Should the Import of Used Computers Prohibited?

1:45:18 PM | 7/24/2006

A content of the Decree 12/2006/ND-CP by the Government is to prohibit the import of used computers. However, after two months, from May 1, 2006, when the decree was issued, there have not yet been any concrete guidelines on the list and conditions for enterprises to observe the decree. Distribution enterprises have expressed their resentment as their supplies were cut while the market’s demand continues to rise.
Opinions of consumers and enterprises
Nguyen Huu Viet, director of the Viet Cuong Trade and Information Technology Joint stock Company and chairman of the Association of Used Computer Import and Distribution Enterprises, said: “Since the decree took effect, not only enterprises like us have suffered losses but also consumers have suffered as they have to buy new computers at prices, three time higher than, used computers, but they are not satisfactory.”
In fact, the Vietnamese Government has approached a nationwide universalisation of computing science, having implemented the Project 112 as a solution. Used computers have contributed 90 per cent of the project and have helped the Government save a huge amount. The demand of users is very simple as they do not need a super microchip or modern technology as they are learning basic skills. Therefore, they do not need to waste money buying new and expensive computers.
Nguyen Van Phuoc, director of the Bac Khoa 4 Company, a member of the Association of Used Computer Import and Distribution Enterprises, said that his company had specialised in providing computers to the project and had provided hundreds of computers for training programmes for schools, ranging from primary to senior secondary. In fact, the major part of capital for buying computers at educational establishment is contributed by students, so if new computers are bought, students and pupils will have to bear a financial burden.
Meanwhile, the market demand remains high. Also according to Viet, his company has continued to receive many orders from customers. For example, the Education and Training Bureau of Thuan Thanh district, Bac Ninh province, has placed an order of 200 sets of computers; the Anstank Mai Dong Technology School, 200 sets; the Sara Group, 300 sets and the Huy Thanh Company, 200 sets. Viet said that customers had placed orders with his company as it had operated for years and created its prestige. In terms of quality, Viet said that his company had imported only computers that had been used for less than four years and were equal to 80 per cent of brand new computers, to meet environmental requirements while offering customers cheap computers.
Those enterprises operating directly in the field said that the prohibition of used information technology products would throw away an opportunity to use hi-tech products at cheap prices while Vietnam was left far behind in the field. This is also a part of the US’s proposal during negotiations on Vietnam’s accession to the World Trade Organisation (WTO). The US proposed Vietnam to allow the import of used and renewed electronic and computer accessories and Vietnam has to have specific policies for used and renewed goods (renewed goods are those which have been or have not been used yet but need being renewed. These goods have to have guarantee in terms of quality and lifetime).
Opinion of managers
The opinion of the Department of Import and Export, the Ministry of Trade, is that the import of used computers may produce a huge impact in the environment in Vietnam in the future, as waste from computers’ hardware is impossible to treat. However, Vietnam will join the WTO very soon, so it will be compulsory to observe the market rule and the rules of the market economy. Therefore, any protection will certainly no exist.
Bui Duc Quang, deputy head of the Industry and Information Technology, the Ministry of Post and Telematics, said that the prohibition of the import of used computers did not impact much on enterprises, specialising in manufacturing and assembling computers with proper investment strategies. Responsible for issuing lists of information technology equipment and accessories, which are prohibited to be imported, the Ministry of Post and Telematics is considering comments of some ministries and agencies, such as the Ministry of Trade and the Ministry of Finance, that the ministry should not prohibit many goods, which may produce negative impacts on production and business activities of many enterprises. It is expected that the ministry will prohibit those goods, which are popular and intensively imported, or those can be made by local enterprises.
Quang stressed that the opinion of the Ministry of Post and Telematics was not to encourage the import of used electronic items and computers to avoid a massive import of hi-tech waste, causing damage to users. At the same time, this will boost the development of local manufacturing of information technology products. However, the ministry will consider allowing the import of renewed products, but they have to meet some conditions on manufacturing time, guarantees and manufacturers in order to protect the interest of consumers. The list of goods prohibited will not include devices of specific purposes, helping Vietnamese enterprises have an opportunity to use hi-tech products at reasonable prices. This has also offered a new hope for local used computer import and distribution enterprises.
Kim Phuong