The tax was reduced from 40 per cent to 30 per cent under the Asean Free Trade Agreement (FTA) early this year. It will be zero per cent by 2018.

According to statistics from Vietnam Customs, the country imported 8,027 completely built-up units worth $158.4 million in February, increasing by 627 units but reducing by $5.3 million in value.

Of the figure, nearly 3,160 cars came from Thailand, or 43.2 per cent of the country’s total imports, 21 per cent higher than the previous month.

It was followed by the Republic of Korea with 1,444 units and Indonesia with 1,285 units.

India, which was for many months the leader in exporting cars to Vietnam, however, witnessed a decline in February with 718 units. Cars from the South Asian country had the lowest value with an average price of $4,255 each.