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Sunday, January 17, 2021

Vietnam to increase imports of luxury goods from Europe

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HCMC – Vietnam will increase the imports of luxury goods from Europe in the next three years to meet the high demand from local and international tourists, making for a more balanced two-way trade instead of a trade surplus for Vietnam as is the case at present.

Addressing a seminar titled “HCMC Customs Department and enterprises together implement the European Union-Vietnam Free Trade Agreement” on October 6, Johnathan Hanh Nguyen, president of Imex Pan Pacific Group (IPPG) said the group plans to import luxury goods worth US$3-5 billion for three non-tariff zones that will be operational in Phu Quoc, Khanh Hoa and Danang in the next three years.

“We previously imported goods worth US$100 million. We sold 50% of them and re-exported 50%. Due to high tariffs, we were not able to offer discounts. Vietnam imposes an import tax of 30% and value-added tax of 10% on imports, while Singapore and France impose zero tariffs. This is the reason why non-tariff zones in these countries attract many customers,” he noted.

At present, 80% of IPPG’s workload is related to Europe, with the group importing a large number of luxury goods for distribution in the domestic market.

With years of experience working with European partners, Nguyen said Vietnamese enterprises should be cautious because Europe is a developed market with strict requirements for stability. They should not arbitrarily adjust prices except in case of exchange rate fluctuations.

In addition, Vietnamese enterprises must be responsible for taking care of the livelihoods of the employees and contributing to the community.

By Tam An

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