High safety risks for buyers of smuggled electric bicycles

Smuggled low-quality components in electric bikes pose high risks for users in traffic and adversely affect domestic production.

With a high annual growth rate of 30 percent and sale of nearly 1 million products a year, the electric bicycle market is lucrative in the eyes of investors. Many institutions and individuals illegally import and counterfeit these products for domestic sale to seek profit.

High safety risks for buyers of smuggled electric bicycles

A representative of a domestic electric bicycle manufacturer estimates that 90 percent of electric bicycles and bicycle components available in the market lack clear origin. The current regulations do not require bicycle drivers to register to get license plates, so bicycle sellers can easily fool buyers.

Counterfeited electric bicycles with no clear origin all have a design and appearance very similar to original products, which makes it difficult for buyers to differentiate counterfeited and original products, according to Le Thanh, the owner of an electric bike retail chain.

Bicycle components are smuggled to Vietnam across border gates. After they are assembled at workshops, they are carried to cities and provinces throughout the country for consumption.

They pose high risks because of the low quality of components which do not undergo any quality inspection by state management agencies.

“The products have malfunctions regularly, and the life is short. Besides, there are safety problems with brakes and steering systems. The bicycles degrade rapidly after a period of use,” Thanh said.

Convenient, easy to use, economical and friendly to the environment, electric bicycles are still not favored by Vietnamese, mostly because users have doubts about the quality of electric bikes.

Smuggled low-quality bikes are not only a threat to authentic manufacturers, but also the whole industry. The lack of transparency in quality and prices causes a big loss of revenue to the state budget.

 

Declining to give an exact number, bike manufacturers said with hundreds of thousand of uninspected bikes selling ever year, the loss of revenue is up to VND1 trillion.

Meanwhile, an expert said his biggest concern is that low-quality electric bikes are a danger to the environment.

Electric bicycles run on a battery. Batteries contain lead, which is listed as hazardous waste. Under current regulations, manufacturers have to take the responsibility of collecting and treating the products they sell.

The batteries from products with unclear origin are not collected properly. Users tend to bring bicycles to small shops to have the batteries changed.

Some shops even advertise that bicycle users can buy batteries and change them at home. This causes serious consequences to the environment. 

Hai Nam

Smuggled electric bicycles, bicycle components dominate market

Smuggled electric bicycles, bicycle components dominate market

About 700,000 electric bicycles and 50 cc motorbikes are sold every year, but analysts believe the real figure is actually 1 million.

VN cities needs strict measures to persuade residents to abandon old polluting motorbikes

VN cities needs strict measures to persuade residents to abandon old polluting motorbikes

Old vehicles are one of the major reasons behind the serious air pollution in urban areas.

 
 

Other News

.
Recovery continues
Recovery continues
BUSINESSicon  15/11/2020 

As opposed to that of supply, the recovery of demand remains weaker, which means that the recovery of growth in the coming time will depend largely upon whether consumers can bolster their purchasing power

Gov’t orders solutions to support rice exporters to EU
Gov’t orders solutions to support rice exporters to EU
BUSINESSicon  15/11/2020 

The Government has directed the Ministry of Industry and Trade to coordinate with other relevant agencies to support local enterprises exporting rice to the European Union (EU) to make the most of EVFTA,

Retail spaces left empty as shops go online
Retail spaces left empty as shops go online
BUSINESSicon  15/11/2020 

Although Vietnam has managed to effectively contain the Covid-19 outbreak, many unsuccessful shops have shut down, as retailers have opted to go online to reduce operation costs, with the trend expected to grow further in the coming time.

Amid global uncertainty, even traditional markets may be vulnerable: experts
Amid global uncertainty, even traditional markets may be vulnerable: experts
BUSINESSicon  15/11/2020 

It has been nearly a year since the first coronavirus-infected case was reported in China. There are now nearly 52.5 million infection cases worldwide and more than 1.29 million people have died of the disease.

New decree to prevent transfer pricing, limit thin capitalisation
New decree to prevent transfer pricing, limit thin capitalisation
BUSINESSicon  14/11/2020 

The Government’s recently-issued Decree 132/2020/NĐ-CP would help prevent transfer pricing and limit thin capitalisation to develop a healthy investment market, Deputy Director of the General Department of Taxation Dang Ngoc Minh said.

