November 5, 2002

JAMA Responds to Vietnamese Government's Announcement of Expanded Motorcycle Parts Import Quotas

Yoshihide Munekuni, Chairman

On November 5, the Vietnamese government notified the three Japanese-affiliated manufacturers of motorcycles in Vietnam of the government's policy decision to provide a supplementary quota allowing the import of motorcycle parts.

In response, the Japan Automobile Manufacturers Association (JAMA) wishes to express its view that the expanded quotas have nevertheless been set at disappointingly low levels for the current year, and that this outcome results from the Vietnamese government's delay in addressing issues raised by its announcement on September 4.

Vietnam's shift in policy with respect to the import of motorcycle parts does, however, appear to clear the way for the aforementioned companies to resume local production operations, whose temporary suspension as a consequence of the September 4 announcement was a source of serious concern to JAMA.

To enable these companies to resume plant operations promptly, JAMA hopes that all related procedures including customs clearance will be carried out with optimum efficiency.

JAMA intends to closely monitor the important changes that are expected in Vietnam's motorcycle policies as of next year and stands ready to appeal to the Vietnamese authorities should such action be necessary.

JAMA is now appealing to the Vietnamese government to give all due consideration to the formulation of its anticipated new policies targeting the motorcycle industry in the interest of avoiding situations that could jeopardize JAMA member manufacturers' future investment activities in Vietnam and their beneficial contribution to the Vietnamese economy.

[See summary review of related developments in attached reference material.]

[Expanded Motorcycle Parts Import Quotas]

(Unit: motorcycles)
Additional New Quotas Previous Quotas
Honda 110,000 280,000
Yamaha 17,000 50,000
Suzuki 5,000 35,000
Total 132,000 365,000

[New Vietnamese Motorcycle and Motorcycle Parts Export/Import Policies for 2003 to 2005 (Overview)]

  • Implement Quality Audit:
    --- Introduce type approval system.
    --- Establish proof of parts origin.
    --- Quality control system accreditation (ISO9001).
  • New Customs Policies:
    --- Lift ban on completely build unit (CBU) imports, assess minimum
    import tariff of 100%.
  • Decisions on aforementioned measures to be implemented from January 1, 2003.
  • To promote aforementioned decisions, no new investment licenses to be issued from November 1, 2002.

[Developments to Date]

September 4, 2002 Announcement by Vietnamese government of new motorcycle parts import quotas.
September 20 Submission of JAMA requests to Japan's Ministry of Economy, Trade and Industry.
September 29 Filing of appeal with Embassy of Vietnam in Japan (first appeal).
September 30 - October 1 Dispatch of first public/private-sector joint mission to Vietnam.
October 3 Conference between Japan's Keidanren (Federation of Economic Organizations) and CPV General Secretary Nong Duc Manh of Vietnam.
October 4 Conference between JAMA Chairman Yoshihide Munekuni and Deputy Prime Minister Vu Khoan of Vietnam.
October 4, 2002 Conference between Minister of Economy, Trade and Industry Takeo Hiranuma of Japan and Minister of Planning and Investment Vo Hong Phuc of Vietnam.
October 16-18 Dispatch of second public/private-sector joint mission to Vietnam.
October 25 Filing of appeal with Embassy of Vietnam in Japan (second appeal).
November 5 Announcement of expanded import quotas by Vietnam's government.