VietNamNet Bridge - Car importers are anxiously awaiting a new rule from the MInistry of Transport.

Under the previous Circular 20, enterprises importing cars with less than nine seats had to show proof that they are authorized dealers for foreign automobile manufacturers, with a certification from a licensed auto maintenance center.

The new legal document compiled by MOT sets more difficult regulations. For example, importers have to submit the original versions of the certificates for quality granted by automobile manufacturers.

These documents can only be obtained by authorized distributors or the manufacturers’ subsidiaries in Vietnam.

Small car dealers cannot get the documents because they buy cars from secondary sales agents or from third countries.

The new legal document compiled by MOT sets more difficult regulations. For example, importers have to submit the original versions of the certificates for quality granted by automobile manufacturers.

Like Circular 20, the legal document, once released, will place difficulties on imports by unauthorized sales agents.

According to Nguyen Tuan from Thien Phuc An Company, in the past, CBU importers only had to make declarations shown in the form provided by the Vietnam Register agency and provide copies of the cars’ technical indicators.

As such, even if Circular 20 with strict regulations is removed, another barrier will prevent unauthorized imports.

In fact, analysts say, there is one way car importers can dodge the regulations. They can buy cars in countries which set higher technical standards than Vietnam, then register cars in the countries. 

After that, they can follow procedures to cancel the car registration to export the cars.

The certificates on registration cancellation can be submitted to the Vietnamese registration agency (instead of the manufacturers’ certificates on quality).

Car importers have voiced their strong opposition against the draft regulation, saying it is just like a barrier for them. In general, manufacturers always have to examine cars thoroughly before letting products go out of factories to be sure products meet national and manufacturers’ standards. Therefore, there is no need to require certificates on quality.

Meanwhile, some experts, affirming the importance of regulations, said the regulations would serve as a technical barrier to ‘filter’ imports. 

Vietnam will have to cut the import tariff to zero percent from 2018, which will pave the way for more cars to enter Vietnam.

According to the General Department of Customs (GDC), Vietnam imported more than 19,700 units in the first quarter of this year, a year-on-year drop of 16.8 percent. Thailand has become Vietnam's leading automobile exporter in the first quarter of this year, with a volume of more than 7,800 units, a 64.5 percent increase compared with the same period last year.


Tran Thuy