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Thursday, July 25, 2024

Ministry proposes car registration fee cut until Jan 2025

The Saigon Times

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HCMC – The Ministry of Finance has proposed a 50% reduction in registration fees for domestically produced and assembled cars.

The ministry is seeking public feedback on a draft Government decree regarding the new fee structure. The proposal suggests that the first-time registration fee for these cars be set at half the rate specified in Decree No. 10/2022/ND-CP, effective from August 1, 2023 to January 31, 2025.

Starting February 1, 2025, the fees will revert to the levels outlined in Decree No. 10/2022/ND-CP and existing regulations.

This proposal follows previous reductions in registration fees from 2020 to 2023, where fees were cut by 50% three times for periods of six months each.

The ministry highlighted ongoing economic challenges, including inflation, exchange rate pressures, and high gold prices, which have impacted consumer spending. Domestic car production and sales have declined, while imports of completely built-up (CBU) cars have increased. Distributors have been offering significant discounts to boost sales of imported cars.

Vietnam has signed 17 free trade agreements, many of which include commitments to reduce import tariffs on CBUs to zero. This has increased competition for domestic car manufacturers.

The Ministry of Finance said that the proposed fee reduction will stimulate consumption, provide financial support to consumers and businesses, and help the domestic car manufacturing and assembly industry recover amidst ongoing economic woes.

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