Ministry tightens procedures for auto imports

The Ministry of Industry and Trade has introduced new regulations for imported cars with under nine seats in a move one official says is to reduce trade deficits.

Under the new regulations, traders must now prove they are authorised sales agents by showing a letter of authority.

These papers must be legally certified by a diplomatic mission of Viet Nam abroad.

In addition, car dealers must show certificates of car maintenance from eligible car repair shops granted by the Ministry of Transport to be allowed to put cars on the market.

The regulation will come into effect on June 26.

Domestic car dealers are worried that the new regulations will have a negative impact on the imported car market.

One custom official said the regulations were being imposed as a technical barrier to unauthorised car trading to curb the nation’s trade deficit without violating WTO commitments.

Nguyen Trong Hung, from Auto-GP car dealership in Ha Noi said the regulation would make it difficult for car traders and many would close down.

Pham Huu Tam, of Tradoco car importers, said many dealers would find it difficult to get the required papers.

Tam said that until now cars had been imported on regular sales contracts without letters of authority, which would cost time and money.

Viet Nam had 11 joint-venture automobile companies, Tam said

Only genuine sales agents among these companies, whose parent companies are also owners of major brands that importers are seeking, would have letters of authority or authorised sales agents certificates. Other car dealers might not have access to the papers as the joint ventures will act to protect their interest.

An owner of a car import company in HCM City said the new regulations would close the door on imported cars.

To minimise the imports of new vehicles, the General Department of Customs has asked importers to show proof of quality control, technical safety and environmental protection issued by Viet Nam Register Administration. — VNS

Tags: Vietnam automotive, Vietnam automotive industry, Vietnam autos market, Vietnam car imports