8 businesses got car import licenses, more cars arriving

At least eight businesses have got the car import licenses. A lot of businesses are nearly completing necessary procedures, ready to carry cars to Vietnam. The car market is expected to heat up again after two years of quietness.

The Hai Phong Customs Agency has sent to the General Department of Customs and the Ministry of Industry and Trade (MOIT) the list of eight enterprises which can meet the requirements set up by MOIT in the Circular 20.

Prior to that, the legal document was thought to kill a lot of car dealers, because the circular requires importers to show the documents which they would never be able to obtain, especially the manufacturers’ import procuration.

The 8 enterprises include five importers that import products from production bases of the same groups, and three trade companies.

Toyota Motor Vietnam has been authorized by Toyota Motor Corporation to distribute Toyota Landcruiser Prado and Landcruiser models until March 30, 2014. Meanwhile, Toyota Vietnam has completed the procedures for importing 71 cars so far.

Hyundai Thanh Cong Vietnam has been authorized by Hyundai Motor Company to distribute Hyundai i10 and Hyundai i20 without any limitation on the authorization time. The enterprise is following necessary steps to import 794 cars through the Hai Phong port.

Truong Hai-Kia has got the authorization for distributing all the models bearing KIA brand on the Vietnamese market, including Kia Cerato, Kia Sportage, Kia Sorento, Kia Rio, Kia Optima until the end of May 2013. Truong Hai has completed the procedures to import the first consignment of 156 cars.

Vina-Mazda has been recognized as the authorized distributor of Mazda brand products until November 3, 2015. The distributor has fulfilled the procedures to import 12 cars through the Hai Phong port.

The three private trade companies which have got licenses include Chau Tam Phat Trade and Transport Company which has got the procuration for distributing Luxgen brand products until the end of December 2011. Right after getting the procuration, it has been following necessary steps to import 22 Luxgen M7s and Luxgen U7s.

Kylin, a trade company, has been recognized as the authorized distributor of Haima brand products of the Chinese Fawhaima Automobile until July 2012.

Meanwhile, Tan Thanh Do Corporation’s procuration will become expired by December 31, 2011. Prior to that, the corporation imported 8 Land Rovers and distributed on the domestic market.

As such, after just two months since the day MOIT issued the Circular 20 stipulating strict requirements which were thought to put difficulties for car dealers, at least 1150 cars were carried to Vietnam through the Hai Phong port. Meanwhile, the number of imported cars would be higher if counting on the imports that went through three other ports, namely Da Nang, HCM City and Quang Ninh.

The MOIT’s circular once faced a strong opposition from Vietnamese car dealers, who said that the legal document would create unleveled playing fields for importers. The circular was believed to restrict the number of imports by private trading companies, while paving the way for domestic automobile joint ventures to carry cars to Vietnam.

However, a car dealer said that this does not mean the doors all have been closed to private car importers. “There always exists a way out, and if enterprises have enough patience, they still can go through,” he said.

“We are surveying the demand in the domestic market and getting ready to carry more cars to Vietnam,” he revealed.

In related news, the Vietnam Automobile Manufacturers’ Association VAMA has released a report, showing that in September 2011, its member companies sold 10,031 cars, an increase of 10 percent in comparison with September 2010. Analysts have commented that this is a satisfactory figure which promises the warming up year-end sale season after a long period of hibernation.