Vietnam Law & Legal Forum Magazine is your gateway to the law of Vietnam

Official Gazette

Tuesday, July 14, 2020

Conditions for automobile manufacturing, assembly, import to be specified

Updated: 17:32’ - 24/05/2017
Automobile importers would no longer be required to have a genuine power of attorney for distributing cars in Vietnam.

Such is a part of the draft decree recently proposed by the Ministry of Industry and Trade (MIT) in the context that automobile manufacturing, assembly and import will become conditional businesses from July 1.

Car assembly at Hyundai Thanh Cong Vietnam Auto Company__Photo: Internet

Accordingly, instead of a genuine power of attorney, an automobile importer would be granted an import code by the MIT if satisfying the business conditions including having an appropriate warranty and maintenance facility and a car storing yard; separate import, sale and warranty sections, and a section responsible for recall of cars with technical problems or involved in violations.

An import code would be valid for three year from the date of grant, the future regulation said.

Notably, the draft decree does not compel an automobile importer to own a warranty and maintenance facility. It may cooperate with others for operating the facility of which its contributed charter capital accounts for at least 30 percent, or hire a warranty and maintenance facility to provide services. 

The draft goes on to prescribe business conditions for automobile manufacturers and assemblers. Specifically, they would have to meet such conditions on physical facilities as appropriate workshops and technological lines for car assembly, wielding, painting and quality inspection; warranty and maintenance facilities; as well as the conditions on occupational safety and health, fire prevention and fighting, environmental protection and product quality.

Such enterprises would also have to build testing roads of at least 500 m long which meet technical requirements for testing their manufactured or assembled cars.

Those who have already implemented projects on car manufacture and assembly would be allowed to continue their operation without complying with this Decree for three years, the draft said.- (VLLF)

Send Us Your Comments:

See also:


Vietnam Law & Legal Forum