Cars 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 theMinistry of Industry and Trade to implement current policies and assist theremoval of obstacles for auto businesses.
His request is aimed at enabling auto businesses to develop their operations inVietnam.
This is part of the Government Office’s concluding report that Dung released atlast week’s meeting on reviewing the implementation of Government’s Decree116/2017/ND-CP. The decree stipulates the conditions for production, assembly,import and business of automobile warranty and maintenance services, issued onOctober 17 last year.
After a period of validity, Dung said many policies and regulations had met therequirements of automobile development in Vietnam, especially Decree 116 andthe transport ministry’s Circular 03, which aims to clarify the regulations ofDecree 116, helping automobile importers implement procedures when they importautos to the Vietnamese market, said the report.
The Deputy PM said relevant organisations and individuals needed to gatherideas to further study Decree 116 and Circular 03, meeting the requirements onfairness, transparency and competition in accordance with internationalcommitments and practices, ensuring the development of the national automobileindustry strategy.
He asked the ministries to organise field trips to businesses for inspectionand find solutions to handle difficulties, if any.
Dung also assigned the Ministry of Finance to send a report to the Governmentsoon on tax policies for the development of the automobile industry. The reportwill then be submitted to the National Assembly for approval this year.
He asked the ministries of Transport and Industry and Trade and relevantsectors to control the import of cars within ASEAN in accordance with the ASEANTrade in Goods Agreement (ATIGA), ensuring strict fulfillment of the conditionsfor enjoying a tax rate of zero percent.
According to ATIGA, to enjoy zero import tax, vehicles must reach alocal 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 andimprove policies and regulations related to the automobile industry’sdevelopment as well as strengthen automotive quality control in Vietnam.
The report pointed out that the Vietnamese automobile market was experiencingstrong growth and was expected to continue developing in the coming years,thanks to the country’s economic growth rate, which was quite high compared toother countries in the region.
Meanwhile, the income of people has also improved, and the transportinfrastructure is more systematic, resulting in increasing demand for cars.
The Government has asked the ministries to gradually meet the demand of 𒅌theautomobile market while protecting the rights and interests of consumers andthe environment, effectively implement the deve🔥lopment strategy for thedomestic automobile industry, especially increasing the local content(local parts supply) and develop the supporting industry to concentrate oncreating Vietnam’s automobile brands.-VNA
