Decision No. 648/1999/QĐ-BKHCNMT Issuing Regulations on Types of Assembly and Production of Two-Wheeled Motorcycles

Decision No. 648/1999/QĐ-BKHCNMT stipulates types of assembly and production of two-wheeled motorcycles applicable to enterprises with investment licenses for production and assembly. These regulations distinguish five types: CKD1, CKD2, IKD1, IKD2, IKD3 based on the ratio of domestically produced parts and imported parts.

Document No.648/1999/QĐ-BKHCNMT
Document typeDecision
Issuing authorityMinistry of Science and Technology
Signed byBùi Mạnh Hải — Thứ trưởng
Updated01/07/2026
SectorScience and Technology
FieldUncategorized
Issued date17/04/1999
Effective date02/05/1999
Expiry date
StatusIn effect
✦ Smart summary

Decision No. 648/1999/QĐ-BKHCNMT stipulates types of assembly and production of two-wheeled motorcycles applicable to enterprises with investment licenses for production and assembly. These regulations distinguish five types: CKD1, CKD2, IKD1, IKD2, IKD3 based on the ratio of domestically produced parts and imported parts.

Scope of application

Enterprises with investment licenses for production and assembly of two-wheeled motorcycles issued by competent state authorities.

Key points

  • Enterprises are permitted to assemble from new imported parts or parts produced in Vietnam according to five types: CKD1, CKD2, IKD1, IKD2, IKD3.
  • CKD1: All parts and sub-assemblies are imported and divided into six groups, with the engine, transmission, and generator in separate form.
  • CKD2: Unlike CKD1, all engine, transmission, and generator parts are in separate form. Domestic production value must be ≥5% of the total value of the complete vehicle if these components are in separate form, or ≥15% if imported as pre-assembled units.
  • IKD1: Some parts belonging to Group 6 and Group 3 are produced domestically, with a value of ≥10% (if the engine, transmission, and generator are in separate form) or ≥15% (if imported as pre-assembled units).
  • IKD2: Must include the frame and some parts belonging to Group 4 or Group 5 produced domestically. The total value of domestically produced parts must reach ≥30% of the total value of the complete vehicle.
  • IKD3: The total value of domestically produced parts must have a value of ≥60% of the total value of the complete vehicle, including the engine accounting for 30% of its value.

🌐 Social impact of this document

  • Positive impact includes encouraging enterprises to increase localization rates, reduce import costs, and strengthen the domestic motorcycle industry.
  • Negative impacts may include technical and management burdens on assembly facilities, as well as the need to invest in new technology chains.

❓ Frequently asked questions

What is CKD1?

CKD1 is the type of assembly of two-wheeled motorcycles from imported parts and sub-assemblies, where the engine, transmission, and generator are in separate form. (Article 3.1)

What is the minimum localization rate required for IKD2?

The total value of domestically produced parts must reach ≥30% of the total value of the complete vehicle. (Article 3.4)

How does CKD2 differ from CKD1?

CKD2 differs from CKD1 in that all engine, transmission, and generator parts are in separate form and only allowed to be imported if using domestically produced parts valued at ≥5% of the total value of the complete vehicle. (Article 3.2)

What is the minimum localization rate required for IKD1?

IKD1 requires domestically produced parts to have a value of ≥10% (if the engine, transmission, and generator are in separate form) or ≥15% (if imported as pre-assembled units). (Article 3.3)

To which types does this regulation apply?

This regulation applies to enterprises with investment licenses for production and assembly of two-wheeled motorcycles issued by competent state authorities. (Article 2)

Full text

MINISTRY OF SCIENCE, TECHNOLOGY AND ENVIRONMENT
TECHNOLOGY AND ENVIRONMENT

SOCIALIST REPUBLIC OF VIET NAM
Independence – Freedom – Happiness

Number: 648/1999/QĐ-BKHCNMT
Hanoi, April 17, 1999

 Pursuant to …;

Issuing Regulations on Types of Assembly and Production of Two-Wheeled Motorcycles

__________________________

MINISTER OF THE MINISTRY OF SCIENCE AND TECHNOLOGY AND ENVIRONMENT

BASED ON THE QUALITY OF GOODS ORDINANCE ON DECEMBER 27, 1990;

Pursuant to Decree No. 86/CP dated December 8, 1995 of the Government stipulating the responsibilities for state management of product quality;

