Motorcycle assembly

Motorcycle assembly

 

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INDUSTRY, SUB-SECTOR CONDITIONS RESTRICTING MARKET ACCESS LEGAL GROUNDS

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Motorcycle assembly

1. ACIA: must comply with the Government’s planning which may provide more incentives for domestic investors.

For the sub-sector of manufacturing and assembling means of transport: production projects/investments in these industries must comply with specific requirements for domestic raw materials[1], engineering, and/or environment and/or quality that may be inconsistent with the national treatment provision in ACIA.

 

2. CPTPP: Appendix NCM II-VN-28

For the sub-sector of manufacturing and assembling buses and vehicles with more than 29 seats: Vietnam reserves the right to apply and maintain measures not consistent with Article II.9.1.(h) against enterprises have foreign investment capital in the above sub-sectors.

3. EVFTA: Appendix 8-B:

– For the manufacture of motor vehicles, trailers and semi-trailers: Unlimited, except excluding investment in car production and assembly (ISIC 3410) must be based on the Government’s planning government, this plan can be more favorable for domestic investors[ 2]

– For motorcycle production (part of ISIC rev 3.1: 3591): No restrictions, except that investment in motorcycle production and assembly (ISIC 3591) must be based on the Government’s planning, this planning may give more incentives to domestic investors.

– EVFTA, CPTPP, ACIA.

– Decree No. 116/2017/ND-CP dated October 17, 2017 of the Government stipulating the conditions for manufacturing, assembling, importing and providing automobile warranty and maintenance services.

– Decree No. 17/2020/ND-CP

dated February 5, 2020 of the Government amending the Decree related to business investment conditions in the field of state management of the Ministry of Industry and Trade.

[1] For greater clarity, the requirement for domestic raw materials is not a requirement for localization.

[2] To illustrate, a domestic manufacturer of motorcycles may be prioritized in terms of production volume to meet domestic market demand and location preference.