Vietnam will fine Volkswagen AG’s local distributor and an importer for showcasing a car with a navigation app reflecting Chinese territorial claims rejected by Hanoi. Bloomberg reported.
VW Vietnam Auto Co. faces a penalty of 20 million to 40 million dong ($860-$1,724), while World Auto Co. 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.
Southeast Asian countries have clashed with China over maritime claims in the region, where Beijing’s so-called nine-dash-line encompasses waters the U.S. has said could contain unexploited hydrocarbons worth $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 There were also calls for a DreamWorks boycott in the Philippines and the movie was withdrawn from a scheduled debut in Malaysia.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 news website on Oct. 29 cited the distributor’s general director as saying the vehicle was showcased due to carelessness on its part.