Substandard Auto Makers To Close Down in 2006

Enterprises either lacking supplementary investments or unable to assemble and manufacture automobiles will be forced to stop operation after March 31, 2005.

 

This is a major content of Deputy Prime Minister Nguyen Tan Dung’s recent Decision 1272 on the implementation of the Automobile Industry Development Plan. Following governmental guidance, the Ministry of Industry will join ministries, provinces and cities to examine and evaluate auto enterprises so as by December 31 to verify enterprises that have not fully invested or not met conditions .

 

The decision also indicates that enterprises not investing supplementary capital or not meeting the conditions shall only be permitted to manufacture, assemble, make registration formalities, and sell up, by the end of December 31, all component sets imported prior to July 1.

 

Apart from the 13 auto joint ventures, 16 domestic enterprises have been licensed to manufacture and assemble autos. However, several automakers say among these are local companies, which have been granted licenses in an easy manner.