Vietnam will continue its strict implementation of automobile import rules, according to Deputy Prime Minister Dinh Dung, despite the criticisms of foreign carmakers. The policy took effect in January 2018 following the abolition of auto tariffs within the Association of South East Asian Nations.
The strict rules complicate the procedure for auto imports. Importers are required sometimes required to submit quality certification from the country of origin and each lot of imports are also inspected. Mr. Dung is aware that the rules initially cause confusion and he, however, said that many of the issues have been resolved.
According to the Vietnamese government, the rule aims to ensure the origin, quality, and value of the vehicle and often does not come from a state body but an authorized agency or association.
The Vietnamese government plans to continue its implementation of the Decree 116 after its terms and impact were reviewed. Deputy Prime Minister Dung also announced that they are planning to support auto production in the country by removing obstacles which gives hint that they are planning to give incentives for companies that set up manufacturing plants inside Vietnam. According to reports, the country wants its auto industry to produce about 35 percent to 40 percent of auto components by 2020, an increase from its current 10 percent.
According to the Vietnam Automobile Manufacturers' Association, the new-car sales in the country last year increased by 5.8 percent after selling about 290,000 units. Despite the growth in car sales, the volume of imported cars dropped by 6.2 percent to about 73,000. The decrease followed the decision of the automakers to halt shipments to the country in during the first six months of the year because of the implemented restrictions.
The Deputy Prime Minister said that after the decree was imposed, auto trades have begun facing obstacles as they struggle to analyze the regulations. The Vietnamese government, however, assisted the industry by directing the ministries of Transport and Industry and Trade to disseminate information and solve the problems that they are facing.
Minister Dung said that up to now, most countries have provided VTA documents for imported cars into Vietnam. He noted that most cars imported from different markets have not yet met any difficulties and problems. Dung also calls for the assistance of relevant sectors in promoting the supporting industries through policy suggestions more importantly for large enterprises. Mr. Dung instructed the Ministry of Transport to collaborate with concerned ministries and branches to assist the auto industry.
