Import ban on used machines hits Japan investment

HCMC - The ban on import of machineries and equipment that have been used for over 10 years has negatively affected Japanese investment activity in Vietnam.

Speaking at the opening ceremony of the international machinery exhibition MTA Vietnam 2017 in District 7, HCMC on Tuesday, Takimoto Koji, chief representative of the Japan External Trade Organization (JETRO) in HCMC, said Vietnam is an attractive destination for Japanese investors. However, the import ban on certain secondhand machinery has deterred Japanese investors from setting up shop in Vietnam.

He said when Japanese companies move their production abroad, they would bring along their used machines and equipment which are still in good condition. Therefore, Japanese firms suggested Vietnam allow businesses to freely import used machines.

The suggestion was earlier sent by the Japanese Business Association to the Ministry of Science and Technology and other ministries and agencies. According to the association, the import restriction on secondhand machinery affects business expansion and foreign investment in Vietnam.

Circular 23/2015/TT-BKHCN which replaces Circular 20/2014/TT-BKHCN stipulates that machinery, equipment and production lines that have been used for over 10 years are prohibited from being imported into Vietnam from July 1, 2016.

However, many domestic and foreign companies have described the regulation as inappropriate because many machines manufactured in Japan and the EU could be used for up to 20 years.

Circular 23 still offers some leeway for machine importers. If companies want to import over-ten-year-old machines to maintain their operation, the Ministry of Science and Technology will examine their documents and coordinate with relevant ministries and agencies to decide whether their machines can be brought into the country or not.

Source: The Saigon times