HCMC – There will be regulatory gaps when the automobile localization ratio regulations are abolished on October 1, 2022, the Ministry of Finance (MOF) said, proposing delaying the abolition to have time to adjust.
According to the ministry, Circular 11/2022/TT-BKHCN issued by the Ministry of Science and Technology (MOST) would eliminate the automobile localization ratio content in various legal documents, thereby creating regulatory gaps in processes classifying complete knock-down kits.
The Government has yet to issue a decree replacing or adjusting the contents of these legal documents.
The MOF has sent the MOST official dispatches on regulations on the automobile localization ratio, proposing delaying the enforcement of Circular 11 or extending the validity date of the regulations on the automobile localization ratio until new decrees on tariff concessions on imports and exports come out.
The MOF said abandoning the current regulations could lead to enterprises importing auto parts in clusters but at a low discrete level, thereby discouraging them from investing in production lines and equipment and hindering an increase in local content in autos.
The Vietnam Automobile Manufacturers Association expressed its concern over its business operations being affected if Circular 11 takes effect and has sought solutions, the MOF reported.
The MOF also asked the relevant authorities for feedback on the contents of the draft decree on imposing import and export tariffs.
Circular 11, which would rescind regulations on the automobile localization ratio after having been in force for almost 20 years, was issued on August 12 by the MOST and will take effect on October 1.