Proper mechanism needed to attract investors to PPP projects
Proper mechanism needed to attract investors to PPP projects
BUSINESSicon  14/11/2020 

A proper mechanism is needed to attract investors to infrastructure projects implemented following the public-private partnership (PPP) model, experts have said.

Oil fields becoming depleted, difficulties lie ahead
Oil fields becoming depleted, difficulties lie ahead
FEATUREicon  14/11/2020 

Oil and gas companies are struggling to cope with falling prices, oil field depletion, and difficulties in seeking new fields.

Business support packages in the frame for maximum impact
Business support packages in the frame for maximum impact
BUSINESSicon  14/11/2020 

With many businesses becoming gradually exhausted and in critical need of state support, many National Assembly members have asked the government to apply feasible solutions to lift them out of woes.

Curbed inflation eases concerns
Curbed inflation eases concerns
BUSINESSicon  13/11/2020 

The big rise in public investment disbursement will not cause high inflation this year due to a decline in public and business demand and oil price, as well as government efforts to stabilise prices.

Focus on efficiency for new incentives
Focus on efficiency for new incentives
BUSINESSicon  13/11/2020 

A list of sectors that could benefit from special tax incentives in Vietnam would be utilised to grow enthusiasm for overseas investors and, as a result, help to contribute towards luring more high-quality foreign direct investment.

Pressure on the Finance Minister
Pressure on the Finance Minister
FEATUREicon  13/11/2020 

As the holder of the keys of the national treasury, Finance Minister Dinh Tien Dung is facing great pressure.

Demographics, rising income, geopolitical shifts to drive ASEAN’s growth
Demographics, rising income, geopolitical shifts to drive ASEAN’s growth
BUSINESSicon  13/11/2020 

10 ASEAN member states are on the cusp of a tremendous leap forward in socio-economic progress and their growth will be propelled by four mega-forces, including favourable demographics, rising income levels, geopolitical shifts and digital tailwinds.

Local firms told to prepare for RCEP export opportunities
Local firms told to prepare for RCEP export opportunities
BUSINESSicon  13/11/2020 

Vietnamese businesses should prepare to export their products to other ASEAN countries ahead of the possible signing of the Regional Comprehensive Economic Partnership (RCEP) this week. 

Pork prices drop after country flooded with imports
Pork prices drop after country flooded with imports
BUSINESSicon  14/11/2020 

Vietnam spent VND5 trillion ($214.78 million) to import pork in the first nine months of the year, leading to a drop in prices.

Hanoi authorities to inspect farmstay projects, land violations
Hanoi authorities to inspect farmstay projects, land violations
BUSINESSicon  13/11/2020 

The Hanoi People’s Committee has assigned the Department of Natural Resources and the Environment to set up a taskforce to inspect farmstay projects and deal with land law violations.

Daily visits to local e-commerce sites top 3.5 million: VECOM
Daily visits to local e-commerce sites top 3.5 million: VECOM
BUSINESSicon  12/11/2020 

Online shopping traffic in Vietnam so far this year rocketed over 150 percent against a year earlier, with daily visits to e-commerce sites growing to 3.5 million, 

RCEP - A new boost for regional enterprises
RCEP - A new boost for regional enterprises
BUSINESSicon  12/11/2020 

The Regional Comprehensive Economic Partnership (RCEP) agreement, expected to be signed on November 15 within the framework of the 37th ASEAN Summit in Hanoi, 

Enterprises need to be pro-active during the pandemic
Enterprises need to be pro-active during the pandemic
BUSINESSicon  13/11/2020 

Nguyen Bich Lam, former director general of the General Statistics of Vietnam, talks on what Vietnamese enterprises need to do to maintain their business production during the COVID-19 pandemic.

New regulations on cap on loan interest deductions released
New regulations on cap on loan interest deductions released
BUSINESSicon  14/11/2020 

The regulations on the cap on loan interest deductions will cause enterprises to face difficulty as they have small capital and operate mostly with borrowed money.

Black credit leading people to dead end, with no escape from debt
Black credit leading people to dead end, with no escape from debt
BUSINESSicon  12/11/2020 

Covid-19 has caused many people to lose jobs and has paved the way for black credit to emerge.

 
 
 
Leave your comment on an article

OR QUICK LOGIN