April 30, 2026 in Ho Chi Minh City, Vietnam — Vietnam imposes some of the world's highest import duties on vehicles: 70-78% on CBU imported cars, making imported vehicles extremely expensive. A Toyota Fortuner imported from Thailand at VND 600 million carries VND 450+ million in import taxes alone. Locally assembled vehicles from CKD plants offer significant savings. Combined with excise tax, VAT, and luxury tax, Vietnam is one of the most expensive markets for car ownership in Southeast Asia.
Vietnam Vehicle Tax System Overview
Vietnam taxes vehicles through multiple layers:
- Import duty: 70-78% on CBU imported vehicles
- Excise tax: 10-15% depending on engine size
- VAT: 10% on total including all taxes
- Luxury tax: Additional 15-70% on vehicles above VND 1.5 billion
- Registration fee: VND 20 million one-time
Import Duty: 70-78% on Foreign Vehicles
Vietnam's import duty structure for passenger vehicles:
| Vehicle Type | Origin | Import Duty |
|---|---|---|
| Sedan/SUV (up to 2,500cc) | Non-ASEAN | 70% |
| Sedan/SUV (above 2,500cc) | Non-ASEAN | 78% |
| Sedan/SUV | ASEAN (ATIGA) | 0% |
| CKD assembled in Vietnam | Any | 0% |
Most Japanese and Korean brands assemble in ASEAN countries (Thailand, Indonesia) to benefit from the ATIGA zero-duty agreement. Chinese-brand EVs face 78% import duty plus luxury tax considerations.
Excise Tax: 10-15% by Engine Category
Vietnam's excise tax on passenger vehicles:
| Engine Capacity | Excise Rate | Example on VND 500M car |
|---|---|---|
| Up to 2,000cc | 10% | VND 50 million |
| 2,001-3,000cc | 15% | VND 75 million |
| Above 3,000cc | 15-20% | VND 75-100 million |
Luxury Tax on High-Value Vehicles
Vietnam's luxury tax (thuế xa xỉ) applies to vehicles above VND 1.5 billion:
| Vehicle Price | Luxury Tax Rate |
|---|---|
| VND 1.5-3 billion | 15% |
| VND 3-6 billion | 30% |
| Above VND 6 billion | 50-70% |
A Mercedes S-Class priced at VND 4 billion pays VND 1.2 billion in luxury tax alone — 30% of the vehicle's price.
Total Tax on Imported vs Local Vehicles
| Vehicle (VND 600M base) | Import Duty (70%) | Excise (10%) | VAT (10%) | Total Tax |
|---|---|---|---|---|
| CBU from Japan | VND 420M | VND 60M | VND 108M | VND 588M |
| CKD assembled locally | VND 0 | VND 60M | VND 66M | VND 126M |
A locally assembled vehicle costs VND 462 million less in taxes than the same model imported from Japan — over 40% of the base price saved.
Registration and Annual Costs
| Cost Item | Amount | Notes |
|---|---|---|
| One-time registration | VND 20 million | Paid at first registration |
| Annual road maintenance fee | VND 2-3 million | Per year |
| Compulsory insurance | VND 3-5 million | Mandatory third-party |
| Voluntary insurance | VND 8-15 million | Comprehensive |
| Annual maintenance | VND 15-25 million | Service, tires |
Conclusion
Vietnam's vehicle tax system is among the most restrictive in Southeast Asia, with 70-78% import duty on non-ASEAN vehicles combined with excise tax, VAT, and luxury tax. A VND 600 million imported car carries VND 588 million in taxes — nearly 100% of its base value. Locally assembled vehicles (CKD) offer massive savings. Luxury vehicles above VND 1.5 billion face additional progressive luxury tax. Use our Vietnam Car Tax Calculator for exact costs.
Disclaimer: Tax rates based on General Department of Vietnam Customs and Ministry of Finance data as of April 2026. Confirm current rates with local authorities before purchasing.
Official Resources: Vietnam Customs | Ministry of Finance Vietnam