Foreign traders not present in Vietnam will have the right to export or import under Vietnamese law and international treaties that the country has signed. (Photo cafef.vn) Hanoi (VNA) - Foreign traders not present in Vietnam will have theright to export or import under Vietnamese law and international treaties thatthe country has signed.
This is one of several positive changes expected in the business environment asa set of new policies take effect early this year.
The changes will directly impact import and export, production and businessactivities, officials have said.
As the country integrates deeper into the global economy, importers andexporters have paid great attention to the Law on Foreign Trade Management,which is expected to improve the management of foreign trade activities inVietnam.
It is the first time that several provisions on anti-dumping, anti-subsidiesand other safeguards are being written into law, and these are expected to makeit easier to resolve trade disputes, thereby facilitating foreign trade.
They stipulate that foreign traders not present in Vietnam can engage in exportor import in compliance with provisions of Vietnamese law and internationaltreaties that Vietnam is a party to.
The law specifies administrative measures like prohibiting, restricting orstopping the import and export of particular goods or services as warranted bycircumstances.
It also deals with the application of technical measures, especially thoserelating to hygiene and sanitation.
Under the ASEAN Free Trade Agreement (AFT) commitments, a zero percent tax willapply on cars imported from the bloc with a localisation rate of 40 percent ormore in the country or origin.
The models most imported from the ASEAN market, especially Thailand, Indonesiaand Malaysia, include pickup trucks, Toyota Fortuner, Honda CR-V, Ford Everestand Toyota Yaris.
In an effort to boost the national automobile industry in the context of thezero import tax, the Vietnamese Government has issued Decree No. 125/2017/ND-CPapproving the application of zero tax on auto parts imported from ASEAN nationsso that locally assembled cars can be cheaper.
Enterprises eligible for this tax incentive will have to meet conditionsrelating to manufacture, assembly, import, warranty services and automaintenance set in Decree 116/2017/ND-CP.
Under Decree 116, importers have to get an automobile importing businesslicence from the Ministry of Industry and Trade. To qualify for this, importersmust have appropriate warranty and maintenance facilities and be authorised bythe manufacturers in exporting countries to conduct recalls in Viet Nam ifneeded.
Decree 125 also changes regulations on used cars in an effort to minimise theirimports. Specifically, cars with nine seats or less (including drivers) andengine displacement under 1,000cc will attract a flat tax of 10,000 USD each,double the current rate.
Used cars with engines of 1,000cc displacement or more and passenger cars of10-15 seats are subject to varied tax rates.
Accordingly, for vehicles with engine displacements of between 1,500cc andbelow 2,500cc, the tax will be calculated thus: a tax rate of between 150 and200 percent on the taxable price, plus 10,000 USD. For used vehicles of 2,500ccor more, 15,000 USD will be added to the tax rate of between 150 and 200 percenton the taxable price.
The businesses must also commit to producing and assembling vehicles that meetEuro 4 emissions standards (from 2018 to 2021) and Euro 5 (from 2022 onwards).
According to the revised Special Consumption Tax Law, effective January 1,2018, passenger cars with nine seats and less and engine displacement of2,000cc and less will enjoy a five percent reduction in special consumptiontax, which means the rate goes down from 45 percent to 40 percent.
The New Year has also witnessed new actions from the Vietnam Register onemission standards for cars and motorbikes.
Since January 1, the agency has stopped registering or granting technicalsafety certificates for newly-manufactured, assembled or imported autos thatuse diesel engines with emission levels below Euro 4 standards. Euro standardsare a series of emission control standards compiled by the European Union forall new land vehicles. Euro 6, currently the highest standard, is widely usedacross European countries.
Experts have said the leading cause of air pollution in Vietnam is from variousmeans of transport, particularly engine-run vehicles, necessitating strictlimits on their emissions.-VNA
VNA
