Set up a car maintenance company in Vietnam

In an increasingly developing market economy, industrialization, and modernization, cars have become familiar vehicles in Vietnam. Accordingly, the car repair and warranty service technology industry is also an appealing business field. Accordingly, to establish a company doing business in the car maintenance industry, owners are required to clearly understand the legal regulations on business conditions in this industry. The article below from Viet An Law Firm will provide clients with information about the conditions to set up a car maintenance company in Vietnam.

Legal basis

• Schedule of WTO and CPTPP commitments;
• Law on Investment 2020;
• Decree 116/2017/ND-CP regulating conditions for production, assembly, import, and business of car warranty and maintenance services, as amended and supplemented by Decree 17/2020/ND-CP.

What is a car maintenance company?

According to the definition in Article 3 of Decree 116/2017/ND-CP, a car maintenance company is an organization that meets the legal conditions to carry out warranty and maintenance of cars according to the instructions of car manufacturing and assembling enterprises to maintain the normal operating state of the car.

Accordingly, information about qualified maintenance facilities is disclosed by car manufacturing, assembling, and importing enterprises when consumers purchase goods from these facilities to serve vehicle maintenance needs. Maintenance facilities are usually owned by manufacturing, assembling, or importing enterprises, signed by leased manufacturing, assembling, or importing enterprises, or authorized in the form of an agent system to meet the conditions for facilities when registering for establishment and at the same time is convenient in management.

Market access conditions for foreign investors in Vietnam

Currently, Vietnam’s commitments in the WTO only apply to machinery and equipment repair and maintenance services (CPC 633) and aircraft maintenance and repair services (CPC 8868) and do not include maintenance services for vehicles and other transport equipment such as cars. Within the CPTPP framework, Vietnam currently does not make any reservations regarding maintenance-related services. Therefore, foreign investors, especially from CPTPP member countries, still can be granted investment certificates in Vietnam in this field if they meet the same conditions as domestic investors.

Conditions to set up a car maintenance company in Vietnam

The car maintenance service business is a conditional business line according to the provisions of Article 7 of the Investment Law 2020. Accordingly, when establishing a business company in this field, investors must Need to meet specialized regulations guided in Decree 116/2017/ND-CP on car maintenance business to be granted a Certificate of car warranty and maintenance facility.

Specifically, the conditions specified in Article 21 of this Decree are as follows:

Conditions for commitment to technical support

To create consistency in the management of production, assembly, import, and car warranty and maintenance, the operating conditions of these facilities are closely related to each other. To be granted a Certificate of car warranty and maintenance facility, the maintenance facility must commit to providing technical support and components and accessories for the business’s car warranty and maintenance. Domestic and foreign car manufacturing and assembly enterprises (in the case of providing maintenance services to car import enterprises).

Infrastructure conditions

• The maintenance company’s workshop must be built on land under the legal use rights of the enterprise; The legal basis of legal land use rights can be a certificate of land use rights and assets attached to land, Land use right lease/borrowing contract, Decision on land allocation/land lease.
• The premises and workshop where maintenance is carried out ensure enough space to serve the performance of warranty and maintenance.
• There are areas to perform the work of receiving, handing over, maintenance, repair, and factory inspection, with an operator, a warehouse for components and accessories, and a car washing area to meet the job;

Equipment conditions

• Tools and equipment for car maintenance work must be fully equipped;
• Measurement equipment for car maintenance work must comply with the provisions of the law on measurement;
• Have equipment to diagnose the engine and technical condition of the vehicle (for cars equipped with electronic controllers) suitable for the types of vehicles maintained by the facility;
• Diagnostic equipment software must comply with intellectual property regulations (not infringing on copyright or industrial property rights registered for components of patent owned by other entities);

Conditions of company personnel

• The maintenance company must have a human resources team and a quality management system to ensure quality for car warranty and maintenance. Meeting this condition is proven based on personnel qualifications related to vehicle maintenance and internal training certificates of manufacturing, assembling, and importing enterprises.
• The facility needs to have at least one technical person in charge. The person in charge of the facility’s technical department has a degree or training certificate related to vehicle maintenance and repair techniques or equivalent and has at least 5 years of experience. Each working position needs to have at least one technician. Particularly, technicians performing vehicle test driving tasks must have an appropriate, valid driver’s license (according to Article 4.4 TCVN 11794).

Meets national standards for car maintenance facilities

The above conditions of car warranty and maintenance facilities must meet the requirements for premises, equipment, tools, human resources, and quality management systems for maintenance and repair facilities. cars according to corresponding types of cars in National Standard TCVN 11794 for maintenance and repair facilities for cars and similar vehicles.

Accordingly, the standard sets out the following main requirements:

• Requirements for premises and areas of the Facility, minimum size of working positions corresponding to each type of vehicle being maintained;
• Minimum work performed at the Facility;
• Minimum equipment and tools;
• Require human resources and a quality management system.

In the newly amended decree, the conditions on occupational safety and hygiene, fire prevention, and environmental protection have been omitted to create favorable conditions for car maintenance businesses to establish and operate. However, these conditions have also been integrated into the national standards and are met by car maintenance businesses in practice.

Procedures for issuance of Car Maintenance Facility Certificate

After completing the procedures for establishing a company with a record of car maintenance business at the Ministry of Planning and Investment (having been granted a valid Enterprise Registration Certificate), the enterprise continues to carry out the procedures for granting a Certificate of car maintenance facility before conducting actual business activities according to the following steps:

Step 1: Submit application

The enterprise submits 01 set of licensing documents to the Vietnam Register under the Ministry of Transport – the agency with the authority to issue the Certificate of car warranty and maintenance facility. According to Article 22 of Decree 116/2017/ND-CP, licensing documents include:

Step 2: Receive documents

Enterprises submit applications directly or via postal system or other appropriate forms to the Inspection Agency:

• In case the dossier is incomplete or not in accordance with regulations, within 05 working days from the date of receiving the dossier, the inspection agency shall send a written request to the warranty and maintenance facility to supplement and complete it according to the regulations. regulations;
• In case the dossier is complete and valid, within 05 working days from the date of receiving the dossier, the inspection agency will notify the time and conduct the actual inspection and assessment of the warranty and maintenance facility. . The inspection time limit is no more than 15 working days from the date of notification;
• Immediately after completing the inspection, the inspection agency will notify the warranty and maintenance facility of the inspection results and take measures to correct unsatisfactory items (if any).

Step 3: Granting Certificate

• The car maintenance facility certificate is issued within 05 working days from the date of satisfactory dossier appraisal and actual inspection results. In case of refusal to issue a Certificate, the Inspection Agency shall respond in writing and clearly state the reason.
• Enterprises receive the Certificate directly at the Inspection Agency or through the postal system (if required) or in other suitable forms.

Note: Within 06 months from the date of the first assessment, if the warranty or maintenance facility does not fix the unsatisfactory items, the evaluation results and registration documents of the warranty facility will be issued. Maintenance will be canceled and the Inspection Agency will notify the warranty and maintenance facility in writing. If the warranty or maintenance facility wishes to continue to be certified, it will have to re-implement the prescribed order and procedures.

Set up a car maintenance company in Vietnam service of Viet An Law

• Consulting on procedures for establishing a car maintenance company;
• Draft and complete documents and directly work with competent authorities related to company establishment procedures;
• Monitor and supplement documents on behalf of clients when requested by competent authorities during the procedure;
• Receive results and hand over licenses to clients according to the contract;

For clients who have related questions or need assistance with documents or establishing a car maintenance company, please contact Viet An Law Firm for the best support.