No plans to end manufacture in Vietnam: Toyota executive

By Luu Quang Pho, Thanh Nien News

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Toyota Motor Vietnam sold 41,205 cars in 2014. Photo: Luu Quang Pho

Yoshihisa Maruta, Toyota Motor Vietnam’s general director, on Tuesday denied rumors that the company will end its manufacture in Vietnam when import taxes become zero under a regional agreement in 2018.
He told Thanh Nien at the launching ceremony of a new Camry model in Hanoi the company still wants to assemble cars in Vietnam.
Rumors have it that Toyota Motor Vietnam (TMV) will import and distribute whole cars instead of importing the parts and assembling them like it now does in Vietnam, after import taxes for whole cars would fall to zero in 2018 under the ASEAN Free Trade Agreement (AFTA).
The free trade deal would make imported cars cheaper than locally assembled ones.
Maruta said TMV does not have any plans to end its manufacture in Vietnam, but he wishes the Vietnamese government would issue detailed and proper supporting policies, including tax policies, to develop the local automobile industry from now until 2018.
Three years is not too short for such policies to be issued, he said.
However, he did not confirm the prices of TMV’s locally assembled cars will be decreased after 2018 in order to compete with imported cars.
“We can’t confirm it will decrease or not; this depends mostly on the Vietnamese government’s policies,” he said.
Established in 1995, TMV is one of the largest car makers in Vietnam.
Last year, it sold 41,205 cars and was reported to make huge profit in the country.

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