At least 50 car
importers have signed a complaint to be lodged to the Prime Minister and
relevant ministries, expressing their protest against the Circular 20, stipulating car import
regulations. They said that the legal document will terminate all their
business opportunities.

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On the morning of May 24, car importers in Hanoi came to an extraordinary meeting, where they discussed the measures to deal with the newly issued Circular 20.

On the
morning of May 24, car importers in Hanoi
came to an extraordinary meeting, where they discussed the measures
to deal with the newly issued Circular 20. The participants brought with them, the stamps of their
companies, so that they could sign into a complaint which will be lodged to the
Prime Minister, Minister of Industry and Trade Vu Huy Hoang and Minister of
Justice Ho Hung Cuong.

An
importer said that if government agencies do not amend the circular 20, a lot
of car importers will have to shut down their business after June 26.

Under
the newly issued circular 20, the importers of cars under the mode of complete
built units (CBU) have to show a lot of documents, which, according to car
importers, unattainable. In case they can contact necessary agencies to get the
necessary documents, it will take them a lot of time because they will have to
follow very complicated procedures.

In
the document to be sent to the relevant ministries, car importers raised three
big questions: First, who will benefit from the
circular 20? Second, will the circular help curb
the inflation and stabilize the macro economy? Lastly, will the legal document ensure the
benefits of consumers and help settle the traffic problems?

There
are three types of distributions now existing in the market, including the official
import (authorized by manufacturers), the import by domestic automobile joint
ventures (mostly the members of the Vietnam Automobile Manufacturers’
Association VAMA) and about 2000 enterprises which import cars under commercial
contracts.

The
2000 enterprises now hold about 50 percent of the car market and they have been
increasing their presence in the domestic market, thanks to the flexible pricing
mechanisms. They are the most redoubtable rivals of VAMA’s members.

Car
importers wrote in the complaint that the circular 20 could be seen as a way
to protect VAMA’s members, while it will “declare death” to commercial
importers. This means that the 2000 enterprises will face the risk of having to
shut down their business.

Once
the circular 20 takes effect, the domestic car prices will be pushed up,
because the number of importers will decrease, thus narrowing the competition
among importers.

Director
of Thien An Phuc Auto Company, Nguyen Tuan said that car importers support the
government’s policies on controlling trade deficit. However, he said the newly
issued document has many problems that need to be reconsidered. Tuan stressed
that the new decision means the prohibition on brand new car imports.

Businessmen,
in order to dodge the laws, will import used cars, Tuan has warned. If so, the
domestic market will be flooded with used cars, which will make the efforts to
restrict used cars in Vietnam become in vain.

Tuan
said that obtaining different kinds of documents for every import deal is an
“impossible mission” like “picking up stars on the sky”.

Tuan
was one of the first businessmen who signed the complaint yesterday. “We have
no other choice. If we do not make complaints, we will have to shut down our
business,” he said.

Director
of Dong Hai Auto Company, Bui Thanh Hai also agreed that the circular 20 is a kind of
prohibiting car importers. “The import car market will fall into the hands of
foreigners after a short time,” he has warned.

Source: VnExpress