The Ministry of Industry and Trade, in the surprising move, has declared a new rule requiring vehicle importers showing proof that they're authorized dealers with the foreign carmakers they purchase in from.
It has been reported, the rule coming into impact on June 26, relates to new cars of minus than nine seats.
Importers have to undergo the authorities’ documents showing that they've been authorized by foreign auto businesses to sell the cars in Vietnam. The documents need to be approved by Vietnamese diplomatic council.
Additionally importers need to get qualified customer support facilities in Vietnam just before becoming allowed to bring foreign vehicles into the nation, as per to the new rule.
A customs officer as proclaimed that the regulation was a trade obstruction that meant to help decrease Vietnam’s trade deficit. “Unauthorized car dealers will find it difficult providing the required documents,” he states.
Director of car trader Tradoco Pham Huu Tam, stated there are 11 auto joint-ventures in Vietnam, and they are the only real ones which have the necessary authorization documents. Smaller importers will need to close their businesses unless they turn into sales agents to the joint-ventures, he was quoted saying.
An unknown auto dealer said the new rule is really a tricky one for importers simply because it means the whole vehicle marketplace is being paid to members in the Vietnam Automobile Manufacturers' Association (VAMA).
Vietnam imported 10,956 cars worth almost US$190 million among January as well as April this year. Of those, cars of much less than nine seats landed 7,000 units.
During the similar time, 37,305 cars collected by VAMA members had been sold nationwide.