Pursuant to Decree No. 22/CP dated May 22, 1993 of the Government on the tasks, powers, and organizational structure of the Ministry of Science, Technology and Environment;

Pursuant to the guidance of the Prime Minister in Circular No. 1440/KTTH dated November 7, 1998 on tax policies according to the degree of domestic production;

Pursuant to Decision No. 254/1998/QĐ-TTg dated December 30, 1998 of the Prime Minister on managing import and export of goods in 1999;

At the request of the Director General of the Standardization, Measurement, and Quality Control Department,

DECISION:

Article 1. Attached to this Decision is the "Regulations on Types of Assembly and Production of Two-Wheeled Motorcycles."

Article 2. These regulations apply to enterprises with investment licenses for the production and assembly of two-wheeled motorcycles issued by competent state authorities.

Article 3. THIS DECISION SHALL TAKE EFFECT 15 DAYS FROM THE DATE OF SIGNATURE.

Abolish Decisions No. 65/TĐC-QĐ dated March 16, 1995 and Decision No. 52/TĐC-QĐ dated March 27, 1998 of the General Bureau of Standards-Measurement-Quality Control.

DEPUTY MINISTER
DEPUTY MINISTER
(Signed)
Bui Manh Hai

REGULATIONS

Types of Assembly and Production of Two-Wheeled Motorcycles

(Issued together with Decision No.: 648/1999/QĐ-BKHCNMT dated April 17, 1999 of the Minister of Science, Technology and Environment)

1. This document stipulates types of assembly and production of two-wheeled motorcycles assembled from new parts and components imported and/or produced in Vietnam.

2. "Domestically produced parts and components" in this document refers to parts and components produced and assembled domestically to replace imports.

3. The following five types of assembly and production are specified:

3.1. CKD1: All parts and sub-assemblies imported are divided into six groups as follows (see Appendices 1 and 2):

3.1.1. Group 1 - Engine: Complete engine assembly, transmission, generator, not yet assembled onto the frame. Carburetor, air filter, muffler are separate.

3.1.2. Group 2 - Frame: Frame, front and rear shock absorbers, forks, and all parts in this group connected by bolts, nuts, screws are separate. Fully painted.

3.1.3. Group 3 - Chain drive and wheels: Rim, hub, spokes, tire, braking system, chain, sprocket are separate.

3.1.4. Group 4 - Control parts: Steering handle, brake lever, throttle, switch assembly, and all parts in this group connected by bolts, nuts, screws are separate.

3.1.5. Group 5 - Electrical system: Electrical system, headlight, taillight, signal lights are separate.

3.1.6. Group 6 - Bodywork and accessories: Entire bodywork and accessories are separate. Note: Appendices 1 and 2 attached to this document illustrate the level of separation of parts and sub-assemblies for type CKD1 for male and female motorcycles, without technical significance regarding structure. If the motorcycle structure has special parts different from these appendices, such parts will not be considered in the assessment of the assembly type.

3.2. CKD2: Different from type CKD1, all engine parts, transmission, and generator are separate. In cases where the engine, transmission, and generator are allowed to be imported in assembled form based on the license for production and assembly of two-wheeled motorcycles, domestic-produced parts must have a value of at least 5% of the total value of the complete vehicle.

3.3. IKD1: Different from type CKD2, some parts belonging to Groups 6 and 3 are produced domestically. Domestic-produced parts must have a value of at least 10% (if the engine, transmission, and generator are separate) or at least 15% (if the engine, transmission, and generator are allowed to be imported in assembled form) of the total value of the complete vehicle.

3.4. IKD2: Different from type CKD2, there must be additional frame parts and some parts belonging to Groups 4 or 5 produced domestically, while the engine, transmission, and generator must be separate. The total value of domestically produced parts must reach at least 30% of the total value of the complete vehicle.

3.5. IKD3: Different from type IKD2, the total value of domestically produced parts must be at least 60% of the total value of the complete vehicle, of which the value of engine parts must account for 30% of the engine's value.

4. The assembly facility for two-wheeled motorcycles must have assembly, processing, and testing equipment meeting the corresponding technical conditions for each type of assembly mentioned above.

5. The assembly facility must organize quality control of vehicles and issue test certificates meeting requirements for vehicles leaving the factory.

 


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