HÀ NỘI — The Ministry of Industry and Trade has proposed stricter rules on the import of automobiles disguised as gifts in a move aiming at closing loopholes that have allowed tax avoidance.

The proposal was raised in a draft Prime Minister’s decision on imports of automobiles classified as gifts, donations or movable assets.

If passed, the decision would put an end to the practice of individuals and unqualified firms directly declaring imported cars as gifts.

Car imports must be conducted through licensed dealers following regulations on car assembly, import and warranty services, making non-commercial imports aligned with the existing regulations for commercial imports.

Individuals or organisations receiving cars as gifts would have to authorise licensed firms to complete import procedures, rather than importing directly.

The draft requires imported vehicles, whether commercial or non-commercial, to meet technical safety and environmental standards and be eligible for servicing at authorised facilities within the country.

Used cars brought in as gifts or moving assets would remain subject to foreign trade laws.

The Ministry of Industry and Trade will publish a list of licensed importers, while the Ministry of Construction will announce eligible service facilities. Customs authorities will process clearance only once dossiers are deemed complete.

The ministry said the move would help prevent loopholes from bringing in luxury cars under the guise of gifts, which had led to significant tax losses in past years.

Statistics of the Ministry of Finance showed that customs authorities approved imports of more than 3,800 'gifted' cars of fewer than nine seats between 2016 and 2022. Declared tax payments totaled VNĐ8.8 trillion ($347 million), but reassessment raised the figure to VNĐ13.3 trillion, meaning a shortfall of VNĐ4.4 trillion due to under-valuation.

Besides the loophole in valuation, which requires a transparent pricing mechanism, there were also problems with post-import monitoring. Many gifted cars appeared almost immediately in showrooms after import.

Experts said that it is also necessary to develop regulations requiring imported gift cars to be used for a minimum period before they can be resold to prevent illegal trading.

Industry insiders said that if the draft is approved, the supply of luxury cars entering the market through unofficial channels will immediately reduce, which could drive up prices of these models in the short term. However, it is critical to ensure transparency to stabilise the market, ensure compliance and create a fair playing field.

The fact showed that most cars imported as gifts are luxury models, sourced mainly from the Middle East, the US, Japan, the Uk and Austria, such as Mercedes Benz AMG G63, Lexus (LX570, RX350, LM300h), Land Rover Range Rover, Ford F150, Toyota (Highlander, Sienna), Rolls-Royce, Ferrari, McLaren 720S, Lamborghini Urus and Maybach GLS600.

The General Department of Customs has put the import of gifted automobiles under scrutiny since 2022 to handle violations.

Car imports surge, China emerges as a key supplier

Việt Nam’s car imports have surged significantly since the beginning of this year with China emerging as one of key suppliers and reshaping the market’s structure.

According to statistics of the General Department of Customs, the country imported 128,355 completely-built-units (CBUs) as of August 15, worth US$2.82 billion, representing increases by 31.3 per cent in volume and 40.8 per cent in value over the same period last year.

Vehicles with up to nine seats accounted for the majority with more than 98,000 units worth $1.73 billion, accounting for 75.6 per cent of the total import volume and 61.3 per cent of the total import value.

In January - August, Việt Nam imported an average of 17,114 units per month, higher than 2024’s monthly average at 14,463 which set a record.

Indonesia, Thailand and China are the biggest suppliers in the period with shipments from China rising considerably.

Customs data showed that Indonesia was the top supplier by volume in the first seven months of this year, with 45,282 units worth $645 million, up 19 per cent in volume. Thailand came the second with 41,988 units, worth $882 million, up 28 per cent in volume.

Notably, China ranked third in volume with 27,331 units but lead in value at $888 million, reflecting a 59 per cent rise in shipments and a 70 per cent surge in value.

In comparison, Thailand ranked first in import value last year with $1.2 billion, followed by Indonesia with more than $1 billion and China with $909 million.

According to the Việt Nam Automobile Manufacturers’ Association (VAMA), imported cars continued to outsell locally assembled vehicles in July, making the fifth consecutive month of stronger demand for imported units.

VAMA’s statistics showed that more than 16,000 CBUs were sold in July, outnumbering sale of locally assembled vehicles at 15,700 units.

The trend underscores Vietnamese buyers’ preference for imports, which often offer more diverse models, brands and features at increasingly competitive prices, particularly those from Thailand and Indonesia that enjoy zero import tariffs under ASEAN trade agreements.

Sales in seven-month period totaled 301,613 units, of which imported CBUs reached 101,940 units, up 25 per cent and locally assembled units reached 92,820 units, up 13 per cent. — VNS