Car importers look to beat road block

Most recently, Kars Haiphong International Company Limited, a wholly foreign owned subsidiary of Kars Motor Group in Vietnam, sent to Ministry of Industry and Trade (MoIT) a record relevant to import of less-than-nine seat Nissan automobiles made in Taiwan into Vietnam.

The record carries a proxy given by Yushin Motor Company Limited, a unit having the right to distribute Nissan brand automobiles in Vietnam which is also a subsidiary of Yulon Nissan Motor Group, a legitimate manufacturer and owner of Nissan brand vehicles in Taiwan.

It also contains a certification proving Kars Haiphong is a licenced automobile maintenance unit by the Vietnam Register.

The company is now awaiting an official response from the MoIT about whether it could import and distribute Nissan automobiles made in Taiwan into Vietnam.

Earlier in January 20, 2012 the MoIT responded to a Nghe An Trading Joint Stock Company proposal of acting as a Nissan brand automobile distributor in Vietnam. The MoIT said the proxy Dongfeng Nissan Passenger Vehicle Company, Dongfeng Motor Company Limited giving to Quangzhou DFS Enterprise Company Limited the company included in its application record was not a legal basis proving Dongfeng Nissan Passenger Vehicle Company, Dongfeng Motor Company Limited was a legitimate manufacturer and owner of Nissan brand vehicles.

Therefore, Nghe An Trading Company Limited needs to source other valid papers proving that Dongfeng Nissan Passenger Vehicle Company, Dongfeng Motor Company Limited was a legitimate manufacturer and owner of Nissan brand vehicles.

In fact, the right to import and distribute Nissan automobiles in Vietnam was exclusively conferred on Nissan Vietnam Company Limited (NVL).

The company’s general director Choo Hong Chow said NVL, a joint venture between Nissan Motor Japan and Malaysia-based Tan Chong Holding Berhad, was appointed by Nissan Motor Japan to act as an exclusive distributor of Nissan brand vehicles in the Vietnamese market from September 1, 2011.

“I will not comment on proposals by some local firms relevant to import of Nissan automobiles into Vietnam as it depends on decisions by relevant Vietnamese agencies,” said the executive.

In fact after Circular 20 took effect, specialised auto trader H.L Company Limited imported over 40 Lexus cars into Vietnamese market. The firm could only present a proxy of a Lexus dealer in US market, but not a proxy directly from Toyota Motor Japan, the singe legitimate owner of Lexus and Toyota brand cars. The fate of the Lexus cars is now up in the air.

On May 12, 2011 the MoIT presented Circular 20/2011/TT-BCT presenting additional procedures for import of less than nine seat passenger automobiles. Accordingly, when conducting importing procedures for cars from nine seats or less, apart from implementation of current regulations, traders must provide following additional documents to the competent state agency:

1. Appointment paper or power of attorney as an importer, distributor of the such car maker, trader who trades such type of car or agent contract of the such car maker, trader who trades such type of car which were consular legalised by the overseas-based Vietnam diplomatic representative agency as prescribed by law: 01 (a) copy certified and sealed true copy of traders.

2. Certificate of car warranty, maintenance establishment with sufficient conditions issued by the Ministry of Transport: 01 (a) copy certified and sealed true copy of traders.
The circular took effect on June 26, 2011.