Decision No. 115/2004/QĐ-BCN on issuing the Standards for automobile manufacturing and assembly enterprises

DECISION OF THE MINISTER OF INDUSTRY

Regarding the issuance of the Standards for automobile manufacturing and assembly enterprises

manufacturing and assembling automobiles

THE MINISTER OF INDUSTRY

On the basis of Decree No. 55/2003/NĐ-CP dated May 28, 2003 of the Government on the functions, tasks, powers, and organizational structure of the Ministry of Industry;

Pursuant to Decision No. 175/2002/QĐ-TTg dated December 3, 2002 of the Government approving the Strategy for the Development of the Automobile Industry in Vietnam until 2010, with a vision until 2020;

Pursuant to Decision No. 177/2004/QĐ-TTg dated October 5, 2004 of the Government approving the Planning for the Development of the Automobile Industry in Vietnam until 2010, with a vision until 2020;

To ensure investment in automobile manufacturing and assembly according to the planning and achieve effectiveness; products must meet quality standards and have high competitiveness in the market;

At the proposal of the Director of the Science and Technology Department,

DECISION:

Article 1: This Decision attaches the "Standards for automobile manufacturing and assembly enterprises".

Article 2This Decision shall take effect fifteen days from the date of publication in the Official Gazette.

Article 3. The Director of the Ministry's Office, the Inspector General of the Ministry, Department Heads, Bureau Chiefs, Heads of units under the Ministry, Chairmen of Provincial People's Committees directly under the Central Government, and organizations and individuals related shall be responsible for implementing this Decision.

REGULATIONS

Standards for automobile manufacturing and assembly enterprises

(Issued together with Decision No. 115/2004/QĐ-BCN

dated October 27, 2004 of the Minister of Industry)

PART I

GENERAL PROVISIONS

Article 1. Scope and Applicability

This document stipulates standards for enterprises of all economic sectors established in accordance with the law and operating in the field of automobile manufacturing and assembly, including passenger cars, buses, and trucks, except for foreign-invested enterprises that have been granted investment licenses before the effective date of these regulations.

Article 2. Interpretation of Terms

In this document, the following terms are understood as follows:

1. Passenger cars, buses, and trucks are automobiles defined in TCVN 7271:2003; TCVN 6211:2003.

2. Assembling automobiles is the process of assembling from components, sub-assemblies, parts, and complete assemblies to produce complete automobiles.

3. Assembling complete assemblies is the process of assembling from components to form complete sub-assemblies such as engines, gearboxes, chassis, bodies, driver compartments, passenger compartments, cargo compartments...

4. Automobile chassis is the structural system designed to support the engine, driver compartment, vehicle body, passenger compartment, steering system, wheel assemblies, power transmission systems, and other parts of the automobile.

5. Automobile body consists of the entire chassis, body shell, and floor.

Chapter II

STANDARDS FOR AUTOMOBILE MANUFACTURING AND ASSEMBLY ENTERPRISES

Article 3. General Standards

Enterprises engaged in automobile manufacturing and assembly must meet the following conditions:

1. They must have a feasibility study report reviewed and approved in accordance with current state regulations on investment management and construction; the assembly capacity (for one production shift) must be at least 3,000 vehicles per year for passenger cars, 5,000 vehicles per year for trucks up to 5 tons, 3,000 vehicles per year for trucks from 5 to 10 tons, 1,000 vehicles per year for trucks over 10 tons, and 10,000 vehicles per year for small cars.

2. The production area and factory must have sufficient floor space to accommodate production and assembly lines, inspection facilities, design rooms, technology rooms, quality testing laboratories, component storage areas, production control zones, waste treatment facilities, parking lots, test driving tracks, and other auxiliary structures. The factory must be constructed in accordance with local industrial development plans, on land legally owned by the enterprise or leased for a minimum of 20 years.

3. Each type of automobile produced and assembled by the enterprise must have complete design documentation, which must be reviewed and approved by authorized agencies in accordance with current regulations; it must not infringe on intellectual property rights and must have a technology transfer agreement licensed from the original manufacturer regarding one of the following: product design models, brand names, trade secrets, technical information, training.

4. The production and assembly workshop area, including welding, painting, and inspection sections, must be arranged according to appropriate technological processes. Overall and detailed production and assembly process diagrams must be properly displayed in workshops for workers to follow. The factory floor must be coated to prevent slipping and marked with clear boundaries between safe walkways and work areas.

5. There must be adequate equipment to ensure industrial hygiene, labor safety, reduction of harmful factors (noise, heat, dust), fire prevention, and waste treatment (solid, liquid, gas) in compliance with current regulations; ensuring a clean, environmentally friendly, and civilized industrial environment.

6. There must be a separate test track with a minimum length of 500 meters, capable of meeting technical requirements to test the quality of assembled vehicles before they leave the factory on various terrains such as flat, gravel, rough, flooded, uphill-downhill, turns, and slippery conditions.

Article 4. Assembly production line

1. The assembly line for frames and bodies must be equipped with at least the following main equipment:

a) Standing spot welding machines, hanging spot welding machines, roller welding machines, Mig welding machines, Tig welding machines, along with dedicated welding equipment and fixtures;

b) Pneumatic nail driving equipment;

c) Hoisting and lowering systems, dedicated carrier pusher vehicles along the line, and guiding rail systems for carrier pushers;

d) Fixtures for welding and assembling side sills, roof, floor, rear end, and for installing subframes and body shells on passenger cars; fixtures for welding and assembling cross members on buses and trucks;

đ) Steel sheet stretching equipment for buses;

e) Fixtures for installing cargo boxes onto the body for trucks;

g) Specialized fixtures for joining body panels and car body assemblies to the frame;

h) Auxiliary equipment and repair tools.

