Vietnam punishes Volkswagen for car with disputed China map

HANOI, Nov 5, 2019, Bloomberg. Vietnam will fine a Volkswagen local distributor and an importer for showcasing a car with a navigation app reflecting Chinese territorial claims rejected by Hanoi, South China Morning Post reported.

VW Vietnam Auto faces a penalty of 20 million to 40 million dong ($864-US$1,727), while World Auto will be fined 40 million-60 million dong and suspended from operating for six to nine months, the General Department of Vietnam Customs said in a statement on its website. The model, a Touareg CR745J, was displayed at a motor show in Ho Chi Minh City last month.

Vietnamese online newspaper VnExpress reported last month that authorities had initially considered destroying the car as a “deterrence”, but decided to merely confiscate it instead and issue fines to the all entities involved.

“Customs will remove and destroy the software which contains maps incorrectly depicting Vietnam’s sovereignty over the sea and islands. We will not destroy the vehicle to avoid waste,” Vietnam Customs was quoted as saying by the newspaper.

Southeast Asian countries have clashed with China over maritime claims in the region, where Beijing’s so-called nine-dash-line encompasses waters the US has said could contain unexploited hydrocarbons worth US$2.5 trillion. Vietnam and China fought a war along their land border in 1979.

Vietnam ordered cinemas to halt screenings of DreamWorks Animation’s Abominable last month because it showed the nine-dash-line on a map. There were also calls for a DreamWorks boycott in the Philippines and the movie was withdrawn from a scheduled debut in Malaysia. Another automobile importer was told last month to remove navigation apps that showed Chinese territorial claims.

A representative from VW Vietnam Auto declined to comment on the statement from the customs administration. VnExpress on October 29 cited the distributor’s general director as saying the vehicle was showcased because of carelessness on its part.