Ministry further restricts luxury imports
QĐND - Wednesday, January 18, 2012, 19:51 (GMT+7)
The Ministry of Industry and Trade will further restrict the import of luxury goods this year in a move to keep the trade deficit at roughly 13 billion USD.
Products subject to import restriction will include consumer goods, motorbikes, and vehicles with fewer than nine seats. The ministry has said it will try to limit these types of goods to 5.4 percent of the country's total import value, roughly 6.6 billion USD.
Imports of precious stones and iron, as well as components of cars and motorbikes will also be kept under 5.5 percent (8.7 billion USD).
The ministry said it will create favourable conditions for the importation of materials and parts to be used in local production. It estimated the imports will cost roughly 100 billion USD, up 14 percent over last year.
However, the ministry promised it will work with other relevant ministries to improve current regulations and issue more incentives to encourage investment in local substitutes.
It will also ask relevant ministries and agencies to restrict investment in non-production sectors. State-owned groups, corporations and companies will be required to establish local production lines in a timely manner.
The ministry plans to speed development of areas dedicated to the processing of petroleum, coal, feed, fertiliser, chemicals, plastics, textiles, accessories, footwear and steel, which are currently all products with high import values.
The country this year is expected to spend roughly 121.8 billion USD on imports, up 15.2 percent over last year.