Requirements for automobile manufacturing and assembly in Vietnam

Requirements for automobile manufacturing and assembly in Vietnam

Requirements for automobile manufacturing and assembly in Vietnam are governed by Decree No.116/2017/NDCP dated 17th October, 2017 and No. 17/2020/ND-CP dated 5th February, 2020 of  Vietnam Government on requirements for manufacturing, assembly and import of automobiles and trade in automobile warranty and maintenance services  (Hereafter called Decree 116).

I.Requirements for automobile manufacturing and assembly in Vietnam:

The automobile manufacturer/assembler established according to regulations of law shall be issued with the certificate of automobile manufacturing/assembly when the following requirements are fully satisfied:

1. Facilities:

a) The manufacturer/assembler has the legal rights to use the factory, assembly line, welding line, painting line, quality control line and testing road meeting the minimum requirements stated in Appendix I attached to Decree 116;
b) The automobile warranty/maintenance center owned/leased by the manufacturer/assembler or belonging to the dealer network authorized by such manufacturer/assembler meets the requirements mentioned in Decree 116.

2. Each technician responsible for automobile production line and assembly line has at least a bachelor’s degree in mechanical engineering or automobiles and at least 5-year experience of automobile manufacturing or assembly.

3. There are sufficient personnel and plans to ensure occupational safety and hygiene in accordance with regulations of law on occupational safety and hygiene.

4. The manufacturer/assembler fulfills all fire safety requirements and plans under regulations of law on fire safety.

5. The automobile factory has sufficient documents on environmental safety approved by a competent authority according to regulations of law on environmental safety.

II.Issuance of certificates of eligibility for automobile manufacturing/assembly

1. The Ministry of Industry and Trade of Vietnam shall have the power to issue certificates of eligibility for automobile manufacturing/assembly.

2. An application for issuance of the certificate of eligibility for automobile manufacturing/assembly includes:
a) A completed application form provided in the specimen No. 1 of Appendix II attached to Decree 116;
b) A copy of the enterprise registration certificate or equivalent documents;
c) A copy of the list of equipment used for the production line or assembly line mentioned in Point a Clause 1 Article 7 of Decree 116;
d) A copy of the notes and layout of the automobile factory;
dd) A copy of the notes and layout of the automobile testing road;
e) A copy of any relevant degree of the technician responsible for automobile production line or assembly line;
g) A copy of the document proving that the manufacturer/assembler’s automobile warranty/maintenance center meets the requirements stated in Decree 116;
h) A copy of the document proving the fulfillment of occupational safety and hygiene, fire and environmental safety in accordance with regulations of law.

3. Procedures for issuance of the certificate of eligibility for automobile manufacturing/assembly:

a) The automobile manufacturer/assembler (applicant) shall submit 1 set of application mentioned in Clause 2 this Article, in person, by post or in any other satisfactory manner, to the Ministry of Industry and Trade;
b) If the application is invalid, the Ministry of Industry and Trade shall make a request for additional documents to the applicant within 5 working days from the day on which the application is received;
c) If the application is valid, the Ministry of Industry and Trade shall notify the applicant of specific time for an inspection visit to the applicant’s factory within 5 working days from the day on which the application is received. Time limit for the inspection visit is 15 working days from the date of notification.
If the inspection results are not satisfactory, the Ministry of Industry and Trade shall inform the applicant of the fulfillment of requirements within 5 working days from the day on which the inspection visit is done;
d) The certificate of eligibility for automobile manufacturing/assembly (provided in the specimen No. 4 of Appendix II attached Decree 116) shall be issued within 5 working days from the day on which the inspection results of the application are given and the inspection visit is satisfactory. If the application is rejected, the Ministry of Industry and Trade shall provide the applicant with a written explanation;
dd) The applicant shall receive the certificate of eligibility for automobile manufacturing/assembly, in person, by post (if required) or in any other satisfactory manner, from the Ministry of Industry and Trade.

LAWYER VIETNAM LAW FIRM