Toyota considers ending vehicle production in Vietnam
Vietnam is set to remove the 50–60% of vehicle duties which are currently applied on imports of completely built-up (CBU) vehicles in 2018
Toyota Motors Vietnam is considering ending its local vehicle production this year, according to comments from company president Yoshihisa Maruta reported by local news agency Vietnam News Summary. Maruta, who is also president of the Vietnam Automobile Manufacturers' Association (VAMA) said that, as per the Association of Southeast Asian Nation (ASEAN) free-trade agreement (FTA), Vietnam is set to remove between 50–60% of vehicle duties which are currently applied on imports of completely built-up (CBU) vehicles, to 0% in 2018. "The biggest difficulty is Vietnam has a weak supporting industry… Toyota Vietnam is waiting to see if the government will create more incentives to help local manufacturers overcome future obstacles, as imported cars and spare parts will be very competitive [post 2018]."
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