HCMC – The Ministry of Finance has proposed extending the registration fee exemption for electric vehicles (EV) for an additional two years, according to the ministry’s portal.
With Document No. 1790/BTC-CST, the ministry is gathering feedback from ministries and relevant agencies on amending Decree No. 10/2022/ND-CP. The ministry suggests maintaining the 0% registration fee from March 1, 2025 to February 28, 2027, extending the tax exemption beyond its current expiration in early 2025.
Vietnamese automaker VinFast recently requested an extension of the EV registration fee exemption, saying the incentive is needed to accelerate EV adoption. VinFast proposed extending the full exemption for three years, from March 1, 2025 to February 28, 2028, followed by a 50% reduction for an additional three years.
The Ministry of Finance estimates that the policy will reduce state budget revenue by VND4.8 trillion annually, an increase of VND2.4 trillion compared to the current lost revenue under the existing decree.
Since the exemption began in March 2022, the state budget has foregone VND8.4 trillion. The annual impact rose from VND381.7 billion in 2022 to VND3.2 trillion in 2023 and is expected to reach VND4.8 trillion in 2024. Despite the revenue loss, the measure is considered necessary to encourage EV adoption.
The registration of EVs has surged over the past three years. In 2022, 4,040 EVs were registered, averaging 404 per month. The number jumped to 29,281 in 2023, or 2,440 per month, a sixfold increase. In 2024, the figure is projected to reach 79,781, a 2.7-fold increase over 2023.
Vietnam’s EV penetration remains low compared to regional markets. Data from the International Organization of Motor Vehicle Manufacturers (OICA) shows that Vietnam’s EV ownership rate is one-tenth of Thailand’s and one-twentieth of Malaysia’s. Extending tax exemptions is expected to make EVs more affordable and accelerate adoption.
The policy aligns with the Government’s efforts to reduce fossil fuel dependence and cut emissions. It also aims to support local EV manufacturers, attract investment, and create jobs, benefiting supply chains and related industries. While the tax break results in short-term revenue losses, the ministry views it as a long-term investment in the EV sector.
