Dialogue on Decree 116: Difficult coal automobiles, domestic cars agree

While the new “coal” new regulations do not conform to international practices and make it difficult to import cars, domestic firms argue that this creates a competitive environment.

No one car to enter HCMC in the first month of 2018. (Image: Laitr Keiows / commons.wikimedia.org)

On February 26, the Government Office held a dialogue on difficulties and obstacles in the implementation of Decree 116 stipulating conditions for production, assembly, import and business of warranty service, car maintenance and Circular 03 of the Ministry of Transport.

The dialogue in the context of the “entrance” of foreign cars has been almost closed since the effective date of Decree 116. Data from the General Department of Customs shows that in early 2018, the number of automobiles imported to Vietnam has dropped sharply, the number of cars passing through the port is only counted on the fingers.

At the conference, there were two opinions mixed between the foreign and domestic enterprises. While the new “coal” regulation does not conform to the usual practice and makes it difficult to operate the car imports, domestic enterprises think that this creates a competitive environment

Foreign businesses such as Toyota, Ford, GM … expressed concern that some of the administrative regulations in Decree 116 are not in line with international practices, disrupting and virtually ceasing car import activities. Vietnam.

Specifically, the foreign businesses said that the regulations on “quality certificates of type imported cars granted by foreign competent agencies and organizations” is not in accordance with international practice. Countries only issue certificates with vehicles domestically, not certificates for vehicles exported.

In addition, regulations on batch testing for imported vehicles are also considered to be difficult and costly for enterprises.

They also disagreed with the requirement to have a test track with a minimum length of 800m due to difficulties and costly investment. In addition, car manufacturers have different technologies to ensure quality, not necessarily have a 800m test track …

>> Nikkei: Honda and Toyota announced to stop car exports to Vietnam because of strict regulations

Speaking at the meeting, Ford Vietnam General Director Pham Van Dung said that the company only had a short preparation time before the Decree 116 took effect. Ford did not dare to accept orders because if the car did not meet the requirements, it would have to be re-exported, but re-export is a problem, because the countries have different requirements.

Ensure a fair competitive environment
Meanwhile, representatives of domestic enterprises such as Truong Hai, Thanh Cong Hyundai have opposite opinion.

Tran Ba Duong, Chairman of Truong Hai Group, said that quality certificates of type are essential to protect the environment and ensure the safety of users. In addition, Mr. Yang said that this certificate is not necessarily issued by the State agencies, but may be issued by other competent organizations. For example, German cars can obtain certificates from organizations in other countries.

Sharing the agreement with Truong Hai Automobile, Le Ngoc Duc – General Director of Hyundai Thanh Cong expressed the viewpoint: If domestically produced cars must be tested, imported vehicles must also be tested, Type approval is the first basis for state agencies and consumers to evaluate whether the imported car meets the requirements.

Representatives of domestic enterprises said that Decree 116 creates an environment of equal competition between automobile manufacturers and importers. As a result, they have suggested not delaying the implementation of the Decree.

Sharing with businesses, Deputy Minister of Industry and Trade Do Thang Hai and Deputy Minister of Transport Le Dinh Tho said Decree 116 is based on the requirements of protecting consumer rights, environmental protection, security competitive environment among enterprises. The leaders of the two ministries at the same time said they will accept comments and do not intend to create barriers for businesses.

Moderator of the dialogue, Chairman of the Government Office Mai Tien Dung said will thoroughly review all aspects of the problem raised by businesses at the conference and said the Government will continue efforts to improve business environment, removal of barriers, unreasonable procedures.

Mr. Dung said that next week will meet the ministries, agencies to provide the earliest solution. He also suggested that the Ministry of Industry and Trade, the Ministry of Transport and relevant agencies provide reasonable explanations to the business.

The serious decline in the number of imported cars has led many cars to be inactive and prices are pushed up, while old cars are also gaining momentum, the car price range is increased from 20-30 million while the high-end car also followed the price increase of hundreds of millions VND / unit.

Prior to that, information from the Nikkei Asian Review said the two manufacturers of cars