Gov’t to smooth way for auto firms hinh anh 1Cars at the Chu Lai - Truong Hai Auto Manufacture and Assembly Complex in the central province of Quang Nam. (Photo: VNA)

Hanoi (VNA) - Deputy Prime Minister Trinh Dinh Dung has urged the Ministry of Transport and the Ministry of Industry and Trade to implement current policies and assist the removal of obstacles for auto businesses.

His request is aimed at enabling auto businesses to develop their operations in Vietnam.

This is part of the Government Office’s concluding report that Dung released at last week’s meeting on reviewing the implementation of Government’s Decree 116/2017/ND-CP. The decree stipulates the conditions for production, assembly, import and business of automobile warranty and maintenance services, issued on October 17 last year.

After a period of validity, Dung said many policies and regulations had met the requirements of automobile development in Vietnam, especially Decree 116 and the transport ministry’s Circular 03, which aims to clarify the regulations of Decree 116, helping automobile importers implement procedures when they import autos to the Vietnamese market, said the report.

The Deputy PM said relevant organisations and individuals needed to gather ideas to further study Decree 116 and Circular 03, meeting the requirements on fairness, transparency and competition in accordance with international commitments and practices, ensuring the development of the national automobile industry strategy.

He asked the ministries to organise field trips to businesses for inspection and find solutions to handle difficulties, if any.

Dung also assigned the Ministry of Finance to send a report to the Government soon on tax policies for the development of the automobile industry. The report will then be submitted to the National Assembly for approval this year.

He asked the ministries of Transport and Industry and Trade and relevant sectors to control the import of cars within ASEAN in accordance with the ASEAN Trade in Goods Agreement (ATIGA), ensuring strict fulfillment of the conditions for enjoying a tax rate of zero percent.

According to ATIGA, to enjoy zero import tax, vehicles must reach a local content of 40 per cent or more in the country of origin.

In addition to this, the ministries and relevant sectors will have to study and improve policies and regulations related to the automobile industry’s development as well as strengthen automotive quality control in Vietnam.

The report pointed out that the Vietnamese automobile market was experiencing strong growth and was expected to continue developing in the coming years, thanks to the country’s economic growth rate, which was quite high compared to other countries in the region.

Meanwhile, the income of people has also improved, and the transport infrastructure is more systematic, resulting in increasing demand for cars.

The Government has asked the ministries to gradually meet the demand of the automobile market while protecting the rights and interests of consumers and the environment, effectively implement the development strategy for the domestic automobile industry, especially increasing the local content (local parts supply) and develop the supporting industry to concentrate on creating Vietnam’s automobile brands.-VNA