Indonesia reaching out for automotive trade to Vietnam
- Vietnam consumes nearly 273,000 automobile units in 2017
- Work starts on first Vietnamese automobile manufacturing complex
- Decree on automobile trading conditions to be issued
Earlier on 17 October 2017, the Government of Viet Nam has issued the Prime Minister's Decree No.116/2017/ND-CP (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 (Decree No.116/2017/ND-CP).
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| On 27 - 28 February 2018, Indonesia has conducted a series of technical consultations related to the issue of automotive exports to Viet Nam. |
The said Decree is a protective effort of the Viet Nam towards the development of domestic automotive business and also for consumer protection. The Prime Minister's Decree received great attention from several partner countries.
Indonesia's consultation on this occasion is to exchange views and to seek clarification of the Indonesian Vehicle Type Approval (VTA) document. Substantially, Indonesian VTA equipped with Euro 4 standard received a positive response and needed some improvements to the format in accordance with additional information submitted by the Vietnamese side.
As an effort to achieve the bilateral trade goals of Indonesia and Viet Nam worth USD10 billion by 2020, it was noted in 2017 that Indonesia was the third largest exporter of Complete Built-Up (CBU) to Viet Nam with total sales of 16,829 cars valued at USD293.376.185, after Thailand ($ 38,944 worth USD702,870,827), China (11,966 cars worth USD447,530,292).
In the previous year, Indonesia's CBU exports to Viet Nam reached 3,884 units worth USD44,880,870 and increased rapidly by 553.67% (in 2017), but Indonesian exports have been halted since 1 January 2018.
During the visit, the Indonesian delegation met with the relevant parties in the implementation of Vietnam's regulations, including the Ministry of Industry and Trade of Vietnam, the Office of the Prime Minister of Vietnam, the Vietnam Automobile Manufacturers Association (VAMA) and the Ministry of T ransport of Vietnam.
The Indonesian delegation was led by the Ministry of Trade, accompanied by the Ambassador of Vietnam and followed by the Ministry of Transportation, the Ministry of Industry, and the automotive industry.
