15:29 | 27/12/2017 Society
Toyota Vietnam is one of the first firms to ask the Ministry of Industry and Trade to issue business certificates in accordance with new government Decree No 116/2017/ND-CP.
|Toyota Motor Vietnam has asked for a licence to import Lexus cars, people carriers and trucks - Source: xevathethao.vn|
Specifically, the company has requested a new licence to import cars, including Lexus models, people carriers and trucks.
The company said it has completed all documents to comply with the provisions of the new decree, including a certified copy of the business registration certificate of Toyota Motor Vietnam, a certified copy of the certificate of automobile warranty and maintenance by dealers of Toyota Motor Vietnam and a certified copy of Toyota Motor Corporation’s rights to recall automobiles.
On October 17, the Government issued Decree No 116/2017/ND-CP on requirements for manufacturing, assembly and importation of automobiles and automobile warranty and maintenance services.
This new decree follows the Circular No 20/2011/TT-BCT which expired in July 2016. It aims at tightening conditions for the import of cars into Vietnam, making it especially difficult for private car importers.
According to the new decree, a private car import business must satisfy a long list of conditions, including having documents certifying or proving that it is entrusted by a foreign automobile manufacturer to recall imported cars in Vietnam. Once licensed to import cars, a business must maintain business conditions and ensure the performance of their warranty, maintenance and recall responsibilities.
The decree requires car importers to provide quality certificates for cars imported into Vietnam. Another requirement is every single batch of imported cars must be inspected.
Concerning the import of used cars into Vietnam, the decree stipulates that small cars must have a remaining warranty duration of at least two years or have 50,000km left before warranty deadline, while other types of cars must have a remaining warranty period of one year or 20,000km.
Although this new regulation will likely lead to a decrease in the number of companies eligible for entry into the automobile importation market, such a reduction could benefit consumers in the sense that companies with weak capacity and lack of experience will be excluded from the market. Also, even strong, experienced importers will have to seek partnerships with famous and well-established foreign automobile manufacturers instead of less reputable and trustworthy partners.