Foreign car makers try to navigate new law in Vietnam after two-month hiatus

Foreign car makers are looking at ways to obtain the documetation required by a new law in Vietnam to reopen automotive exports to the country.

Two months after Vietnam put in place a rule requiring stringent inspections of imported vehicles, around 2,000 Honda Motor passenger cars are slated to arrive in Vietnam from Thailand early this week, likely the first batch of foreign-made autos to undergo the new checks, according to Nikkei Asian Review.

Honda has obtained quality certification from Thai authorities, and the Vietnamese government has apparently accepted the documents.

The Indonesian government is also planning to change the vehicle type approval (VTA) certificates it issues in an effort to reopen automotive exports to Vietnam.

"With the VTA adjustment, Indonesian automotive exports are expected to return to the country," the Jakarta Post quoted Indonesian Trade Ministry international trade director general, Oke Nuwan, as saying.

“The government will convey the change in the VTA certificate to the Vietnamese government to get an immediate response. Hopefully, there will soon be automotive exports to Vietnam,” said Oke.

A new decree issued by Vietnam designed to protect its own developing automotive industry forced Indonesia to stop exports of completely built-up (CBU) vehicles to the country this month, according to the Jakarta Post.

The decree stipulates that traders are only permitted to import automobiles if they can provide valid vehicle registration certificates issued by authorities from the countries of origin.

Original quality control certificates for each vehicle and letters of authorization regarding recalls of defective vehicles from the manufacturers are also required, along with copies of quality assurance certificates provided by the countries of origin.

Toru Kinoshita, chairman of the Vietnam Automobile Manufacturers Association (VAMA) and CEO of Toyota Vietnam, said the decree does not comply with international rules, putting the brakes on car imports in Vietnam.

The Ministry of Industry and Trade claims the regulation will protect consumers and create fair competition between local auto assemblers and CBU importers.

Vietnam imported just 30 cars with less than 9 seats in the first two months of 2018, falling from 5,430 units during the same period last year.

In total, the country imported 536 completely built units (CBUs) between January and February, according to the General Department of Vietnam Customs.