s incorporation. These two car models were both based on BMW design and powertrain. Both are powered by a 2.0-litre turbocharged engine and an 8-speed automatic transmission. Currently, both two models have been launched to the market.