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The highlight of the automotive industry in 2016

Let’s AP report reviewed 10 events, most outstanding issues related to the field of automobiles and motorcycles in Vietnam in the past year.

1. “War” Import Car

The reason this issue was revived, became the subject of “hot” in the past year is by Circular 20/2011 / TT-BCT, provides for the import of cars must have a genuine mandate, the end entered into force on 01.07.2016. Each level only car company a power of attorney only genuine importers in each country, so this Circular was born 5 years ago is considered to be an end to the import of automotive freedom.

Human the Circular 20 expires in 2016, the non-genuine importers have “run around” calling The provisions on genuine power of attorney, to untie the import of automobiles, create a fair competition, prevent monopoly in the car distribution activities.

However, nearly half a year has passed and still no introduction text, replace Circular 20; and “the two sides” will continue this war in 2017, with somewhat inclined advantage importers holding genuine power of attorney. The Ministry of Transport (MOT), Industry, Trade and Science and Technology (S & T) is drafting more specific texts on imports, factory regulations, intellectual property (related to machinery, parts software as a service warranty, maintenance) …

In addition, production, assembly, automobile imports was officially included on the list of lines of business investment conditions by the Law Amending and Supplementing Article 6 and Annex 4 of the Law on Investment, with effect from 01.01.2017.

2. Regulation sanctioned new traffic

From day 01/08/2016, Decree 46/2016 / ND-CP has officially replaced Decree 171/2013 and Decree 107/2014, with many new in the prescribed administrative sanctions in the field of transport, such as increased levels of sanctions for such behavior: lights yellow speeding drivers on the road in blood or breath alcohol concentration exceeds the prescribed driving fail to observe traffic signals caused the accident but do not stop …

Except that sanctioned automobile driving behavior yellow lights cause many debate mainly the opposition, because irrational; rest, most of the new provisions in Decree sanctioned 46 people are backing a move towards a safe traffic environment and discipline.

3. Regulation signs, new road markings

Along with the Law on Road Traffic of 2008, Decree 46/2016 provides for sanctioning of administrative violations in the field of transport, the National Technical Regulation on Road Signs (promulgated Circular Circular No. 06/2016 / TT-BGTVT) is the guiding principle for all activities related to road transport in Vietnam at this time.

The regulations have some new points to note, as prescribed signboards turn not worth banned turns, specifies the behavior reached to …

4. Change the special consumption tax

Law amending and supplementing some articles of the SST had begun into force on 01.07.2016; accordingly, only cars with a capacity of 1,500 cc under reduced excise duty rates; The remaining cars were flat or increased tax rates. Specifically as follows:

With such a tax change, the price of small cars fell slightly after 7.1.2017, while many luxury cars, the price increases to hundreds of millions or even several tens of billion , such as Rolls-Royce Phantom samples East A price increase of nearly 30 billion to 83.8 billion.

5. PET material change to the driving license

According to Circular 58 / TT-BGTVT 10/20/2015, driving license and driving license Automobile A4 grade of paperboard must be converted to the new driving license material PET (plastic) prior to 12/31/2016. Driving license indefinitely (grades A1, A2, A3) must be changed prior to 31.12.2020. After 6 months according to the schedule prescribed conversion, whose driving license examination paper must cover the theory to reissue driving license.

not until a year after the introduction of Circular 58 of the Ministry of Transport, the Ministry of Justice the new spoke confirmed the compulsory MOT convert people driving license (not time or longer shelf life use) from the type of paper into the plastic cover is “no legal basis, does not ensure consistency”, “negatively impact the rights and legitimate interests of the people”.

MOT, so gave up provisions to retake the theory; from place mandatory regulations to encourage people to switch to driving license converted into plastic materials to combat counterfeiting.

However, this correction seems MOT was too late, when information from the transport sector, said the end of November, the number of people who have changed to a type of plastic driving license to less than 300 thousand people , while there were nearly 5.3 million people takes time and money to go change under the provisions of the driving license.

6. Regulation extinguishers

Circular 57/2015 / TT-BCA of the police force on 1.6.2016 with the provisions automobiles must be equipped with fire-fighting vehicles, with fines from 300,000 to 500,000 violations copper for conventional cars, and 3-5 million for the vehicles transporting dangerous chemicals or explosive goods.

However, due to the fact that happened not at the explosion extinguishers in vehicles in hot weather conditions, plus the Vietnam no national technical regulations on fire extinguishers, and these products onto the market and no label management agency, so testing and sanctions so far almost only exists in theory. Traffic Police Department (under the Ministry of Public Security) Police also confirmed that the absolute not stop means just to test the fire safety equipment.

7. Persistent current Mazda3 incident check-engine lights

In May 6/2016, Thaco – domestic automobile group officially announced more than 10,000 summons Mazda3 SKYACTIV-use G 1.5L engines in Vietnam due to engine fault indicator, ending the persistent controversy earlier 1 year. The incident began when nearly 100 customers reflects the check-engine light out when the vehicle is less than 10,000 kilometers in March 7/2015.

