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Automobile association calls for reduction in vehicle registration fee over coronavirus impact
The Saigon Times
Wednesday,  Mar 25, 2020,12:41 (GMT+7)

Automobile association calls for reduction in vehicle registration fee over coronavirus impact

The Saigon Times

A car on display at an automobile exhibition in HCMC. The coronavirus outbreak is beginning to disrupt the supply chains of automobile spare parts, which could put automobile plants at risk of suspension – PHOTO: LE HOANG

HCMC – The Vietnam Automobile Manufacturers Association (VAMA) has called for the Government to halve vehicle registration fees as the novel coronavirus outbreak is putting automobile plants around the country at risk of suspension.

In a report to the Government, VAMA provided an overview of plant investment and expansion plans among its business members.

The association said that foreign technicians, experts and highly skilled workers who were dispatched to Vietnam have been unable to enter the country.

Also, machinery and equipment needed for plant expansions have not been imported into the country yet, hindering the progress of expansion projects.

Local plants have reportedly maintained their parts supplies and other materials. However, VAMA said that an increasing number of auto parts suppliers and auto manufacturers will suffer a direct impact from the Covid-19 pandemic.

The association explained that many governments around the world have resorted to locking down parts of their countries, or even the entire country, to contain the spread of the virus.

For this reason, auto manufacturers will have no choice but to adjust their production plans or suspend the operations of their plants until they are able to secure new supplies.

In an attempt to attract car buyers, VAMA proposed the Government reduce value added tax and registration fees by 50%. Also, it called for the rescheduling of value added and special consumption tax payments from March to September this year.

Workers at automobile plants could have their workload reduced, which would in turn lower their incomes, so VAMA urged the Government to cut their personal income tax.

In the latest development, U.S. automaker Ford Motor is temporarily suspending vehicle and engine production at its International Markets Group manufacturing sites in response to the growing impact of the coronavirus. Operations at its Vietnam assembly plant in the northern province of Hai Duong will be suspended on March 26.

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