Vietnam telcos brace for handset import rules

Dylan Bushell-Embling
23 May 2011
00:00

New restrictions on the import of mobile phones into Vietnam have the potential to drive up procurement costs for operators and put a damper on local handset sales.

The government has ordered that from June 1, phones may only be imported by sea through one of three ports, VietnamNet Bridgereported.

The Ministry of Industry and Trade has said the order is aimed at cracking down on imports of counterfeit products, as well as on trade fraud.

But incumbent VinaPhone, which has been importing handsets by air, is bracing for the impact of the restrictions.

The company told the publication it expects the average cost of importing goods to rise to $4 million per week, from the current $1 million, as a result of the increased costs of shipping in inventory by sea.

The time it takes to receive an order is also likely to increase from about a week today to about one month when the restrictions take place, according to the operator.

Considering the pace of innovation in mobile phone development, this raises the prospect of products falling out of fashion before they arrive.

Viettel's import subsidiary is meanwhile anticipating the move to lead to a shortage of available handsets, and also expects the cost of importing to increase.

The new trade rules also do not effect products carried over the border by travellers, so acquiring phones from overseas could become more popular.

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