Deputy Prime Minister Ho Quoc Dung told ministries to review problems with the new rules after businesses complained. They must report back to the Prime Minister by July 25.

One of the most debated points is classifying Euro 5 automotive technology as restricted.

There seems to be a contradiction: Euro 5 vehicles are legal, but companies may need approval to transfer the technology to make them.

Technology that is legal still needs permission.

Companies can still make, sell, and export vehicles that meet the Euro 5 standard.

However, they may need approval to transfer the technology to make these vehicles in Vietnam.

This difference is the main concern with the new rules.

Putting Euro 5 technology on the restricted list does not ban its use or production.

It changes how technology transfers are approved, requiring administrative approval instead of standard procedures.

For an industry with constantly evolving technologies, getting approval may not be a one-time process. It could be an ongoing requirement.

The main question is whether this requirement is necessary.

Euro 5 is Vietnam's current emissions standard for new vehicles.

If vehicles meeting this standard are already approved, why should the technology to make them need separate approval?

If the goal is to assess technology quality, policymakers should explain how it will be evaluated and what value it adds.

These are questions that need clear answers when new rules are introduced.

If environmental protection is the goal, Vietnam already has regulations like emissions standards and product inspections.

The question is whether an additional approval process would reduce emissions or just increase costs.

There are risks for investment and localization.

The Vietnam Automobile Manufacturers' Association has not challenged the government's goals.

The association suggests removing Euro 5 from the restricted list and introducing clearer rules for export technologies.

There is a practical concern behind these suggestions.

More approval procedures could delay investments, increase costs, and slow new vehicle introductions.

More importantly, the policy could affect Vietnam's industrial strategy.

Increasing local content requires technology transfers and domestic production expansion.

If technology transfer becomes complicated, companies might keep production overseas and import finished products.

This could undermine efforts to strengthen Vietnam's automotive manufacturing.

Regulate risk, not every technology.

Businesses are not against government oversight.

Their concern is the additional administrative procedure.

The Ministry of Industry and Trade suggests exempting export-oriented technologies and focusing on risk-based regulation.

This approach reflects a shift toward regulating based on risk.

Instead of approving every technology transfer, regulators could focus on high-risk technologies.

Established technologies could be managed through monitoring and enforcement.

This approach aligns with Vietnam's institutional reforms, which aim to reduce pre-approval requirements and compliance costs.

If Vietnam wants to attract new manufacturing technologies, it should offer a stable and predictable legal environment.

What investors want is a stable, transparent, and predictable environment.

The debate over Euro 5 is about more than emissions standards or a single regulation.

It raises a question about how Vietnam should attract advanced technologies: through more approvals or a better regulatory framework?

Tu Giang