Vietnam's Deputy Prime Minister orders easing of auto technology transfer bans

Deputy Prime Minister Hồ Quốc Dũng directed the Ministry of Science and Technology, the Ministry of Construction and other related ministries to remove obstacles stemming from Decree 101, which restricts the transfer of technology for producing and assembling automobiles and engines that meet Euro 5 (and Euro 4) emission standards. The ministries are to review the decree, consider excluding Euro 5 and Euro 4 automotive technologies from the restricted list, and report progress to the Prime Minister by 25 July.

Industry groups, notably the Vietnam Automobile Manufacturers' Association (VAMA), argue that the restriction is out of sync with the current emission‑standard roadmap, could increase compliance costs, deter investment, and shift the market toward imported vehicles and parts. The government is also examining licensing procedures for technology already transferred before the decree's effect and addressing similar concerns for motorcycles and related equipment.