Vietnam eases grip on car import
The Hanoitimes - As Vietnam is deepening global economic integration, competition is inevitable, which leads to the government's decision to ease restrictions on car import.
The Vietnamese government took a significant step in easing restrictions on car import after removing the requirement for vehicle type approval (VTA).
The move is regulated in Decree No.17, which was issued on February 5 to revise a number of clauses in Decree No.116 -- effective in 2017 -- regulating conditions and licenses for automobile manufacturing, assembling, importing, maintenance, and warranty businesses.
VTA was the main restriction leading to a plunge in the number of imported cars to Vietnam from late 2017 to early 2018 as countries with large volumes of car shipments to Vietnam, including Thailand and Indonesia, do not grant such a certification.
In addition to removal of VTA requirement, Decree No.17 also simplifies customs clearance process for imported cars by reducing the frequency for quality control process for shipments of the same car models. The move would help reduce time for customs clearance and expenses for car imports.
Decree No.116 was considered a non-trade barrier to control the number of cars imported into Vietnam, especially after the ASEAN Trade in Goods Agreement (ATIGA) took effect in the beginning of 2018, eliminating automobile import tariffs.
However, as car importers started getting VTAs, the number of imported cars into Vietnam has risen sharply, leading to fierce competition between domestically-assembled car producers and importers.
Over the past few years, the Vietnamese government has been providing supportive policies for the development of the domestic automobile industry. However, as the country is further integrating in global economy, competition is inevitable and Decree.116 could only restrict the wave of imported cars in a short period of time and was not a long-term solution.
- How significant is Vietnam-US oil and gas cooperation?
- Samsung committed to supporting Vietnam enterprises joining global value chains
- 5 factors making ABA the most prestigious event for ASEAN enterprises
- Record high foreign reserves demonstrates Vietnam economic resilience: WB
- Climate change interrupts operations of half of Vietnamese enterprises
- Electricity demand in Vietnam forecast to grow by 9% from 2021 onwards: Fitch
- Underdeveloped technological base holds back Vietnam’s development: Minister
- Fitch affirms state-run PetroVietnam's rating at BB with stable outlook
- Vietnam GDP growth in 9-month period estimated at 1.76%
- Singapore-based firm seeks long-term contract for LNG supply in Vietnam
Foreigners to Vietnam required to pay quarantine and testing fees
Lawfare in the South China Sea weighs on with EU Three rejection
How significant is Vietnam-US oil and gas cooperation?
Hanoi authorities to conduct public satisfation survey
Apple partner Pegatron mulls US$1-billion investment in hi-tech projects in Vietnam
Hanoi’s weekend pedestrian streets allowed to reopen from September 18
European investors propose US$1 billion logistics project in Vietnam
Vietnam says ASEAN doesn’t want to get trapped between competition of major powers
Vietnam launches advisory message to prevent Covid-19 spread