However, importers will have to pay all or part of the value of their signed contracts before the promulgation of the circular.

The circular dated last June stipulated that enterprises had to have a letter of attorney from automobile producers before they could be importers or distributors.

According to the Ministry of Industry and Trade’s circular, thousands of auto showrooms found it impossible to import cars due to the preventively stringent requirements, which also called for certificates of maintenance service issued by the Ministry of Transport (MoT).

Automobile importers had been complaining that they could not easily secure the documents stipulated in the circular, especially the letter of attorney issued by manufacturers.

About 100 automobile importers submitted to the Government to postpone the application of the circular.

One automobile importer in Ha Noi said it was impossible to get the documents, especially for small-and medium-sized enterprises. In addition, the time from promulgation to implementation was only 40 days. This did not leave those affected with enough time to prepare themselves for the changes.

He added that there was a paradox here as some were able to import and sign contracts with foreign partners, while others were unable to implement import procedures because of the circular.

He said importing automobiles often required a big quantity and signed contracts before three to six months. Imports from the US, Canada and Europe would take from 30 to 60 days - thus making the shipments arrive in Viet Nam after the circular took effect.

Production up

Statistics from the Ministry of Planning and Investment’s General Statistics Office said consumption index in automobile production industry in the first half of this year increased 70 per cent while inventory rose only 9.4 per cent.

The figures showed that the industry has seen recovery signs after a long time of stagnancy.

Reports from the Viet Nam Association of Automobile Manufacturers (VAMA) said total sales of its members last month slightly increased over the previous months.

VAMA also released a forecast showing that total sales this year would increase from 80,000 to 100,000 after the MoT said they would not collect new fees in the upcoming several years.

The association said one of the most important reasons that the automobile market decreased was because people were worried about the new fees.

In addition, the market is coming in a peak time this year, while automobile producers rush to implement marketing campaigns.