VietNamNet Bridge – The policy to restrict luxury imports and the continued decreases of the iPhone 4 prices have put big difficulties for mobile network operators – the official distributors of Apple’s products.

VinaPhone and Viettel, the two biggest telecom companies in Vietnam, have confirmed that they have not completed the procedures for importing Apple’s products. According to a new decision released by the Ministry of Industry and Trade, they still need to obtain the procuration granted by the manufacturer Apple, which has the certified signature of the local authorities and Vietnamese Embassy in the country.

“It is possible that in the next one month, we would not be able to bring any more consignment of iPhone 3GS and iPhone 4 to Vietnam because we have not completed necessary procedures,” a source from VinaPhone said.

According to the VinaPhone’s senior executive, the Ministry of Industry and Trade (MOIT) has released the Document No 197; which says that from June, mobile phone importers have to satisfy two new requirements. They have to present more documents to customs agencies to get imports cleared. Also, mobile phones can be only carried to Vietnam by sea.

Regarding the sale prices of iPhone products, the executive said that the works relating to the procedures, such as obtaining the certificates from Vietnamese diplomatic agencies in the country, or putting products into containers and choosing shipping firms are undertaken by the partner – Apple. All those kinds of expenses will be counted on the cost prices. As such, it is sure that the official distributor will not be able to sell iPhone products at low prices.

“This is quite a new regulation and we are meeting some difficulties in the preparation. We will not have goods to launch into the market in the next one month at least. Meanwhile, we previously planned to import 2000-3000 iPhone 4 more in June,” the source said.

A representative from Viettel also said that iPhone distributors have no other choices than following the new regulation. He said it is not difficult to get the required documents, but it will take time.

Meanwhile, an import consignment only comprises of hundreds or thousands of products. Even with the low amounts of products, importers will still have to use the whole container to carry. As a result, the expenses importers have to pay will be high. Therefore, he fears that the prices of iPhone 4 products to be distributed by official authorized distributors may not be more competitive than the prices on free markets.

Experts say that the Apple’s products sold by official distributors are losing their competitiveness when private traders have been lowering the sale prices continuously. The products available on the free market are the ones carried to Vietnam cross the border gates by travelers or the people entering the country, and the ones imported by private companies from different foreign sources.

Currently, the versions of iPhone 4 sold by VinaPhone and Viettel now have the sale prices nearly the same with the prices of products available on the free market. Meanwhile, those, who purchase products from official distributors, now have to purchase the associated service packages, thus making the purchase procedures more complicated.

“The only competitiveness of the products from official distributors is the manufacturer’s maintenance policy,” an expert noted.

The expert went on to say that in June, the products distributed by private enterprises will be the only players on the market, when both VinaPhone and Viettel, due to the new regulation, still cannot bring iPhone 4 to the Vietnamese market.

While official distributors are moving heaven and earth to follow necessary formalities, private distributors have been lowering the sale prices of iPhone 4 in order to dominate the market.

At present, black iPhone 4 16GB is offered to sell at 14.5 million dong, while iPhone 4 32GB is priced at 15.2 million dong. White iPhone 4s are selling at 16.3 and 17.5 million dong for 16GB and 32GB versions, respectively. The prices have been described as very competitive with the products of official distributors.

Telecom companies all have expressed their worry about the hard pressure in the competition with the products distributed by private companies. They said that the more complicated procedures and higher expenses have made the cost prices of iPhone 3GS and iPhone 4 more expensive.

“We have reported the current situation to Apple, so that the manufacturer can apply reasonable policies to tighten the procedures for purchasing iPhone 4 and iPhone 3GS in order to restrict the imports from unofficial channels,” an executive said.

In the latest news, Deputy Minister of Industry and Trade, Nguyen Thanh Bien has said that the ministry is reconsidering the new regulation on required documents stipulated in the Document no 197. The notice has been released after EuroCham sent a document to the ministry, expressing its disagreement with the new regulation.

VNE