Illustrative image (Source: VNA) Hanoi (VNA) - Automobile imports inVietnam plummeted in the first month of 2018, also the time before Tết (Lunar New Year) holiday.
Only 337 cars of all kinds were shipped to thecountry, according to data of the General Department of Customs.
Of the imports, there were only 17 passengercars with nine seats or less, amounting to 567,000 USD. Notably, no cars wereimported from Indonesia and India.
In 2017, Indonesia was among the top countriesafter Thailand with the highest number of exported cars to Vietnam. India toohad a relatively large number of exported vehicles in 2016. However, in Januarythis year, both the countries did not export any car to Vietnam. Meanwhile,Thailand lost its recognition as the largest import car market in Vietnam, withonly 36 vehicles exported to the country since the beginning of the year.
Among the automobile export markets to Vietnamin January 2018, Russia suddenly rose to the top, with 159 vehicles beingexported, worth 274 billion VND (12.03 million USD), equivalent to 1.7 billionVND each.
Under a deal on autos signed between Minister ofIndustry and Trade Tran Tuan Anh and Russian Ambassador to Vietnam KonstantinV.Vnukov in Hanoi in December last year, Russia’s joint ventures in Vietnamare allowed to import duty-free 2,550 complete built-up units and 13,500 setsof automobile parts from 2018 to 2022 as a way of exploring the capacity andtastes of the market.
China (65 cars) and the United States (42 cars)ranked second and third in exports, respectively.
According to The Jakarta Post, Indonesia’s four-wheel car manufacturers facea bleak future in exports following a new regulation of Vietnam, which is poisedto build its own automotive industry.
The Vietnamese Government in November issued Decree No. 116/2017/ND-CP on carmanufacturing, assembly, importation and warranty offering, a move that cameinto effect from January 1, 2018, and tightened car imports.
According to the Vietnamese Ministry of Industryand Trade (MoIT), Decree 116 is a supportive measure for domestic companies asit sets up a number of technical barriers to limit the import of cars. Thedecree comes at a time when the import tax of automobiles from within the ASEANbloc is zero percent, which also became effective from January 1, 2018.
Under the decree, car importers in Vietnam arerequired to obtain a Vehicle Type Approval (VTA) certification, which detailsthe imported vehicles’ quality, safety and environmental protection. The VTAmust be issued by authorities in exporting countries. In addition to this, onesample will be selected from every batch of imported cars for emission, qualityand technical safety tests. The inspection will be repeated in the nextshipment, even on the same car models.
“The new rule creates additional costs; a complete inspection may take one totwo months, while other cars from the shipment will have to stay at the portand be charged daily for storage,” Kukuh Kumara, Indonesian AutomotiveManufacturers Association (Gaikindo) secretary-general, told The Jakarta Post.
The new rule prompted Gaikindo to send a letter to the MoIT on January 27. Theletter claimed that four automakers - Toyota, Suzuki, Daihatsu and Hino - hadstopped the planned production of 9,337 vehicles bound for Vietnam. The unitswere supposed to be manufactured in the December-March period.
The Jakarta Post quotedKukuh as saying that Indonesia sent some 30,000 cars to Vietnam annually, withthe four automakers being the biggest exporters.
According to data of the Central StatisticsAgency, Indonesian passenger car exports to Vietnam from January to Novemberlast year was valued at 241.2 million USD, up significantly from 17.78 millionUSD in 2016. Indonesia is also ranked among the top three passenger carexporters to Vietnam, along with Thailand and China, with a market share of13.12 percent.
Oke Nurwan, international trade director general at Indonesia’s Trade Ministry,said if manufacturers were reluctant to export their cars to Vietnam, Indonesiacould lose some 85 million USD between December and March.
He said the Indonesian government had decided to take a soft approach on thematter by sending on February 26 a delegation to lobby with its Vietnamesecounterpart.-VNA
Only 337 cars of all kinds were shipped to thecountry, according to data of the General Department of Customs.
Of the imports, there were only 17 passengercars with nine seats or less, amounting to 567,000 USD. Notably, no cars wereimported from Indonesia and India.
In 2017, Indonesia was among the top countriesafter Thailand with the highest number of exported cars to Vietnam. India toohad a relatively large number of exported vehicles in 2016. However, in Januarythis year, both the countries did not export any car to Vietnam. Meanwhile,Thailand lost its recognition as the largest import car market in Vietnam, withonly 36 vehicles exported to the country since the beginning of the year.
Among the automobile export markets to Vietnamin January 2018, Russia suddenly rose to the top, with 159 vehicles beingexported, worth 274 billion VND (12.03 million USD), equivalent to 1.7 billionVND each.
Under a deal on autos signed between Minister ofIndustry and Trade Tran Tuan Anh and Russian Ambassador to Vietnam KonstantinV.Vnukov in Hanoi in December last year, Russia’s joint ventures in Vietnamare allowed to import duty-free 2,550 complete built-up units and 13,500 setsof automobile parts from 2018 to 2022 as a way of exploring the capacity andtastes of the market.
China (65 cars) and the United States (42 cars)ranked second and third in exports, respectively.
According to The Jakarta Post, Indonesia’s four-wheel car manufacturers facea bleak future in exports following a new regulation of Vietnam, which is poisedto build its own automotive industry.
The Vietnamese Government in November issued Decree No. 116/2017/ND-CP on carmanufacturing, assembly, importation and warranty offering, a move that cameinto effect from January 1, 2018, and tightened car imports.
According to the Vietnamese Ministry of Industryand Trade (MoIT), Decree 116 is a supportive measure for domestic companies asit sets up a number of technical barriers to limit the import of cars. Thedecree comes at a time when the import tax of automobiles from within the ASEANbloc is zero percent, which also became effective from January 1, 2018.
Under the decree, car importers in Vietnam arerequired to obtain a Vehicle Type Approval (VTA) certification, which detailsthe imported vehicles’ quality, safety and environmental protection. The VTAmust be issued by authorities in exporting countries. In addition to this, onesample will be selected from every batch of imported cars for emission, qualityand technical safety tests. The inspection will be repeated in the nextshipment, even on the same car models.
“The new rule creates additional costs; a complete inspection may take one totwo months, while other cars from the shipment will have to stay at the portand be charged daily for storage,” Kukuh Kumara, Indonesian AutomotiveManufacturers Association (Gaikindo) secretary-general, told The Jakarta Post.
The new rule prompted Gaikindo to send a letter to the MoIT on January 27. Theletter claimed that four automakers - Toyota, Suzuki, Daihatsu and Hino - hadstopped the planned production of 9,337 vehicles bound for Vietnam. The unitswere supposed to be manufactured in the December-March period.
The Jakarta Post quotedKukuh as saying that Indonesia sent some 30,000 cars to Vietnam annually, withthe four automakers being the biggest exporters.
According to data of the Central StatisticsAgency, Indonesian passenger car exports to Vietnam from January to Novemberlast year was valued at 241.2 million USD, up significantly from 17.78 millionUSD in 2016. Indonesia is also ranked among the top three passenger carexporters to Vietnam, along with Thailand and China, with a market share of13.12 percent.
Oke Nurwan, international trade director general at Indonesia’s Trade Ministry,said if manufacturers were reluctant to export their cars to Vietnam, Indonesiacould lose some 85 million USD between December and March.
He said the Indonesian government had decided to take a soft approach on thematter by sending on February 26 a delegation to lobby with its Vietnamesecounterpart.-VNA
VNA
