Vietnam’s online Business Times, analyzing the economics of car ownership, finds the government clearly doesn’t want to overwhelm the roads in one of the world’s biggest two-wheel cultures. Taxes and fees mean the cost of owning a Toyota Camry approaches $100,000.
The analysis shows there are already nine kinds of fees — including import tax, value added tax, luxury tax, car ownership registration tax and $1,000 for a license plate. And there’s more to come: a road maintenance fund that proposes to charge car-owners up to $70 per month starting in June, a proposed vehicle circulation fee of up to $2,500 per year, and a special fee for cars entering the central areas of big cities in peak hours.
Consider the example of a $25,000 Toyota Camry imported from the US.
- $20,750 import tax
- $22,875 luxury tax
- $6,800 VAT
- $15,000 car ownership registration tax
- $1,000 license plate fee
- $250 first-time registration fee.
That adds up to $91,675 (before $1,500 in proposed fees) and a message: Vietnam doesn’t want its transportation infrastructure more crowded or its air more polluted.
More on the cost of owning a car in Vietnam