What are the conditions for importing and producing cars?

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Only enterprises which are established under the provisions of the Law on Enterprises can conduct automobile production and assembly activities. Photo: HP.

At least one warranty facility needed

After more than two months of research, consultation and revision, and based on the objective of "protecting the health, interests and safety of consumers", the Ministry of Industry and Trade has accomplished the second draft of the Decree on conditions of production, assembly, import and maintenance of automobiles.

Because current regulations only provide general principles of obligations, there are no mechanisms and sanctions to ensure the implementation of this right of consumers as well as the responsibility of the production and import enterprises in fulfilling this obligation. This is the reason for the drafting agency to issue the draft Decree.

In this draft, there is a remarkable and controversial content on the import conditions for automobiles. In the past, Circular 20/2011 / TT-BCT required enterprises for genuine authorizations, but the draft does not mention these conditions.

Accordingly, the draft stipulates conditions for the import of automobiles as follows: There is at least one maintenance and repair facility suitable to imported cars; enterprises must have written commitments with the Ministry of Industry and Trade on the implementation of warranty, maintenance, recall and recovery of imported automobiles.

Regarding automobile maintenance and repair conditions, from 1^st July 2020, enterprises importing cars must own at least one warranty facility. Previously, enterprises may own or sign a lease, contract for the provision of warranty and maintenance services for a minimum period of 3 years, or belonging to the distribution system of businesses.

The warranty and maintenance facility must have a signboard clearly stating the name of the import enterprises, address and telephone number.

Individuals in charge of production and assembly must have a university or higher degree

In addition to automobile import conditions, the draft also mentions the conditions for automobile assembly and production. Accordingly, only enterprises which are established under the provisions of the Law on Enterprises can conduct automobile production and assembly activities.

Enterprises must have sections in charge of managing automobile production and assembly and at the same time, individuals in charge of managing automobile production and assembly must have a university or higher degree in mechanical and automotive sectors, and have experience in manufacturing and assembling automobiles for 5 years or more.

In terms of facilities, enterprises must own workshops, assembly lines and quality inspection chains; enterprises may own or lease paint lines.

In the case where the automobile manufacturing and assembling enterprises are organized according to the parent-subsidiary model, the subsidiaries of the parent company may share automobile test process.

Enterprises may own or hire automobile service and maintenance facilities which fully meet the conditions specified in Article 28 of this Decree but after 1^st July 2020, enterprises own at least one automobile maintenance and repair facility which is suitable for the types and categories of automobiles manufactured and assembled and fully satisfy the prescribed conditions.

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According to the drafting agency, regulations on facilities in the draft are aimed at ensuring the output quality of vehicles by forcing the enterprises to meet the criteria of workshops, assembly, paint line, product quality inspection line and automobile test line as stipulated in the decree; ensuring the responsibility for warranty, maintenance and recall of defective technical products and the recovery of waste products of enterprises in order to protect consumers' interests and the environment.