Vietnam’s policy on tightening car import regulations under Decree 116 may be the main reason behind foreign car makers' decision to expand production in Vietnam. The Toyota automotive plant in Vinh Phuc province. Source: toyotavinhphuc.info Most recently, Toyota Vietnam proposed the Vinh Phuc People’s Committee to rent 9.1ha of land in Phuc Yen city to expand its automobile manufacturing plant, raising its annual capacity from the current 50,000 to 90,000 units by 2023. Accordingly, the total capital for this expansion is about $40 million. Toyota’s move is supposed to be the result of Decree No.116/2017/ND-CP, which introduced many strict conditions and regulations about importing cars, which came into effect early this year. Not only Toyota, but Ford and Hyundai are also planning to expand production scale in Vietnam due to the decree. According to the Vietnamese government, Decree 116 aims to boost the development of the country’s automobile … [Read more...] about Decree 116 moves foreign car makers to expand production in Vietnam?
New foreign cars 2017
Japanese automaker Nissan will axe hundreds of staff at its car plant in northeastern England due to a sharp fall in diesel car sales, a source told AFP on Friday. Nissan to cut hundreds of jobs at UK car plant: source, photo AFP Questioned about media reports of hundreds of job losses at Nissan's factory in the coastal city of Sunderland, a source close to the matter confirmed the news but declined to give a timeframe. The news also comes as Britain's car sector, which is largely foreign-owned, continues to face Brexit uncertainty on the horizon. The Sunderland plant -- which builds the Juke, Leaf and Qashqai car models, many of which are diesel -- employs 7,000 workers who produce some 500,000 vehicles per year. However, Nissan saw British sales slump 35 percent in the first quarter on an annual comparison. That mirrors a broader trend across the British automobile industry, with demand sliding on UK government plans to improve air quality. And diesel car sales are also … [Read more...] about Nissan to cut hundreds of jobs at UK car plant: source
By Ngoc Tuan  April 13, 2018 | 03:50 pm GMT+7 A car being manufactured by workers in a factory. Photo by AFP Foreign firms are trying to get past the red tape laid down by Vietnam's government Vietnam's car imports in the first quarter fell six times compared to the same time last year, according to authorities. Only 4,217 new imported cars entered the country in the first quarter, accounting for 15.9 percent of the 26,366 cars imported in the first three months of 2017, according to the General Department of Vietnam Customs. Car importers said that the slowdown was due to a decree issued by the government at the beginning of the year that requires importers to provide valid vehicle type approval certificates issued by authorities from the countries of origin, along with quality control and assurance certificates. As a result, importers in Vietnam do not have enough cars to meet the demand. Having sold its last 38 Toyota Fortuners at the end … [Read more...] about Car imports crawl into Vietnam in Q1: report
Ho Chi Minh City has announced that it will be raising roadside car parking fees by five times from June, making it more expensive to park by the road than it is to use office lots and shopping malls. The new fees for cars will range from between VND25,000-40,000 ($1-1.75) for the first hour, and more thereafter, officials said at a meeting on Friday. HCMC currently allows cars to park on 35 roads and charges fees from 6 a.m. to midnight, and the new rates are expected to bring in an extra VND30 billion ($1.3 million) a month, they said. The fees will be 20-25 percent higher than office buildings and shopping malls. Transport officials have expressed hope that the high fees will keep cars away. Vice chairman Tran Vinh Tuyen said the city does not encourage parking by the road and wants to keep the space clear. “But people have a demand,” he said. Parking space in HCMC's downtown now only meets around 7 percent of total demand, according to sources familiar with the matter. … [Read more...] about HCMC expects to pocket $1.3 million per month from hiking roadside car parking fees
A new decree issued by Vietnam designed to protect its own developing automotive industry does not comply with international rules, hindering the import of cars into Vietnam, said Toru Kinoshita, chairman of the Vietnam Automobile Manufacturers Association (VAMA) and CEO of Toyota Vietnam. The decree, which took effect on January 1, 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. The decree also requires importers to have one car from each batch shipped to Vietnam to go through emissions and safety tests. Under the previous regulation, only one certificate was required for each model of car, … [Read more...] about Local, foreign enterprises in fierce debate over Vietnam’s new car import regulations
