Under the growing impacts of the pandemic, market demand is forecast to plunge, while oversupply and the burden of liquidating inventories would lead to lower selling prices.

The move would help support the development of local supporting industries, particularly the automobile manufacturing and assembling in the 2019 – 2023 period.

In July, Vietnam imported nearly 4,800 cars worth US$108 million, up 34% month-on-month in volume and 10% in value.

The ASEAN Trade in Goods Agreement (ATIGA) is a major driving force that is aimed at facilitating trade among country members.