Saigoneer

BackSociety » Development » After Massive Auto Tax Breaks, Will Saigon Become a Parking Lot?

After Massive Auto Tax Breaks, Will Saigon Become a Parking Lot?

It looks like Saigon won’t be able to avoid the 'car age' after all. Under new import rules for 2014, autos produced by ASEAN neighbors will receive a 50 – 60% tax reduction and many fear that Vietnam’s cities will be filled with cars before major public transportation projects are complete.

These tax breaks stem from the ASEAN Trade in Goods Agreement (ATIGA), which seeks to increase trade between ASEAN nations.

If last March’s much smaller tax breaks are any indication, 2014 will see massive sales - automotive imports from Thailand and Indonesia doubled from 2012 to 8,826, worth nearly US$150 million.

In addition to the lowering of import taxes, many Vietnamese cities and provinces have reduced registration fees to 10% of the vehicle’s total value.  


Related Articles:

How Saigon Plans to Avoid the 'Car Age'

Saigon to Implement $155 Million Bus Rapid Transit System

A Complete Map of the HCMC Metro System 


According to Nguyen Van Thanh, chairman of the Viet Nam Automobile Transportation Association, we’re about to see an explosion of cars in the country, "I am sure that many people were waiting for the tax cut before buying a car," he told tienphong.vn.

This was echoed by Nguyen Van Vinh, owner of a Hanoi auto showroom who said many of his customers often asked about tax reductions.

While those in the auto industry are rightly excited, others, such as Former Director of Transport, Nguyen Xuan Thuy see a traffic-filled future, "Look at the flow of vehicles in a congestion area, we can see that small cars are the main reason. A five-seat car always carries only one or two persons."

Indeed. Head of the ministry's Transport Department, Khuat Viet Hung recently announced the results of a road study conducted in Ha Noi which revealed  that, “although the number of cars is only 10 per cent that of motorbikes, they occupy 55 per cent of the road space and 60 per cent of the parking places."

While Thuy felt that keeping the number of cars in check, while quickly developing public transportation was the best option to avoid constant congestion, Hung pointed out that even EU countries with good public transportation infrastructures still suffer from serious traffic jams.

With both Saigon’s first metro line and planned BRT system at least 4 years away, Saigon’s streets may soon become unbearable to drive.

[VNS // Photo via Sippanont Samchai]

Related Articles

in Development

$2bn Thu Thiem Eco Smart City Set to Break Ground This Year

A week after the city unveiled Thu Thiem Empire City, a project that will include Vietnam’s tallest building, a group of Asian developers have announced that they will break ground on its neighbor, th...

in Development

'House for Trees' in Tan Binh District

Vo Trong Nghia Architects, winners of ArchDaily’s ‘House of the Year’ award, is undoubtedly Vietnam’s leading sustainable/green design firm. One of their latest projects, ‘House for Trees’ was complet...

in Development

15 Projects That Will Change Saigon Forever: Part 1

The area between Bến Thành Market and the Saigon Opera House is undeniably the epicenter of changes to the city’s urban fabric with the construction of pedestrian promenades, subway stations, a n...

in Development

15 Projects That Will Change Saigon Forever: Part 2

The area between Bến Thành Market and the Saigon Opera House is undeniably the epicenter of changes to the city’s urban fabric with the construction of pedestrian promenades, subway stations, a new ad...

in Development

15 Projects That Will Change Saigon Forever: Part 3

The area between Bến Thành Market and the Saigon Opera House is undeniably the epicenter of changes to the city’s urban fabric with the construction of pedestrian promenades, subway stations, a new ad...

in Development

2.5 House: A Modest Dream Home in a Tan Binh Alley

Given the expenditure often required to build out a well-designed home, most of those featured on Saigoneer are anything but modest. That’s why we were particularly stoked to come across this small bu...