Vietnam's motorcycle parts import ban affects Thai manufacturers
Vietnam will soon ban the import of motorcycle parts and components in a move to
protect its domestic industry and reduce the trade deficit.
Vietnam's industry ministry recently invited those affected to make comments and
recommendations on the possible impact of the proposed ban, according to
Thailand's Business Economics Department.
Hanoi will ban imports of 25 items that can be made locally, including exhaust
pipes, batteries, bodies, brakes, horns, saddles, gearboxes, kick-starters and
chain guards.
The products are made by at least five firms in Vietnam, of which one is
wholly-owned by Taiwanese.
The rest are joint ventures with investors from Thailand, Laos and Japan.
Boontipa Simaskul, the department's director-general, said Thai firms exporting
components to Vietnam should invest in the country, which she believed was
trying to protect its industry from an influx of products from China.
In the first seven months of this year, Thailand's shipments to Vietnam totalled
US$79.3 million.
Between 1997 and last year, annual shipments doubled in value to $165 million.
By Woranuj Maneerungsee - The Bangkok Post - September 24, 2001.
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