Imported Cars in Vietnam: Tax, Pricing, and Approval Process Explained

Importing cars into Vietnam is a complex process involving multiple taxes, fees, and regulatory requirements. Here’s what you need to know:

• Key Taxes: Import Duty, Special Consumption Tax (SCT), and VAT significantly increase the car’s cost. Tax rates depend on the car’s origin, engine size, and fuel type.
• Costs Beyond Taxes: Factor in shipping (₫25M–₫65M), insurance (0.5–1.5% of car value), customs clearance (₫3M–₫8M), inspections (₫2.5M–₫4M), registration fees (₫1.5M–₫3M), and potential compliance adjustments (₫5M–₫25M).
• Approval Process: Requires extensive documentation, customs clearance, and technical inspections to meet Vietnam’s safety and emissions standards.
• Timing & Exchange Rates: Costs can vary due to exchange rate fluctuations and seasonal shipping trends.

For example, importing a $25,000 USD car can cost up to ₫1.29 billion after taxes and fees. Proper planning and compliance are essential to navigate this process smoothly.

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Vietnam’s Tax System for Imported Cars

Vietnam’s tax system for imported cars is a complex structure designed to serve two main purposes: protecting local manufacturing and generating government revenue. It includes import duties, Value Added Tax (VAT), and the Special Consumption Tax (SCT), all of which significantly increase the car’s CIF (Cost, Insurance, and Freight) value.

Import Duties: The Basics

Import duties form the backbone of Vietnam’s car taxation system. The rates depend on several factors, including the vehicle’s origin, manufacturing year, and any trade agreements in place.

For instance, cars manufactured in ASEAN countries enjoy reduced duties thanks to regional trade agreements. Similarly, vehicles imported from the European Union benefit from the EU-Vietnam Free Trade Agreement (EVFTA), which has gradually lowered import duties since its implementation. On the other hand, cars from countries without preferential agreements – like the United States, Japan, or South Korea – face higher duty rates, calculated based on the CIF value.

The vehicle’s age also plays a role. Older vehicles may face additional duties or even import restrictions. Meanwhile, electric and hybrid cars often receive incentives aimed at promoting environmentally friendly options.

VAT and Special Consumption Tax (SCT)

VAT is a flat 10%, applied to the total of the CIF value and import duties. The SCT, however, is more variable, determined by engine size and fuel type.

• Cars with smaller engines are subject to lower SCT rates.
• Larger engine vehicles or those using conventional fuels face higher SCT rates.
• Diesel vehicles may incur even higher SCT due to environmental concerns.

Since the SCT is calculated on the combined CIF value and import duties, and VAT is applied on top of this total, these cascading taxes can significantly increase the overall tax burden.

Tax Rate Comparison by Vehicle Type

The table below illustrates how tax rates vary across different vehicle categories:

Timing and Exchange Rates

The timing of your car import can also affect the total cost. Vietnam Customs calculates the CIF value using the official exchange rate provided by the State Bank of Vietnam on the day the declaration is made. Exchange rate fluctuations between the Vietnamese đồng and foreign currencies can significantly impact the final tax liability.

Understanding these tax rules is essential for importers. It helps them choose the right vehicle, prepare the necessary documentation, and plan the timing of their imports to minimize costs.

Total Cost Breakdown for Imported Cars

Bringing a car into Vietnam involves more than just taxes. You’ll need to account for the vehicle price, shipping expenses, and a range of fees after the car arrives. Together, these costs make up the full price of importing a vehicle.

Vehicle Price and Shipping Costs

The starting point for calculating import costs is the CIF (Cost, Insurance, and Freight) value. This figure determines the taxes you’ll pay.

The vehicle purchase price is the largest part of the CIF value. This is the amount you pay to the seller abroad, usually in foreign currency. Keep in mind that exchange rate fluctuations can impact this cost, especially if there’s a delay between agreeing on the price and making the payment.

Shipping costs vary based on where the car is coming from and the shipping method. For instance, container shipping from Japan typically costs between ₫25,000,000 and ₫45,000,000 per car. Shipping from Europe is pricier, ranging from ₫35,000,000 to ₫65,000,000. A cheaper option is roll-on/roll-off (RoRo) shipping, but it offers less protection for your vehicle during transit.

You’ll also need mandatory shipping insurance, which is calculated at 0.5–1.5% of the car’s value. For a mid-range vehicle, this adds around ₫5,000,000 to ₫15,000,000 to your costs.

Once the car arrives, there are additional fees to consider.

Registration, Inspection, and Compliance Fees

After the car reaches Vietnam, you’ll face a series of mandatory fees for customs clearance, inspections, and registration. These are non-negotiable and should be factored into your budget.

Customs clearance fees typically range from ₫3,000,000 to ₫8,000,000, depending on the complexity of the import process. While you can handle customs paperwork yourself, many people hire brokers to avoid delays and ensure everything is done correctly.

Vehicle inspections are required to confirm that your car meets Vietnam’s safety and emissions standards. These inspections usually cost between ₫2,500,000 and ₫4,000,000 per car.

