Thailand is calling on Vietnam to improve its customs clearance procedures after cutting import duties on built-up vehicles to zero under the Asean Free Trade Area (AFTA) agreement at the beginning of the year, according to local reports.
Thailand has complained that non-tariff barriers are hampering its exports of built-up vehicles to that country.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Many Thai-based vehicle manufacturers were forced to suspend shipments earlier this year after the new regulations were introduced.
A key area Thailand wants Vietnam to improve is its environmental and emissions testing procedures which are carried out by Vietnam's single designated laboratory.
Thailand's trade negotiation department director-general Auramon Supthaweethum has called on the Vietnamese to adopt mutual recognition arrangements for vehicle testing and homologation.
She was quoted by Thai press as saying Vietnam had only one automotive testing agency which takes around 30 days to complete its procedures for a car to clear customs.
Auromon called on Vietnam to accept tests carried out at Thai laboratories and thus reduce inspection duplication and speed up customs clearance.
Thailand is also concerned about the possibility of a 25% import tariff being introduced by the US on its auto parts which are estimated to account for 1% of that country's US$290bn total auto parts imports.
Auromon said a team was being put in place for when the US' nine-month investigation into parts imports is expected to be completed.
