Under the Deputy PM's instructions released on March 16, the Vietnamese car market is forecasted to continue its strong growth, thanks to the high economic growth rate.
One of Vietnam's priorities is the healthy development of the Vietnamese automobile industry.
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In the coming time, one of Vietnam's priorities is the healthy development of the Vietnamese automobile industry, especially a higher localization rate and developing supporting industries with a view to make its own car brand.
However, as Dung stressed, an important task would be the fulfilment of Vietnam's commitment on global economic integration and cooperation, in turn contributing to economic growth and creating jobs.
According to Dung, the government guarantees fair treatment for car manufacturers and assemblers, regardless of whether they are domestic or foreign enterprises. The ultimate goal, thus, is the development of the Vietnamese automobile industry, meeting the market demand and contributing to the coutnry's socioeconomic development.
The mentioned goals, Dung said, should be achieved through the following measures:
- Related government agencies to implement current regulations to control cars' quality, while continuing to provide support for enterprises;
- Supervising imported cars from ASEAN countries in complied with the ASEAN Trade in Goods Agreement (ATIGA);
- Finalizing Decree No.116 and Circular 03 to ensure fair treatment, transparency, and competition in conformity with international practices and commitments.
The Deputy PM instructed the Ministry of Finance to work on relevant tax policies to support the Vietnamese automobile industry.
Car manufacturers and assemblers should pay more attention to the development of supporting industries to make Vietnamese car brands. Enterprises having trouble with the implementation of Decree No.116 and Circular 03 should seek support from the Ministry of Transport or the Ministry of Industry and Trade.
Heated discussions took place in last February at a meeting between representatives from foreign automobile manufacturers and domestic companies on Decree No.116, specifying the regulatory conditions and licenses for automobile manufacturing, assembling, importing, maintenance, and warranty businesses.
At the meeting, foreign companies expressed concern over the Decree's incompatibility with international practices, which they claim interrupts business and has a negative effect on car imports.
Domestic companies, however, claimed the Decree will create fair competition between automobile manufacturers and importers, while at the same time ensuring environmental protection and the safety of customers.
Last year, a total of 272,750 units were sold, down 10% on-year, informed Vietnam Automobile Manufacturers' Association. The sales of passenger cars and commercial and special-use vehicles decreased by 15, 2, and 12%, respectively.
The falling sales were attributed to consumers' waiting for a decrease in automobile prices in early 2018 when the automobile import tariff will slip to 0% as the ATIGA took effect in the beginning of 2018.