Registration fees, which cover licence plates and documentation, vary by location but generally fall between ₫1,500,000 and ₫3,000,000. If you’re registering the car in major cities like Hanoi or Ho Chi Minh City, expect slightly higher fees.

If the car doesn’t fully meet Vietnamese standards, you’ll need to pay for compliance modifications. Common adjustments include changing headlights for local conditions, converting the speedometer to kilometres per hour, and updating the emissions system. These modifications can cost anywhere from ₫5,000,000 to ₫25,000,000, depending on what’s needed.

Here’s a practical example to illustrate these costs.

Sample Cost Breakdown in VND

Let’s say you’re importing a 2020 Toyota Camry from Japan with an original price of $25,000 USD. The table below outlines the costs:

This example shows how a $25,000 USD vehicle can end up costing approximately ₫1.29 billion to import, with nearly half of the total cost coming from taxes and duties.

It’s important to note that these figures are estimates. Costs can vary based on exchange rates, changes in tax policies, and the specific features of the vehicle. Additionally, new Special Consumption Tax rates, effective from 1 January 2026 under Law No. 66/2025/QH15, may impact future costs [7].

Import Approval Process Steps

Getting approval to import a car into Vietnam requires thorough preparation and strict compliance with established procedures. The process involves multiple government agencies and demands precise documentation. Knowing each step can save you time and help ensure your vehicle clears customs without unnecessary delays.

Required Documents and Certificates

Before your car arrives in Vietnam, it’s crucial to have all the necessary paperwork in order. Missing or incomplete documents can lead to significant delays.

Key documents include:

• An application form for importing the vehicle
• An automobile import license
• The bill of lading from your shipping company
• A customs declaration for export/import
• A vehicle registration declaration

You’ll also need personal identification documents, such as a valid passport, a visa with at least three months of validity, a valid work permit, and your household registration book. Any foreign documents must be authenticated and legalized in the country of origin before shipping.

"The process of importing cars into Vietnam is very complex and detailed, so companies or anyone interested in such methods needs to be informed. The required documents and procedures regarding vehicle import are vital to avoid any customs issues or errors." – VICO Indochina expert

One critical warning: modifications, such as engine swaps or changes to the Vehicle Identification Number (VIN), are prohibited and will delay customs clearance.

Once your documents are ready, the next step involves customs clearance and vehicle inspection.

Customs Clearance and Vehicle Inspections

When your vehicle arrives at a Vietnamese port, customs clearance begins with document verification, followed by a physical inspection of the car.

The process starts with submitting your documents for review. A customs officer will check your automobile import license, bill of lading, and customs declaration to ensure everything is in order.

The physical inspection is meticulous. Officers will verify that the vehicle matches the documentation, confirm the VIN number, and ensure no prohibited modifications have been made.

After passing the inspection, you must pay all applicable import duties. These include:

• Import duty
• Special Consumption Tax
• Value-Added Tax (VAT)

Paying these duties promptly is essential to avoid delays. Once payments are made, customs will issue a Customs Release Certificate.

Within 10 days of customs clearance, you must register the vehicle with the Vietnam Register or an authorized testing center for technical safety and environmental inspections. These tests ensure the vehicle meets Vietnam’s safety and environmental standards. Upon passing, you’ll receive the Certificates of Technical Safety and Environmental Protection, which must be submitted to Vietnam Customs to finalize the import process.

Approval Process Step-by-Step Guide

After clearing customs, follow these steps to complete the import process:

• Pre-arrival preparation: Register with Vietnam Customs as an importer and ensure all documents are complete and authenticated before shipping your vehicle.
• Customs submission: Submit your customs declaration and required documents upon arrival. A customs officer will schedule a physical inspection for your vehicle.
• Inspection: Be present or have a representative available during the inspection to address any questions.
• Payment of duties: After passing the inspection, pay all applicable taxes and duties. Once payment is confirmed, you’ll receive the Customs Release Certificate, allowing you to take possession of the vehicle.
• Technical and environmental testing: Register for testing within 10 days of customs clearance. Submit the certificates upon passing the tests to complete the import process.
• Vehicle registration: Register your vehicle within 3 working days after receiving all necessary certificates.

In April 2025, Vietnam imported 17,063 vehicle units valued at US$423 million, reflecting a 47.7% increase in volume compared to April 2024. Most imported vehicles were priced between ₫350 million and ₫1.2 billion. Regulatory updates, such as reduced duties under Decree 73/2025, have contributed to this growth.

Staying organized and meeting all deadlines is critical to avoid penalties, which can significantly increase your import costs. Careful planning is key to navigating this detailed process smoothly.

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Technical and Environmental Standards

Before being allowed into Vietnam, all imported vehicles must undergo thorough technical safety and environmental inspections. Once these inspections are successfully completed, importers are issued a certificate confirming the vehicle’s compliance with technical safety and environmental protection standards.

Safety and Emissions Requirements

These inspections play a crucial role in ensuring that vehicles meet the required safety and emissions criteria prior to entering the country.