Ho Chi Minh City’s seaports went through January without receiving a single automobile shipment, an ode to the immediate impact of a government decree that applies stricter regulations on car imports. While Vietnamese consumers often buy cars during this time of year to celebrate the Lunar New Year, or Tet, which falls in the middle of this month, the supply of imported cars is falling short due to Decree 116, which took effect on January 1. The fiat requires all models of imported vehicles to obtain a Vehicle Type Approval certification issued by authorities in the exporting country. The problem is that most countries that sell cars to Vietnam don’t use such a document and it will take time for exporters to enact measures to meet those requirements. The decree has effectively closed the door for car importers to bring new stock into Vietnam until changes are made. Dinh Ngoc Thang, deputy head of the Ho Chi Minh City customs department, confirmed to Tuoi Tre (Youth) … [Read more...] about Ho Chi Minh City car imports drop to zero as new regulations take effect
A manufacturing company in Ho Chi Minh City has announced it will award its best employees nearly VND950 million ($41,800) each as a Lunar New Year bonus, but another company in the city is planning on giving its workers just VND100,000 ($4.40). The Lunar New Year, known as Tet in Vietnam, will be upon us in less than a month, and once again companies’ bonus reports are being received with both cheers and tears. The southern metropolis, the country’s commercial center, stands at the top of this divide, but most cities and provinces across Vietnam have reported a similarly wide spectrum of bonuses. In Hanoi, one company partly-owned by the government is offering the lowest bonus of VND600,000 ($26), while a foreign company has pledged to pay VND325 million ($14,300), over 500 times more, according to a statement from the city’s labor department. Da Nang, usually considered the third most important city in Vietnam, has reported bonuses of between VND100,000 and … [Read more...] about Holiday bonuses show huge disparity as Lunar New Year nears in Vietnam
Updated at Saturday, 13 Jan 2018, 18:02 The Hanoitimes - The Ministry of Industry and Trade will simplify many administrative procedures to offer maximum support for exports and import firms next time. According to a draft decree on guiding the implementation of the Law on Foreign Trade Management, which was approved by the National Assembly last year, the time for checking records for all administrative procedures will reduce from the current five working days to three days. The same cut will be also applied for the license of CFS (certificate of free sale) for export goods. Vietnam targets to be among the top four simplest places for doing business in ASEAN in 2020 Specifically, the draft also removes the current regulation that requires approval from relevant ministries for licensing temporarily imports for re-exports some goods for measuring purposes or displaying at fairs and exhibitions. The ministry last year decided to remove 675 out of 1,216 business … [Read more...] about New regulations drafted to support export, import firms
In late March 2017, Truong Hai Automobile kicked off the $500 million project on manufacturing and assembling Mazda in Chu Lai IZ with the capacity of 100,000 products a year. The first phase of the project, to have the capacity of 50,000 products, is scheduled to be completed by April 2018. This will be a modern automobile factory with automatic production lines, robots and advanced technologies.The Mazda factory is just one of the new investment projects of Truong Hai. In 2017, the corporation invested VND30.47 trillion to build 8 car assembling, 19 car part manufacturing factories and one R&D center. It plans to manufacture sedans, trucks and passenger cars with the localization ratio of 40 percent at minimum for domestic sale and export.Hyundai Thanh Cong in early April 2017 decided to set up a 120,000 product per annum assembling plant in Ninh Binh. From 2018, when the plant becomes operational, 90 percent of Hyundai cars to be sold in Vietnam will come from the … [Read more...] about Will made-in-Vietnam cars roll on SE Asia streets?
Bank stocks turn attractive to foreignersBy Khang Minh In late 2017, share sales by HDBank and VPBank strongly drew attention from international organizations with the bidding volume much higher than that offered. Successful stories According to Fitch Ratings, Vietnamese banks were at the lowest rank in Asia at the end of 2016, suggesting numerous problems such as overall structure, bad debt and especially poor financial capability. Meanwhile, the banking system was going to pilot capital and risk management following Basel II standards. An article posted on Bloomberg in September 2017 echoed the same viewpoint, saying that capital shortage was the biggest challenge of the banking network. As bad debt figures remained vague, the problem was expected to be much more critical than that written in financial reports. However, the challenges gave banks an opportunity to speed up capital mobilization, including those from foreign investors. For long-vision players, Vietnamese banks were … [Read more...] about Bank stocks turn attractive to foreigners