Then this phenomenon appears more on the corporate form and Mazda led people to recognize the phenomenon and take samples for research. However, until May 3/2016 that Mazda and distributor in Vietnam did not make a final conclusion about the cause of this incident. During that time, Mazda Vietnam still perform interim remedial measures, such as washing the fuel injection system, refill cleaning fluid injectors.

Until the end of the month 4/2016, when Mazda Vietnam did not provide the final solution for the Mazda3 is the check-engine lights, Vietnam Registry Department announced it would not sign a new test for the car if no radical solution to this problem. By this time, the new Mazda Vietnam submitted plans please summoned to repair Mazda3 models in Vietnam, and Registry Department 6/2016 adopted in August.

However, Mazda’s representative distributors in Vietnam said the check-engine fault on the 1.5L SKYACTIV engines are still corporations Mazda research and analysis, and this was not a last resort . And also with this engine category, the 4809 Mazda2 in Vietnam must also summon the same error on May 10/2016.

8. Tax arrears of nearly 1,000 billion auto import business

May 7/2016, General Administration of Customs issued a notice of the phenomenon of difference in value of imported cars in 5 gate are allowed to import cars nationwide. By October 8/2016, Taxation turn receive direction of the National Steering Committee against smuggling, commercial fraud and counterfeiting (389 Steering Committee) investigated for abusing some object policies automobile imports in the form of gifts to fraud, tax evasion and particularly commercial frauds when declaring dutiable value of imported cars is lower than market value.

General Department of Taxation has requested the local tax authorities to control the import business establishments imported cars under the gift area, check the number of vehicles sold to a second party … to revise tax obligations of these companies. May 9/2016, Deputy Prime Minister Vuong Dinh Hue officially direction and asked the Ministry of Finance to examine the phenomenon to clarify the issue of fraud in the import of cars in the form of donations.

And the result of this inspection, the company distributed a series of luxury and super luxury in Vietnam were GDT arrears amounting to thousands of billions of VND; notably including Tan Chengdu – distributors Jaguar and Land Rover brands were 719 billion arrears the company Regal – distributed brand Rolls-Royce has been collected for 49 billion copper and especially cases company Euro Auto – distributed brand BMW, MINI, Motorrad in Vietnam, due to the acts of forging invoices and vouchers as imported vehicles, voluntary consumption goods without customs clearance, with indications of fraud, cheating customers and is now officially being prosecuted in the past day 12.20.2016. Show companies were tax arrears supplements are preparing complaints due process of law.

9. Trends import car instead of assembly

Due to the impact of import tariff reduction schedule of 0% until 2018 for the production of cars in countries in the ASEAN region, a series of previous models were assembled in Vietnam will now be transferred CBU imported into other countries in the region, mainly Thailand. The names of concern in Vietnam automobile market before being assembled in this country will switch to imported CBU Toyota Fortuner include, Ford Everest, Mitsubishi Pajero Sport, Honda Civic …

All this move showed the fact that the major car manufacturers are now present in Vietnam is generally a tendency to choose business methods imported from other countries in the ASEAN region, rather because at Vietnam assembly. This simply stems from the problem of efficiency in the business, as the cost of production and management for the national assembly can not be effective by importing vehicles from the factory with the production scale, professional qualifications and experience in this field for many years.

big reason for this is due to the production capacities of the supplier for the automobile assembly plant in Vietnam is not big enough, not a lot of production experience and especially not to mention production provided no larger (main influence of car consumption market of Vietnam remained low – in 2016 is expected to reach about 300,000 vehicles) leads to the production cost is too large, impact on business performance .

In addition to the above models, the entire current pickups in Vietnam market are imported from Thailand, the other passenger cars with similar backgrounds including the Toyota Yaris, Mitsubishi Attrage / Mirage, Honda Civic / Accord …

With this trend the next big possibility there will be many carmakers, from now to 2018 will only retain a few locally assembled cars have good effect as Toyota Innova, Ford Transit …

10. Ending the Euro 2 emission standards for cars

2016 at the end as well as regulations on Euro 2 standards for cars are imported or assembled in Vietnam. Decision 49 / QD-TTg dated 1/9/2011 of the Prime Minister defined the new emissions standards for all types of cars, motorcycles officially be applied from the date of 01.01.2017. Accordingly the 4 emission standards will be applied to all kinds of cars production, assembly and new importers and the level 3 emission standards will be applied to all kinds of motorized two-wheel manufacturer and assembly and new importers.

Emission Standards at level 3 and 4 will be on the test criteria and limit pollutants in emissions equivalent to the Euro 3 and Euro 4 is specified in the technical regulations on emission motor vehicle of the European economic Commission, the UN, or the directives of the European Union applies to motor vehicle production, assembly and new importers.

There are problems arising on the fuel used for this car when car manufacturers are ensuring that cars are manufactured or imported into Vietnam will be able to ensure this problem, however, the company stressed the importance of providing quality fuel vehicles should also ensure the “substandard”, the application of the regulations on the emission levels for cars, motorcycles can reach brand management is as designed.

Back to the capacity of the unit testing of the emissions of motor vehicles, representing Vietnam Registry Department, said the agency was fully prepared infrastructure and machinery to be able to perform the test means according to the new emission standards.

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The highlight of the automotive industry in 2016
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