The Ministry of Industry and Trade and other ministries will form an inter-sector team that will help prepare local automakers to face the impact of zero import tax on ASEAN automobiles.

From January 1, 2018, automobiles being imported into Viet Nam from the ASEAN region will not have to pay import tax.

The decision to help the country’s auto sector by setting up a special working team was taken on Monday at a regular government meeting held by Prime Minister Nguyen Xuan Phuc.

The team will include representatives from transport, finance and science and technology ministries and other agencies, who will study to understand how local automakers and importers function to ensure that this is compatible with the World Trade Organisation regulations and all free trade agreements that Viet Nam has committed to, especially those relevant to the auto sector.

Deputy Minister of Industry and Trade Do Thang Hai said the team must suggest ways to maintain, boost and support Vietnamese businesses to manufacture, assemble and import, at the same time ensuring that they are aligned to consumer interests. The team will submit a proposal to the prime minister on the most suitable methods before May 1, Hai said. — VNS