Electric Vehicle Import Requirements

For electric vehicles, the process remains largely the same as for traditional vehicles. However, there’s one key difference: electric vehicles are not subject to the energy labelling requirement that applies to petrol, diesel, LPG, or NG vehicles. This makes the compliance process simpler for electric models.

Common Problems and Solutions for Importers

Navigating the import process can be tricky, especially after dealing with approval steps and technical standards. Importers frequently encounter obstacles that lead to delays and higher costs. Knowing these challenges and how to address them can make the entire process smoother and less stressful.

Frequent Import Process Problems

Here are some common issues that importers face:

• Documentation errors: Missing certificates, outdated paperwork, or incorrect details can slow things down significantly.
• Regulatory changes: Shifting rules may render previously valid documents or requirements useless.
• Customs delays: Incomplete inspections or port backlogs can lead to extended clearance times and higher costs.
• Hidden fees: Extra inspections, unexpected charges, or currency fluctuations can quickly add up.
• Technical compliance issues: Vehicles that don’t meet Vietnam’s safety or environmental standards may be rejected upon arrival.

How to Import Cars Successfully

To avoid these headaches, here are some practical tips to ensure a smoother import process:

• Work with licensed customs brokers: They can help you avoid documentation errors and speed up the clearance process.
• Prepare documents early: Ensure all certificates are up-to-date, translated into Vietnamese by certified professionals, and properly notarized.
• Plan for unexpected costs: Set aside a contingency budget for surprise fees, storage charges, or currency shifts.
• Inspect vehicles before shipping: Verify compliance with Vietnam’s standards to avoid surprises upon arrival.
• Stay informed about regulations: Keep track of government updates and consult with customs brokers or industry associations regularly.
• Choose reliable shipping and insurance: Protect your investment during transit with the right options.

Problems and Solutions Reference Table

Additional Tips for Success

Keep detailed records of all transactions and communications; this will help resolve issues quickly and make future imports easier. Building strong relationships with customs officials, inspection agencies, and logistics providers can also provide valuable insights and early warnings about potential challenges.

Summary: Car Import Requirements in Vietnam

Importing a car into Vietnam involves navigating taxes, costs, and strict regulations. Taxes include import duties, VAT, and special consumption taxes, with rates depending on the vehicle’s type and origin. Beyond taxes, factor in shipping, insurance, customs clearance, and registration fees. It’s wise to set aside additional funds for unexpected expenses or currency fluctuations.

Vietnam’s regulations for vehicle imports are stringent. Vehicles must be less than five years old, have been registered in their country of origin for at least six months, and have a minimum mileage of 10,000 km. Certain vehicles, like right-hand-drive models, disassembled cars, or heavily modified ones, are not permitted.

Documentation plays a crucial role. Essential documents include the sales contract, registration certificate, and customs declaration. Decree No. 60/2023/ND-CP has simplified customs procedures, especially for unused complete M1 group cars and EU or UK-manufactured components that comply with ECE and EC standards.

Once customs duties are paid, you have three business days to apply for vehicle registration and secure a Certificate of Technical Safety and Environmental Protection. This certificate is required to complete the customs process and finalize the importation.

Thorough planning and strict compliance with these requirements ensure your imported car meets Vietnamese legal standards and is ready for the road.

FAQs

What taxes and fees impact the total cost of importing a car into Vietnam?

The overall cost of bringing a car into Vietnam depends on three key taxes: import duty, special consumption tax, and value-added tax (VAT). These taxes are calculated based on the car’s value and can add significantly to the final price tag.

• Import duty: This is charged on the car’s declared customs value.
• Special consumption tax: This tax is applied to the car’s value, which already includes the import duty.
• VAT: Currently set at 10%, this tax is calculated on the combined total of the car’s value, import duty, and special consumption tax.

Grasping how these taxes work is essential for getting a clear picture of the total cost. For instance, a car with a base price of VND 1,000,000,000 could end up costing much more once these layered taxes are factored in.

What documents do I need to import a car into Vietnam?

To bring a car into Vietnam, you’ll need to prepare several crucial documents to navigate the approval process smoothly. These include:

• Import application form: Often referred to as the car import request form.
• Import license: Issued by the appropriate Vietnamese authority.
• Bill of lading: This acts as proof of the car’s shipment.
• Customs declaration form: Essential for import/export procedures.
• Foreign vehicle registration certificate: Confirms the car’s registration in its country of origin.

Make sure all documents are filled out correctly and submitted on time to prevent any unnecessary delays. Seeking advice from a customs or logistics professional familiar with Vietnam’s regulations can also be immensely helpful.

How do exchange rate fluctuations affect car import costs, and how can you minimize this risk?

Exchange rate changes can have a big impact on the overall cost of bringing a car into Vietnam. If the exchange rate goes up, the price of imported cars can rise too, as converting foreign currency to VND becomes more expensive. This increase can also affect taxes and fees, which are calculated based on the car’s value.

To manage this risk, it’s a good idea to keep an eye on exchange rate trends and plan your purchase when the rates are more favorable. Some importers or financial institutions also provide currency hedging services, which let you lock in exchange rates and avoid surprise cost hikes.

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