Govt’s new decree removes barriers to automobile imports

Automobile importers in Vietnam will no longer have to obtain a Vehicle Type Approval (VTA) certificate from authorities in exporting countries, making it easier for them to import cars into the country.

Govt’s new decree removes barriers to automobile imports

Cars on display at an international auto show taking place in Vietnam in 2017. Automobile importers in the country will no longer have to obtain a VTA certificate - PHOTO: VNA

The Government on February 5 issued Decree 17/2020 on adjustments and supplements to Government Decree 116/2017 stipulating regulations on car manufacture, assembly, imports and warranty services.

Many car importers in the country had struggled to obtain the VTA certificate by end-2017, leaving the local automobile import market in limbo. The Thai and Indonesian governments also had to grapple with the issue as they did not want to lose automobile export revenues earned from the Vietnamese market. The two countries earlier had not granted this kind of certificate.

Aside from eliminating the VTA requirement, Decree 17 has relaxed its rules on clearance procedures for imported cars.

In particular, the model of each type of car will have to undergo emissions, quality and technical safety tests at least every three years.

Earlier, under Decree 116, one sample would be chosen from each batch of imported cars for the tests. The inspection was then repeated for the following shipments, even with the same car models.

 

Overall, the new rules in Decree 17 will help reduce the amount of time needed for the clearance process and lower the costs for inspections, testing and storage for automobile importers.

According to a representative of a German automobile operator in Vietnam, the removal of the VTA requirement and other rules in Decree 17 did not leave any major impact on their business but helped reduce their clearance time.

Besides this, another rule in the new decree stipulates that automobile importers will have their import business licenses revoked or suspended for six months if they are found importing cars with GPS maps that violate Vietnam’s sovereignty. After six months, the firms must show they have addressed these violations and carry out the required procedures to apply for new licenses.

Last year, some models of cars imported from China to Vietnam were discovered with GPS maps featuring the illegal nine-dash line infringing on Vietnam's sovereignty, sparking public concern. The new rule is expected to act as a deterrent to others and prevent repeat occurrences of this violation. SGT

Material autonomy key for Vietnam to fully exploiting EVFTA

Material autonomy key for Vietnam to fully exploiting EVFTA

Textile stocks have been on an temporary upswing thanks to the recent ratification of the EVFTA but textile enterprises still face difficulties due to heavy dependence on imported raw materials and reduced demand worldwide.  

Favourable policies expected to drive auto market growth

Favourable policies expected to drive auto market growth

The automobile market is expected to boom this year as the Government mulls a number of favourable policies to help reduce costs, improve demand and increase output.

 
 

Other News

.
Vietnam’s electric vehicle index announced for first time
Vietnam’s electric vehicle index announced for first time
BUSINESSicon  15/10/2021 

Vietnam’s electric vehicle index (EVI) has been announced for the first time, aiming to help enterprises in the value chain make decisions on production and business.

Remittances steady as lenders apply fresh transfer services
Remittances steady as lenders apply fresh transfer services
BUSINESSicon  15/10/2021 

Remittance flows from Vietnamese expatriates working abroad are predicted to remain resilient throughout the rest of the year, with the country’s central bank keeping its policy steady for now.

Haiphong to build free trade zone
Haiphong to build free trade zone
BUSINESSicon  15/10/2021 

The northern port city of Haiphong envisions setting up an inner-city free trade zone to drastically accelerate the city’s development.

Next six months vital for economic recovery: experts
Next six months vital for economic recovery: experts
BUSINESSicon  15/10/2021 

PM Pham Minh Chinh has chaired a webinar discussing Vietnam's measures in boosting post-pandemic economic recovery, adapting to the COVID-19 pandemic, overcoming economic disruption and strengthening locality-to-locality connectivity.

Govt projects GDP growth at 6%-6.5% next year
Govt projects GDP growth at 6%-6.5% next year
BUSINESSicon  15/10/2021 

The Government has targeted the country’s gross domestic product (GDP) growth at 6%-6.5% in 2022 despite the lingering challenges caused by the Covid-19 pandemic. 

Domestic groups move over to buyer’s side in M&A deals
Domestic groups move over to buyer’s side in M&A deals
BUSINESSicon  15/10/2021 

Vietnamese groups are becoming more active in acquiring other businesses, while overseas investors are seeing themselves hindered amid continued travel restrictions.

