Businesses protest plan to curb import of used machinery with revised Circular 20

“To be honest, a 20-year-old machine made in Sweden is better than a brand new one produced in China.”

The proposed circular would only help Chinese companies dominate the market by forcing small and medium businesses to buy cheap machinery from the neighboring country.

Truong Quoc Tuan, CEO of T.A.T Machinery Corporation, said in the last 14 years since he started importing machinery from developed countries like Japan, machines less than 10 years old have been accounting for just 1 percent of the trading in the market.

Businesses are reluctant to buy Chinese machines even if they are new since the quality cannot be compared with those made in Europe, Japan or the US 10 years earlier, he said.

It is because machines can last 30 or 50 years, he said.

Nguyen Van Dong, chairman of Vietnam Printing Association, called the ban “unreasonable,” “impractical” and “baseless,” arguing that machines used in different sectors have different life expectancies.

He doubted whether it is possible to decide if a machine is “80 percent new.”

hardware-index-topWith a young industry, Vietnam needs to take advantage of proven technologies from developed countries instead of making it more difficult for local businesses, especially small and medium ones

Without standards for estimating the quality of used machinery, the regulation would subject businesses to additional paperwork that would cost them time and money.

Japanese businesses, saying that many of them plan to move from China to Vietnam, warned that the ban, if imposed, would discourage foreign investors.

The ban, if applied, could create barriers for foreign investors moving their existing manufacturing facilities to developing countries like Vietnam. Since machines would be imported from various countries, it would be very difficult for the company to have them tested in accordance with the draft regulation.

Vietnam does not need this but rather standards related to health, safety and environment to control the import of used machinery as developed countries do. Circular 20 should be eliminated, not revised.

Read more …

Businesses protest Vietnam’s plan to curb import of used machinery, Mar 17, 2015
Request for comments regarding revised circular to replace Circular 20, Imports of Used Machinery, Equipment, and Production Lines
Comment from AmCham Customs & Trade Facilitation Committee, Mar 17, 2014