Lexus ES prices in Vietnam cut by $10,000 following new import tax policy

The price cuts bring the ES 250 down to VND2.36 billion ($91,000) and the ES 250 F Sport to VND2.45 billion ($94,200), while the hybrid ES 300h remains unchanged at VND3.14 billion ($121,000).

The price update, though not publicly announced by Lexus, has been reflected on the official Lexus Vietnam website.

Sales representatives attributed the drop to the Vietnamese government’s Decree 73, issued on March 31 this year, which lowers MFN (Most Favored Nation) import tax rates applied to vehicles imported from WTO member countries.

As per the decree, import tariffs were reduced for three vehicle categories, including passenger vehicles with shared luggage compartments, sports cars with engine capacity from 2,000 to 2,500 cc, and four-wheel drive vehicles.

The MFN import tax rates dropped from 45-64 percent to 32-50 percent, making several imported car models more competitively priced in Vietnam.

In the luxury sedan segment, the Lexus ES competes with the BMW 5-Series (VND2.589-3.099 billion, or $99,500-119,000) and the Mercedes-Benz E-Class (VND2.099-2.950 billion, or $80,700-113,400).

With the new pricing, the ES now starts lower than the BMW 5-Series and narrows the price gap with the E-Class.

However, the E-Class has seen deep discounts of up to VND700 million ($27,000) at dealerships for 2023 units, though availability is limited.