Vietnam’s paperwork to persevere
FTI: Vietnam’s paperwork to persevere
Thai car shipments are unlikely to improve
The Federation of Thai Industries (FTI) expects Thai car shipments to Vietnam to continue to affect all automakers, even after the two governments resolve to tackle obstacles posed by non-tariff barriers from Vietnam.
Surapong Paisitpatanapong, spokesperson for FTI’s auto industry club, said the two governments had recognized the problem, but the resolution had yet to be implemented by Vietnam.
“The FTI expects non-tariff barriers to remain a concern for automakers in Thailand as they see shipments to Vietnam have high operating costs and long delays in delivery to customers,” did he declare.
Since early 2018, Thai automakers have postponed shipments to Vietnam after Vietnam tightened regulations by inspecting all imported cars at the port of entry, resulting in a longer customs clearance process of 30 to 45 days. for delivery to local buyers, from 3 to 3. 4 days.
The regulations were released after Vietnam announced an import duty exemption for cars under the Asean Free Trade Zone last October.
Earlier this month, Thailand and Vietnam agreed in principle to push forward a Mutual Recognition Agreement (MRA) on automotive standards. Vietnamese officials have promised to pass the proposal on to transport authorities.
Thailand has many agencies to test fully built cars (CBUs) imported under the MRA.
The standards should help shorten the delivery process, as there is no need to perform repeated tests at Vietnamese ports.
Mr Surapong said non-tariff barriers caused Vietnam’s car imports to drop 75.7% to 12,389 vehicles from January to June, while imports from Thailand accounted for 81.8% of the total.
“Personally, I think Vietnam could extend the MRA standards to protect their local auto industry, which is nascent,” Surapong said. “Vietnam needs to produce between 400,000 and 500,000 finished cars to be part of the automotive supply chain.”
According to the Asean Automotive Federation, Vietnam’s auto production in the first half of the year edged up 1.6 percent to 101,459 cars.
On a related note, the club reported that Thailand’s auto production in July rose 15.1% to 183,119 units, driven by production for both domestic and domestic sales. export.
Compared with June, July saw a contraction of 3.1%, Mr. Surapong said.
Global auto production rose 11.7% to 1.24 million units from January to July.
Local sales in July increased 25.7% to 81,946 but compared to June sales were down 6.7%.
Car sales rose 20.2% to 571,064 units in the first seven months.
Car exports in July edged up 0.15% to 90,151 units, on improving global economic conditions.
The value of shipments in July rose 4% to 49.9 billion baht.
From January to July, car exports increased by 4.1% to 652,111 cars and the value by 2.8% to 341 billion baht.