Two new scenarios for imported cars


If Decree 116 is loosened, imported cars will be reduced by hundreds of million dong each.

It was thought that importing cars would still face many difficulties, recently, there have been positive signals from the Ministry of Transport (MOT).

New plan

The Ministry of Transport has just sent an official letter to the Government Office on the implementation of Decree 116/2017 and Circular 03/2018 regarding imported cars. In this document, the Ministry of Transport gives two options to amend the regulations that are tightening imported cars to Vietnam.

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In plan 1, the Ministry of Transport proposes to absorb all recommendations of US and Japanese car manufacturing and assembling enterprises (enterprises), etc. At the same time, it is requested by the Government to direct the Ministry of Industry and Trade to lead and coordinate. with ministries and agencies to amend the contents of Decree 116/2017.

Specifically, removing the procedure for type quality certificate (GCN), modifying the inspection method for each batch, amending the regulation that the test track must have a minimum length of 800 m to facilitate ventilation for car import.

Recently, imported CBU cars are scarce, prices are increasing due to problems with Decree 116/2017 and Circular 03. Photo: Quang Huy.

These are procedures that have made it difficult for businesses for a long time. For example, importers cannot obtain a car type quality certificate because many countries do not issue it. This means that it is impossible to import cars, making imported cars scarce and prices soaring.

In parallel with the above proposal, the Ministry of Transport also proposed amending Circular 03/2018 in the direction: Abolishing some procedures for GCN components for mirrors, tires, glasses, lights; The review simplifies the process and the procedures further to suit, facilitating the import of cars.

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However, in option 2, the Ministry of Transport proposed that in the immediate future it is necessary to continue strictly complying with Decree 116 and Circular 03 for a while. If there are really inadequacies as reflected by enterprises, the Government shall direct the ministries to amend and supplement.

“Because car lots are still imported in March 2018, it proves that the regulations do not cause difficulties for importers. On the other hand, enterprises cannot import a small quantity of goods, but each shipment imports at least hundreds of vehicles, so taking a sample of a car in the imported shipment for inspection does not incur significant costs. tell import enterprises “- Ministry of Transport argued.

If untied, car prices will plummet

Before the two plans of the Ministry of Transport, Ms. Nguyen Thi Hien, in charge of Toyota’s used car system, evaluated: Amending Decree 116 and Circular 03 under plan 1 not only helps businesses reduce costs. but also to facilitate the import of cars.

Discount more than 50%

According to the Vietnam Automobile Manufacturers Association, by the end of February, 12,394 vehicles were sold, down 52% compared to January and 29% lower than the same period last year.

“At that time, many imported cars were imported, the budget increased revenue, not a shock like recent times. Evidence of tightening car imports makes the budget decrease by about 2,000 billion VND in the first two months of 2018 compared to the same period last year ”- Ms. Hien cited.

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Sharing the same point of view, the representative of Hien Toyota dealership system in District 1, Ho Chi Minh City also said: “If the relaxation of import conditions helps reduce costs and does not waste time waiting for the inspection, the price of each The car definitely drops further. For example, at present, car models entitled to 0% import tax from Thailand will reduce the price of about 200 million VND / vehicle, if modified in the direction of loosening regulations on inspection of each shipment, the test track of the car price can be additional 60-70 million / car reduction. Thus, each imported car can be reduced by nearly 300 million VND ”- Ms. Hien analyzed.

Mr. Tran Tan, the director of a genuine car import and distribution company in Ho Chi Minh City, supported the plan 1 that the Ministry of Transport offered because it helped importers to reduce huge costs. On the contrary, if the second option is to continue to tighten the import, it will continue to make it difficult for cars.

Mr. Tan analyzed: “If we follow the plan 2, the importer will not only pay for the inspection fee but also the cost for storage, storage, and transportation of vehicles. That is not to mention having to buy insurance, then labor costs, management, the time businesses have to wait for inspection results. The cost for each shipment that businesses have to spend for these items is at least 5,000-10,000 USD, which increases the price of imported cars ”.

There are still mixed opinions

Mr. Duc Trung, sales representative of Honda auto dealership in Ho Chi Minh City, supported the loosening of Decree 116 on car import. For example, it is only necessary to test the emissions and safety for the first batch and accept the test reports for subsequent batches as previously specified without the need for re-testing as specified in Decree 116.

The Ministry of Transport proposes to amend Circular 03/2018.

“Because it is very unreasonable to re-test the emissions and safety of each batch of imported vehicles even if they are the same model and even at the same production time with the same indicators. unnecessary less “, Mr. Trung shared.

However, some domestically manufactured and assembled automobile companies have suggested that Decree 116/2017 should be continued. Representative of Truong Hai Automobile Joint Stock Company (THACO) evaluated that Decree 116 was born to protect the environment, ensure safety and interests of consumers; create fair competition between import and domestic production and assembly.

“Decree 116 does not provide any incentives for domestic companies, nor do we apply for incentives. In addition, the domestic automobile manufacturers and assemblers themselves have to check each vehicle, they have to go to Japan to check the vehicle quality ”- THACO representative stated his opinion.

Similarly, a representative of another domestic auto company also commented that the type quality certificate is very necessary to protect the environment and ensure safety for users. Therefore, this rule should not be removed.

There are many ways to protect domestic vehicles

Auto expert Nguyen Minh Dong admits that using administrative procedures with regulations on tightening imported cars to protect the domestic automobile industry is not a fundamental and sustainable solution. The evidence is that ASEAN countries, particularly Thailand, have been very flexible in issuing certificates of quality for exported vehicles to car manufacturers, eliminating difficulties in procedures for importing vehicles into Vietnam.

In some ASEAN countries, importing vehicles is very convenient. But to protect domestic vehicles, they apply a higher excise tax or value-added tax on imported cars than for domestically manufactured and assembled vehicles.

“From there, it shows that Vietnam can still reduce import tax according to the roadmap of integration commitments of free trade agreements. But use the policy of taxes, fees … to apply to imported cars “, Mr. Dong proposed.

Quang Huy
* Source: Law

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