Description

The Ministry of Finance (MoF) proposed to reduce 50% of the registration fee for new electric vehicles compared to the charge for combustion-engine vehicles with the same number of seats. This incentive is expected to promote the domestic market for electric vehicles. This proposal belongs to the effort of the Government of Vietnam to reduce greenhouse emissions and traditional fossil fuels, according to MoF. If approved, the period of preferential treatment will be five years and not applied for used electric vehicles. This proposal is within the framework of the draft Decree on modification and supplement of the Decree 140/2016/NĐ-CP on the vehicle registration fee.

VinFast, the only Vietnamese automaker to date, can benefit from this decision. However, the company has proactively activated its incentive programs by offering financial benefits and technical assistance for customers who buy its electric vehicles.

Sources & further information: “Bộ Tài chính đề xuất giảm 50% lệ phí trước bạ: Cú hích cho ngành ô tô điện Việt” at https://vov.vn, “EV incentive to cost State budget VND8.6 trillion” at https://vietnamnews.vn, and “Giảm 50% lệ phí trước bạ ô tô điện, sắm xế hộp sẽ bớt đắt đỏ” at https://vietnamnet.vn, accessed on 28 September 2021.