Bad debt trading platform to start operation
Bad debt trading platform to start operation
BUSINESSicon  15/10/2021 

The bad debt trading floor of Vietnam Asset Management Company (VAMC) is set to begin operation today (October 15).

More than $10 billion per year to develop the power sources and grid in the 2021-2030 period
More than $10 billion per year to develop the power sources and grid in the 2021-2030 period
BUSINESSicon  15/10/2021 

The demand for investment capital for the development of power sources and grids averages US$10-11.5 billion per year by 2030.

IMF forecasts Vietnam's GDP to see highest growth in ASEAN 5 group
IMF forecasts Vietnam's GDP to see highest growth in ASEAN 5 group
BUSINESSicon  15/10/2021 

The International Monetary Fund (IMF) has forecast Vietnam’s GDP to grow at around 3.8% this year, higher than that of its regional peers, Malaysia, Thailand, the Philippines, and Indonesia.

VIETNAM BUSINESS NEWS OCTOBER 15
VIETNAM BUSINESS NEWS OCTOBER 15
BUSINESSicon  15/10/2021 

MoIT vows support for Samsung, suppliers to maintain supply chain

One-year EVFTA: major European investors pour billions of dollars into Vietnam
One-year EVFTA: major European investors pour billions of dollars into Vietnam
BUSINESSicon  15/10/2021 

The Government has reported to the National Assembly about the implementation of EVFTA (EU-Vietnam FTA) over the last year.

VN reports public debt reaches VND3.7 quadrillion, plans to borrow VND571 billion next year
VN reports public debt reaches VND3.7 quadrillion, plans to borrow VND571 billion next year
BUSINESSicon  15/10/2021 

The Government’s report says that if the GDP in 2021 is below expectations, this will affect state budget overexpenditures as well as the national public debt and foreign debt safety indexes.

Real estate market: regulations inconsistent, market in deadlock
Real estate market: regulations inconsistent, market in deadlock
FEATUREicon  15/10/2021 

Real estate firms are looking forward to a new document to settling legal bottlenecks which have caused the property market to come to a standstill for the last two years.

VN businesses prepare to weather the storms of Covid, adapt to new normal
VN businesses prepare to weather the storms of Covid, adapt to new normal
FEATUREicon  15/10/2021 

All businesses have to struggle hard to survive the pandemic. However, they are keeping calm and optimistic, because the ‘alluvium will come after the floods’.

Curbs fail to faze South Korean M&A
Curbs fail to faze South Korean M&A
BUSINESSicon  14/10/2021 

According to data from MergerMarket, which is a business development tool designed specifically for the M&A sector, South Korean investors have carried out 69 M&A deals in Vietnam since 2005, with a total value of $5.1 billion.

Inconsistencies deter power plan feasibility
Inconsistencies deter power plan feasibility
BUSINESSicon  14/10/2021 

Power source development in recent years has been at odds with load distribution, and many coal-fired power plants expected to operate in the last five years are behind schedule.

Vietnam vows to stamp out unregulated fishing
Vietnam vows to stamp out unregulated fishing
BUSINESSicon  14/10/2021 

The Vietnamese government is doing its utmost to prevent illegal, unreported, and unregulated fishing practices, helped along by moves in Europe to remove warnings on the country’s activities.

Gigantic lifeline en route for essential businesses
Gigantic lifeline en route for essential businesses
BUSINESSicon  14/10/2021 

In a bid to help the country recover after the economy grew at a very low level in the third quarter, a huge financial support package is to be offered to enterprises whose performance is a backbone of economic growth.

Bank loans rise despite pandemic
Bank loans rise despite pandemic
BUSINESSicon  14/10/2021 

Despite being strongly affected by the COVID-19 pandemic, bank loans in the first nine months of this year kept rising compared to the same period last year, deputy governor of the State Bank of Vietnam (SBV) Dao Minh Tu said.

VIETNAM BUSINESS NEWS OCTOBER 14
VIETNAM BUSINESS NEWS OCTOBER 14
BUSINESSicon  14/10/2021 

Ministry of Transport agrees to resume two more domestic air routes

 
 
 
Leave your comment on an article

OR QUICK LOGIN