While imports are falling, a huge wave of investment goes into domestic car manufacturing The issuance of Decree 116 Three months ago, Decree 116 has tightened controls for imported automobiles in terms of origin, types, technical safety, and environment protection requirements. The government has confirmed that Decree 116 aims to develop the Vietnamese automobile industry. Besides the tightened regulations and high standards, there are many opportunities for firms to develop the automobile industry, raise localisation rate, and create jobs. However, there are still many arguments around Decree 116. The tightened regulations, along with Circular No,03/2018/TT-BGTVT which came into effect on January 1, 2018, have set various challenges for automobile importers. Recently, automobile branches like Toyota and Honda have announced stopping bringing cars to Vietnam because they cannot obtain a Vehicle Type Approval (VTA) certification issued by authorities in the exporting country. … [Read more...] about Decree 116 and a mounting investment in automobile manufacturing
Vietnam automobile manufacturers association
Vietnam Automobile Manufacturers Association Vietnam+ (VietnamPlus)
Vietnam aims to turn automobile manufacturing into key industry
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(VOVworld) – Deputy Prime Minister Trinh Dinh Dung has reiterated Vietnam’s resolve to turn automobile manufacturing into a spearhead industry with the goal of becoming an automobile exporter. Mr. Dung told a meeting on the development of the automobile industry in Hanoi on Thursday that determination, actions, and consensus between the Government and businesses are the keys to achieving that goal. Automobiles sales in Vietnam in the past ten months were 30 percent higher than in the same period last year. The Vietnam Automobile Manufacturers’ Association said sales of passenger cars soared 30 percent, commercial vehicles 29 percent, and special purpose vehicles 40 percent. Industry experts predict total sales for the entire year could reach 300,000 units. … [Read more...] about Vietnam aims to turn automobile manufacturing into key industry
Vietnam rejects automobile manufacturers’ claims for car tax & fee reductions
VietNamNet Bridge - Despite a series of policies laid down recently to help ease difficulties, automobile joint ventures still demanded sharper tax and fee reductions. In reply, the Ministry of Finance said they should not expect to see all the claims to be satisfied. VAMA (the Vietnam Automobile Manufacturers' Association) petitioned to the Prime Minister, Ministry of Finance (MOF), Ministry of Industry and Trade and Ministry of Transport, requesting to apply drastic measures to rescue the automobile industry. This was for the second time since May 2012 the association petitioned directly to the government. Automobile manufacturers asked to apply the same single ownership registration tax rate of 10 percent on the vehicles registered in all provinces and cities. If the different registration tax rates are still applied as currently, customers would make the ownership registrations in other localities in order to avoid tax. VAMA pointed out that it was the vehicle ownership … [Read more...] about Vietnam rejects automobile manufacturers’ claims for car tax & fee reductions
Vietnam automobile industry risks collapse after Toyota announcement about possible production end
The automotive industry in Vietnam is facing a collapse after Toyota has announced that it may stop assembling automobiles in the Southeast Asian country, considering future cuts in taxes on ASEAN vehicles. As announced early this month by Yoshihisa Maruta, president of Toyota Motor Vietnam, the Vietnamese unit of the world’s largest carmaker is mulling over putting an end to production and switching to imports in order to enjoy the preferential tax treatment an ASEAN trade pact will offer in the next three years. ASEAN stands for Association of Southeast Asian Nations, including Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei, Cambodia, Laos, Myanmar, and Vietnam. According to the road map of the ASEAN Free Trade Area (AFTA), automobiles under ten seats imported from ASEAN countries are entitled to a 50 percent rate this year. The rate will be cut to 40 percent next year, 30 percent the following year, and 0 percent in 2018. As a result, after … [Read more...] about Vietnam automobile industry risks collapse after Toyota announcement about possible production end