BYD Dolphin price drops in Vietnam due to ASEAN tax advantages

The BYD Dolphin electric vehicle has seen a price reduction of 90 million VND in Vietnam after shifting its supply source from China to Thailand. This price drop is driven by tax advantages: vehicles originating from China face a 50% import tax, whereas those produced within ASEAN countries benefit from a 0% tax rate.

While consumers benefit from lower prices, the shift poses challenges for Vietnam's domestic supporting industries. Locally assembled vehicles typically utilize components from Vietnamese enterprises, which currently produce 287 types of parts, including tires, seats, mirrors, and batteries.

With Vietnam projected to import 205,630 completely built-up vehicles valued at $4.74 billion in 2025, the reliance on imports reduces domestic orders. Given current localization rates of 7% to 18%, the potential value of components that could have been sourced from Vietnamese workshops is estimated between $330 million and $850 million annually.