Requirements for manufacturing, assembly and import of automobiles and trade in automobile warranty and maintenance services

On 17 October 2017, the Government issued Decree 116/2017/ND-CP on requirements for manufacturing, assembly, and import of automobiles and trade in automobile warranty and maintenance services (“Decree 116”). Accordingly, the enterprises manufacturing, assembling and importing automobiles and providing in automobile warranty and maintenance services shall meet the conditions and obtain the certificates as set forth in Decree 116.

The enterprises manufacturing, assembly of automobiles must be issued Certificates of eligibility for automobile manufacture and assembly by Ministry of Industry and Trade. To qualify for this license, the enterprise must satisfy with conditions on (i) facilities, including: the enterprises has the legal rights to use the factory, assembly line, welding line, painting line, quality control line and  testing road meeting and  the automobile warranty/maintenance center, (ii) each technician responsible for automobile production line and assembly line has at least a bachelor’s degree in mechanical engineering or automobiles and at least five-year experience of automobile manufacturing or assembly; and (iii) complying with the law on occupational safety, security and environmental safety. After being licensed, The Ministry of Industry and Trade shall take charge of periodic inspections in every 24 months or ad hoc where there is information proving automobile manufacturers/assemblers violate regulations.

The enterprises want to business on importing automobiles that must be issued License of automobile import business by Ministry of Industry and Trade. The conditions for the enterprise business on importing automobiles granted this license that: (i) the automobile warranty/maintenance center owned/leased by the automobile importer or belonging to the dealer network authorized by such importer meets the requirements mentioned herein; and (ii) there is a physical confirmation or document proving that the automobile importer is eligible to represent a foreign automobile manufacturer/assembler to recall defective automobiles imported into Vietnam.

The enterprise business on automobile warranty, maintenance services must have Certificates of eligible automobile warranty, maintenance automobile which issued by The Vietnam Register affiliated to the Ministry of Transport. Accordingly, the Enterprise must comply with condition about: (i) equipment; (ii) factory; (iii) commitments are made to technical support and provision of automotive parts and accessories for automobile warranty, maintenance services of enterprise manufacturing automobile; and (iv) to meet the human resources, occupational safety, fire safety and environmental safety requirements. Moreover, the licensing authority will conduct to charge of periodic inspections in every twenty four (24) months and ad hoc where receiving the complaint relating to the violation.

Decree 116 officially comes into force on 17 October 2017.