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Jakarta Post

New Vietnamese decree may halt RI auto exports

  • News Desk

    The Jakarta Post

Jakarta   /   Mon, February 19, 2018   /   02:37 pm
New Vietnamese decree may halt RI auto exports International trade director general Oke Nurwan of the Trade Ministry (Courtesy of/kemendag.go.id)

The Trade Ministry's director general for international trade has said that a new Vietnamese regulation on automotive imports could significantly affect Indonesia’s exports of fully assembled vehicles to the country.

Oke Nurwan said in Jakarta over the weekend that the government would send a team to the country to discuss the issue, kompas.com reported on Monday.

“We will take a persuasive approach with the Vietnamese authorities. We have set up a team led by the Trade Ministry's international trade directorate general to negotiate with Vietnam,” Oke said in a press statement issued last week. 

The team consists of representatives of the Transportation Ministry, the Industry Ministry and the Indonesian Automotive Association (Gaikindo). They will depart to Vietnam on Feb. 26.    

Vietnam issued Decree No. 116/2017/ND-CP on requirements for the manufacturing, assembly and import of motorized vehicles and trade in motorized vehicle warranty and maintenance services, which stipulates a variety of requirements, including ratings on emissions and safety of imported vehicles.

The regulation has been in effect since Jan. 1. “The requirement imposed by the authorities in Vietnam may put an end to Indonesian automotive exports to Vietnam,” Oke said, adding that Indonesia stood to lose up to US$85 million in vehicle exports to Vietnam under the decree.

According to Oke, the Indonesian National Standards (SNI) would be unable to fulfill the criteria imposed by the new decree. (bbn)