Vinh Phuc's tax revenue down as Toyota, Honda import more cars

Major Japanese automakers Toyota and Honda are estimated to have paid VND12,825 billion ($504.4 million) in taxes to the northern province of Vinh Phuc in the first 11 months of this year, down VND1,385 billion or 10% year-on-year.

According to the Vinh Phuc tax department, this has meant that the province’s tax revenue from the foreign direct investment (FDI) sector has gone down 5% year-on-year, at VND15,460 billion ($608 million).

The tax department attributed the result to an increase in imports by both automakers.

Combined sales of the two firms went up 17% year-on-year to 84,411 units, with the number of imported cars seeing a 23% growth.

Meanwhile, the taxable amount on vehicle’s selling prices decreased amid fierce competition in the market.

Overall, in the first 11 months of this year, Vinh Phuc’s tax revenue is estimated at VND22,950 billion ($902.6 million), down 2.3% year-on-year. This is equivalent to 91.7% of the province’s annual target.

Honda now operates three factories in the northern province, including two for motorbikes and one for cars, covering 15 hectares. Its annual output reached 1.75 million motorbikes and 35,000 four-wheel vehicles.

Toyota runs two facilities, with a total capacity of 90,000 vehicles a year.

In November 2024, Tran Duy Dong, Chairman of Vinh Phuc province, urged Toyota and Honda to draft detailed plans to switch their production in Vietnam from petroleum vehicles to hybrid ones, in keeping with the Vietnamese government’s policy of green and eco-friendly production.