Draft amendments and supplements to Decree 116 related to automobile manufacturing

Pursuant to the provisions of the Law on Promulgation of Legal Documents, the Ministry of Industry and Trade has submitted to the Government a draft Decree amending and supplementing a number of articles of Decree No. 116/2017/ND-CP dated October 17, 2017 stipulating the conditions for production, assembly, import and business of automobile warranty and maintenance services.

The issuance of the Decree aims to implement the Party and Government's policy on cutting and simplifying administrative procedures and business investment conditions, creating a favorable, healthy and fair business environment; promoting innovation and creativity; modernizing national governance, improving competitiveness, contributing to ensuring growth targets and improving the effectiveness and efficiency of state management.

*The Ministry of Industry and Trade submitted to the Government a draft Decree amending and supplementing Decree No. 116/2017/ND-CP related to automobile manufacturing. Illustration photo: Can Dung.*

Regarding the viewpoint on drafting the decree, the Ministry of Industry and Trade stated that it will ensure constitutionality, legality, and compliance with international treaties to which Vietnam is a member and current legal documents.

The amendment and supplementation of regulations do not create additional administrative procedures and costs during the implementation process. The Decree is built on the viewpoint of taking enterprises and people as the center and driving force of the country's socio-economic development; promoting and creating all favorable conditions for enterprises, reducing administrative procedures, time and costs for enterprises and people in complying with regulations related to business activities.

According to the summary report on the implementation of Decree No. 116/2017/ND-CP, after 8 years of implementation, the decree has achieved many positive results, contributing to improving standards and norms for the Vietnamese automobile market, ensuring technical safety and consumer rights.

Currently, the Ministry of Industry and Trade is granting a total of 40 Certificates of eligibility for automobile production and assembly to 37 enterprises. The implementation in localities has basically been in order; no serious violations have been recorded in the period 2017 - 2025. Enterprises strictly implement the periodic reporting regime on the situation of automobile production, assembly, import, warranty and maintenance according to the provisions of Decree 116.

Many localities have recorded positive developments in the automobile industry, attracting more investment projects to build assembly plants and expand the system of standard service workshops. This shows that the implementation of Decree 116 at the grassroots level has been effective, contributing to promoting the development of the domestic automobile industry.

The tightening of automobile imports in the early stages has created conditions for domestic manufacturing and assembly enterprises to increase production and expand market share. Some domestically assembled car lines (such as Toyota, Mazda, Hyundai, etc.) achieved high sales growth during the period when the supply of imported cars was limited.

During the effective period of the decree, the Government promptly issued preferential tax policies for components that cannot be produced domestically (period 2019 - 2023), thereby encouraging an increase in the localization rate and improving the competitiveness of enterprises.

Source: https://congthuong.vn/trinh-du-thao-sua-doi-bo-sung-nghi-dinh-116-lien-quan-san-xuat-o-to-431845.html