VietNamNet Bridge - The Ministry of Transport (MOT) is compiling a legal document which will replace the controversial Circular 20, which bars small automobile importers from entering the market.

A source from the Vietnam Chamber of Commerce and Industry (VCCI) said MOT is drafting a legal document on managing car imports, and once the document is approved, the currently applied Circular 20 issued by the Ministry of Industry and Trade (MOIT) will be removed.

Some days ago, in a report to the Prime Minister, MOIT showed its view about Circular 20 and emphasized that it is necessary to have measures to keep management over the vehicle registration. This aims to be sure that vehicles all can be guaranteed and maintained in accordance with international practice and meet Vietnam’s safety standards.

However, enterprises are worried because MOIT insists on the principle that vehicles must not be registered in Vietnam if they are not warrantied and maintained by manufacturers or authorized companies.

The Ministry of Transport (MOT) is compiling a legal document which will replace the controversial Circular 20, which bars small automobile importers from entering the market.

MOIT has agreed to remove the controversial Circular 20, but wants new requirements set on car importers. If the requirements in the document being compiled by MOT, thousands of privately run car repair shops and garages would face closure.

If everything goes as anticipated, as the source from VCCI commented, the problem will still exist, because after the old business conditions are removed, new conditions will be set. 

Small enterprises will not have opportunities to join the market because of requirements to be set by management agencies.

A car importer in Nghe An province has sent a letter to VCCI President asking for help. The letter wrote that while small enterprises make every effort to do business and create jobs, they meet a lot of barriers.

A car importer describes Circular 20 as a shield that protects big enterprises and keeps small enterprises away from the market. Meanwhile, all enterprises, both and small, have the equal right to join the market.

The car importer warned that if big enterprises are exclusive importers, they will not spend money to make cars, and if so, Vietnam will never have an automobile industry.

“Circular 20 has crushed enterprises like us,” the director wrote.

“What Vietnam has had for its automobile industry over the last 20 years? Vietnamese owned manufacturers like Vinaxuki have died young, while foreign manufacturers tend to import cars for domestic sale rather than organizing domestic production,” he said.

The businessman has called on management agencies to create a level playing field for enterprises from all economic sectors, while the existence of the enterprises will be determined by customers.

Kim Chi