VNF - Due to the provisions of Decree 116/2017, many car manufacturers have difficulty in importing cars to Vietnam in the coming time, especially on the occasion of Lunar New Year 2018. In January, no car entered Viet Nam through Ho Chi Minh City port.

No car enters Vietnam through HCMC port in January due to the Decree 116

The car market is witnessing disturbance. While the need to buy car during Lunar New year is rising, import auto manufactures announce out of stock, car dealers raise price. This disappoints many consumers.

Although the General Department of Customs has not released figures for car imports in January, data in the first half of this month shows that 80 cars were imported into Vietnam, of which only 6 vehicles under 9 seats.

Meanwhile, at the port of HCM City, Dinh Ngoc Thang, Deputy Director of HCM City Customs Department, said that in January, no cars were imported into Vietnam through the port. This is contrary to the previous years, when the number of cars imported to Vietnam increased sharply due to the demand for car buyers during Tet.

Representatives of foreign automakers said that Vietnam market is gradually absent from import auto manufactures, especially in the coming time due to the impact of Decree 116.

The Decree requires car importers to provide quality certificates and types of imported cars issued by foreign competent agencies and organizations.

Talking with Tuoi Tre, Honda Vietnam representative said that it is impossible to determine exactly when the company could complete procedures to continue importing cars to Vietnam. Even if these conditions are met, customs clearance and registration procedures may take at least two months before the cars are sold to consumers.

Meanwhile, a leader of the car import company in HCM City said that assuming a type-certificate for imported vehicle, it also takes up to 70 days pending trial before clearance.

The supply not meeting the needs of consumers has pushed prices of previously imported vehicles up. Consumers, instead of benefit from preferential pricing policies thanks to lower tax for imported cars, will have to pay larger amount of money.

While the situation is tough for foreign manufactures, domestic companies such as Thaco Truong Hai, Huyndai Thanh Cong said the Decree 116 is reasonable because car imported to Vietnam must meet technical requirements applied in Vietnam.

Many experts also said that the use of technical barriers is necessary to not let Vietnam become a landfill technology, encouraging domestic enterprises to develop automobile industry for Vietnam./.

VNF