Vietnam reopens market for Indonesian exports of automotive products

Indonesia has also sent sample of VTA to the Vietnamese authorities ..."

Jakarta (ANTARA News) - Vietnam has agreed to reopen its market for Indonesian exports of automotive products after the Indonesia government agrees to comply with the Vietnamese import regulation on certificate of Vehicle Type Approval (VTA) for completely built-up (CBU) vehicles.

Indonesia could not continue exports of automotive products in CBU form to Vietnam following change in the Vietnamese policy with two new regulations on imports of motor vehicles.

"The Indonesian government will submit document on change in UTA certificate to the government of Vietnam hoping to have response in the first opportunity. We hope we would be able to soon resume exports of automotive products to Vietnam," Director General of Foreign Trade Oke Nurwan, said in a written statement received here on Friday.

The two regulations are Prime Minister Decree No. 116/2017 (Decree on Requirements for Manufacturing, Assembly and Import of Motor Vehicle and Trade in Motor Vehicle Warranty and Maintenance Services) and Circular No. 03/2018 (regulation on the checking on imported automobiles for technical safety and environmental protection in line with the Decree No. 116/2017/ND-CP).

The government has sent a delegation to Vietnam for technical consultation with the Vietnamese authorities and Vietnamese association of motor vehicles. The delegation is made up up of officials of the trade ministry, transport ministry, industry ministry and the Association of Motor Vehicle Industry (GAIKINDO).

The delegation has held separate meetings with Deputy Minister of Industry and Trade Tran Quoc Kanh, Vice Chairman of The Government/Prime Minister Office Nguyen Cao Luc, Deputy Minister of Transport Le Dinh Tho, and Chairman of Vietnam Automobile Manufacturers` Association (VAMA) Toru Konishita.

"Indonesia has also sent sample of VTA to the Vietnamese authorities for confirmation of the acceptance of the UTA in line with Prime Minister`s decree 116 and Circular 03," Oke said.

Deputy Minister Le Dinh Tho said that in principle the VTA of Indonesia has been positively accepted by Vietnam, but additional informaiton is needed related to the data element in line with the Vietnamese government regulation.

Meanwhile, Chairman of VAMA Toru Konishita said that the Indonesian VTA already complied well with the regulation of the Vietnamese government. VAMA said it hopes exports of motor vehicle could run normally again.

Vietnam Register, the Vietnamese government agency in charge of safety aspect of transport equipment said that inspection of sample of motor vehicles imported into that country is made at random.

Tests on emission and safety are in line with the government regulation, but the government will continue to make observation of the implementation of the regulation.

The Indonesian government has said it is ready for consultation again of the Vietnamese policy inspecting every shipment of automotive products if the system is considered to cause hurdle in the process of exports.

"The Trade Ministry is committed to helping facilitat exports of automotive products to that country to ensure that the trade target of US$10 billion in 2020 with Vietnam could come to a reality," Oke said.

Meanwhile, Director for Trade Security Pradnyawati said progress has been made in in the technical consultation with the Vietnamese Transport Ministry.

"The progress would be followed up by the Indonesian Transport Ministry in the second week of March. Exports of automotive products are expected to be allowed again to Vietnam," Pradnyawati said.

According to Vietnamese statistic data , that country imported 38,832 units of passenger cars in CBU form worth US$718 million from Indonesia in 2017.

Imports by Vietnam from Indonesia in 2017 peaked in January when imports totaled 6,345 units valued at US$123.4 million.

Imports of passenger cars in CBU form from Indonesia dropped sharply after the issuance of the Decree 116/2017. Imports by Vietnam of passenger cars in CBU form from Indonesia hit the rock bottom of 592 units valued at US$10.9 million in November 2017.
(Uu.H-ASG/H-YH)