The Government will continue to execute Decree 116/2017/ND-CP on automobile manufacture, assembly, imports, maintenance and warranty services, while making conditions favorable for auto firms to ensure their effective operations, said Deputy Prime Minister Trinh Dinh Dung.

Autos are displayed at an expo in HCMC

At a recent meeting on the execution of the decree, the deputy prime minister asked the Ministry of Transport to coordinate with the relevant ministries and agencies to work with automobile manufacturers, assemblers and importers to remove barriers for these firms. Problems beyond the jurisdiction of the ministry should be reported to the prime minister.

Deputy PM Dung also ordered the improvement of the local investment environment. Provisions in the decree that are not in line with international regulations should also be amended.

In addition, the process for evaluating imported cars should be amended to ensure the quality, technical safety and environmental protection value of these cars.

The Ministry of Finance was assigned to work with other relevant ministries and agencies to determine the localization rate of imported vehicles from other ASEAN countries, which are entitled to tax exemptions under the ASEAN Trade in Goods Agreement (ATIGA).

Meanwhile, the Ministry of Industry and Trade will have to team up with the ministries of Transport and Finance to review policies for automobile firms, assess the effects of ATIGA on the local automobile market and report the results to the prime minister in the next quarter.

Since Decree 116/2017/ND-CP took effect on January 1 last year, many automobile traders have seen the decree as an impediment to car imports.

According to the Government, enterprises have misunderstood regulations on vehicle type approval (VTA) certificates. The ministries of Transport and Industry and Trade, as well as other agencies, have now explained the regulations and resolved difficulties for enterprises.

At present, most of the countries exporting cars to Vietnam have issued VTA certificates, so traders in Vietnam can import cars into the country.

According to statistics from the General Department of Customs, Vietnam imported 81,600 vehicles, worth over US$1.8 billion last year, down 16.1% in volume and 19.8% in value over 2017.

Thailand was Vietnam’s largest car exporter, with nearly 55,400 units, valued at US$1.1 billion, followed by Indonesia, with some 17,100 automobiles; Japan, with more than 2,000 vehicles; and China, with 1,600 units.

SGT