The continuation of the zero percent registration fee policy for battery-powered electric vehicles (EVs) is a strong incentive for consumers and businesses, reinforcing Vietnam’s commitment to green transformation.

Instead of enjoying a zero percent registration fee, battery-powered electric vehicles (EVs) will be required to pay 50% of the fee applicable to internal combustion engine cars with the same seating capacity.

Domestic car production in Vietnam is estimated at 388,500 units in 2024, marking a 27% rise from 2023, according to the General Statistics Office.

Car sales in August by members of the Vietnam Automobile Manufacturers’ Association (VAMA) fell by 13% from the previous month to 25,196 units, VAMA announced on September 13.

Pent-up demand is due to push up car sales in the final months of the year, according to experts.

The Ministry of Industry and Trade (MoIT) said that it is necessary to devise a 50% cut on auto registration fees and extend the payment of the excise tax on locally-assembled and manufactured cars to stimulate consumer demand and ease the burden on businesses.

A number of large manufacturers slashed car prices early this year, signaling fierce competition in the Vietnamese auto market.

A 50 percent reduction in registration fees for domestically-assembled cars is forming part of a push to help the auto market grow in the next six months.

Sales of automobiles by members of the Vietnam Automobile Manufacturers’ Association (VAMA) in October surged 22 percent against the previous month to reach 33,254 units, indicating consumption is recovering to pre-pandemic levels.

Automobile sales in August were down 14 percent against July, to 20,655 units, despite the introduction of a range of promotional programmes, according to the Vietnam Automobile Manufacturers’ Association (VAMA).

Several automakers are considering assembling their best-selling models in Vietnam due to the Government’s policy of zero import tariffs on components and a 50 percent reduction in registration fees.

Prime Minister Nguyen Xuan Phuc will cut 50 percent of registration fees for locally-manufactured and -assembled cars from now to the end of this year.

Da Nang is among 28 coastal cities and provinces with deep-water ports that favour the growth of a maritime economy.

Vietnam Automobile Manufacturers’ Association (VAMA) has proposed the Government reduce value-added tax (VAT) and registration fees for car customers by 50 percent, reports vietnamnet.vn.