News

At a glance…

On 19 April, the Prime Minister issued Decision No. 18/2019/QD-TTg setting out
rules for the importation of used machinery, equipment and technology related to
production.
Below are some notable changes in this Decision:

Notable contents of Decision No. 18/2019/QD-TTg

Some new conditions for importation of used machinery and equipment:

– Generally, used machinery and equipment can be imported if it is no more than 10 years old. However for
used machinery and equipment in some specific cases (i.e. the mechanical, wood manufacturing and
paper and pulp production sectors), the permissible age is increased to 15 or 20 years.

– Moreover, used machinery and equipment must have been manufactured based on standards which
conform with Vietnam’s National Standards on safety, energy saving and environment protection. In the
absence of applicable National Standards, the imported machinery and equipment must conform with
national technical standards or national standards of one of the G7 countries.

Importation of used production technology is only allowed when certain criteria are fulfilled, such as:

– It must comply with National Technical Regulations (QCVN) on safety, energy saving and environmental
protection. If there are no corresponding National Technical Regulations, it must comply with the National
Standards (TCVN) of Vietnam, or the national technical standards of G7 countries or South Korea.

– In terms of remaining capacity/efficiency, used technology for production must attain 85% or more of
designed capacity, and consumption of materials and energy should not exceed the designed usage by
more than 15%. It should not be listed as a prohibited/ restricted transfer, and must be used in at least
three factories in countries of the Organization for Economic Co-operation and Development (OECD).
Decision 18 sets out the required documents and procedures for the importation of used machinery and
technology as well as regulations on the inspection of such items. This Decision will take effect from 15 June.

Translation: Tiếng Việt