Vietnam Tightens Imports to Curb Inflation

Vietnam has recently applied automatic import licenses on automobile parts, vehicles and mobile phones in a move to tighten the imports to fight inflation, according to local newspaper Vietnam News on Thursday.

Automatic import licenses enable the quantities of imported goods to be monitored. The Ministry of Industry and Trade can stop imports as soon as they pass a set limit.

Now, importers of automobile parts, vehicles and mobile phones must pay import taxes as soon as the customs for the goods are cleared, not 30 days later as previously.

Vietnam imported 42,000 completely-built automobiles, mainly cars, valued at 742.1 million U.S. dollars in the first half of this year, recording respective year-on-year surges of 413.9 percent and 354.5 percent, according to the country's General Statistics Office.

It also spent 855.9 million dollars importing automobile parts and components for assembly.

Vietnam imported 273 million dollars worth of mobile phones in the first quarter of this year, statistics from the country's Ministry of Industry and Trade showed. It raised import tax rate on mobile phones to eight percent last month from previous five percent.

Vietnam is likely to post increase of 25.5-30 percent in consumer price index (CPI), its inflation rate, in 2008, the statistics office said, noting that CPI in the first half of this year rose 20.34 percent against the same period last year.