2. The assembly technology line for complete units and automobiles includes: assembly of complete units, undercarriage systems, rear axle, front axle, and engines into the frame, main control units, interior equipment, door systems, and side doors of the automobile body...

In addition, the assembly line is also equipped with auxiliary equipment such as: compressed air supply systems, dedicated transport vehicles, pneumatic bolt and nut tightening guns; engine mounting fixtures onto the frame and body; specialized fixtures for mounting undercarriages (with lifting devices for passenger cars and light trucks); pit systems for mounting undercarriages on buses and trucks; tire installation machines; dedicated dynamic balancing machines, etc.

3. The quantity, types, and technical characteristics of equipment, tools, and fixtures for the assembly line must be compatible with the product types and production scale approved in the Feasibility Study Report of the Project.

Article 5. Painting Technology Line

1. Depending on the requirements of each type of assembled vehicle, enterprises must equip automatic or semi-automatic painting lines suitable for the following main processes:

a) High-pressure water cleaning;

b) Oil and grease removal and surface treatment;

c) Acid washing tank, mineral removal tank, and volume adjustment tank;

d) Phosphating;

đ) Electrolytic dipping paint tank, spray booth (electrostatic spray, pressure spray), drying booth;

e) Application of PVC to weld seams and application of plastic sealant to the underside of the vehicle to prevent water penetration;

g) Decorative coating, topcoat, and waxing to protect the paint.

2. Technical requirements for painting technology:

a) For passenger cars (up to 9 seats): the body must be electrocoated (electrostatically painted) inside; the outer layer of the body can be electrostatically sprayed or pressure-sprayed.

b) For buses: frames and bodies up to 15 seats must be painted like passenger car bodies; frames and bodies from 16 seats and above may be electrostatically sprayed or pressure-sprayed for the first two years of production. After this period, enterprises must apply electrostatic spraying technology.

c) For trucks: all types of frames and truck bodies with a carrying capacity up to 3.5 tons must be painted like passenger car bodies. Truck bodies with a carrying capacity over 3.5 tons may be electrostatically sprayed or pressure-sprayed for the first two years of production. After this period, enterprises must apply electrostatic spraying technology.

Enterprises must be fully equipped with testing devices for paint quality indicators such as thickness, gloss, and adhesion.

Enterprises producing and assembling automobiles are permitted to cooperate and invest in advanced painting technology lines to serve the assembly of products meeting the technical requirements set forth in Clause 2 of this Article.

Article 6. Quality Inspection Assembly Line

The automobile assembly line must be equipped with specialized inspection devices for each assembly stage and devices to inspect the outgoing quality criteria as prescribed, including safety and emission levels. The inspection of outgoing quality criteria must be conducted on 100% of assembled vehicles. Measurement results must be processed and stored in the computer system.

Prior to leaving the factory, assembled automobiles must undergo testing on a test track according to the testing procedures of the production facility.

The inspection and calibration of measurement devices must be carried out in accordance with the current regulations of the State.

Article 7. Implementation of the Production Development Program

Based on the guidance of the Ministry of Industry regarding the implementation of the Program and solutions for developing automobile production until 2010, enterprises must develop and implement the Program and solutions for developing automobile production according to the project approved by competent authorities in line with the Strategy and Planning for Developing the Automotive Industry until 2010, with a vision to 2020, which has been approved by the Prime Minister.

Article 8. Organization and Management of Enterprises

In addition to the requirements for automobile manufacturing and assembly enterprises, they must also meet the following conditions:

1. Having a research and design department, technology, and product quality inspection; having sufficient manpower to absorb advanced technology transfer, improve products; having complete design, technology, and quality standards related to each type of product;

2. Having a development strategy for production and business, programs, and plans for developing resources, cooperation with experts, and training technical staff;

3. Within 24 months from the start date of automobile production and assembly, the enterprise must obtain certification for applying the ISO 9001:2000 quality management system or another advanced management system in production and business (TQM, QS 9000). At the latest within 36 months, the enterprise must obtain certification for applying the ISO 14001 environmental management system;

4. The enterprise must have a network of sales agents, warranty, maintenance, and post-sales services.

Chapter III

IMPLEMENTATION

Article 9. Implementation Steps

1. For new projects, the investor bases this standard's provisions to prepare the investment project dossier to submit to the competent authority for approval and implementation after approval.

2. The Provincial Industry Departments, centrally governed cities shall take the lead in coordinating with relevant provincial agencies to review the dossiers, conduct on-site inspections, and report to the People's Committee of the province for consideration and confirmation that the enterprise meets the production and assembly standards stipulated in this document before the factory officially commences operations.

3. Enterprises already permitted by competent authorities to invest in production and assembly of automobiles prior to the effective date of this document must complete additional investments by July 1, 2005, prepare dossiers for submission to the People's Committee of the province, centrally governed city for consideration and confirmation that they meet the enterprise production and assembly standards under these Regulations.

Article 10. Reporting System

1. Enterprises are responsible for reporting semi-annually and annually to the People's Committee of the province, centrally governed city about the results of investment, production, and business activities; they are liable under the law and subject to supervision and inspection by relevant state management agencies regarding export-import, production, assembly, and automobile business activities.

2. The Provincial Industry Departments are responsible for compiling the situation of investment, production, and business of automobile manufacturing and assembly enterprises within their jurisdiction, reporting to the Ministry of Industry before December 15 each year for monitoring, management, and compilation of reports to the Prime Minister.

Article 11. Organization of inspection for implementation of the regulations

The Department of Science and Technology shall take the lead and coordinate with relevant functional departments and related agencies to organize inspections for the implementation of this Regulation./.