Thailand Imports Surge in Vietnam

The recent trade agreement among the 10-nation Assn. of Southeast Asian Nations triggered a 65% jump in sales of cars shipped from Thailand to Vietnam in January-March, according to Vietnam’s General Customs Dept.

Last year Thailand’s imports ranked third behind China and South Korea. In the first quarter of 2016, Thailand surged above both rivals with 7,800 cars sold, Thanh Mien Daily reports.

Demand for vehicles from China and Korea—neither of which is part of the trade pact—plunged 58% and 41%, respectively, during the same period. Under the ASEAN agreement, Vietnam reduced import tariffs on cars imported from participating nations to 40% from 50% in 2015. The rate will decline to 30% next year and zero in 2018.

The Customs Dept. says Vietnam’s overall car imports in the first three months of 2016 dropped 21% to 19,700 units, mainly because of lower volumes from sources outside the ASEAN pact.