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Sunday, July 21, 2024

Transport Ministry proposes incentives for EV makers and buyers

By N. Tan

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HCMC – The Ministry of Transport has presented a proposal containing a range of incentives for electric vehicle (EV) manufacturers and buyers.

In a recent report submitted to the Government, the ministry suggested exemptions and reductions of registration and license plate fees for EVs, as well as easy access to credit and direct price subsidy for buyers. The ministry also recommended issuiing a policy for public funding towards the acquisition and usage of such vehicles.

According to the proposal, residents will receive financial aid totaling US$1,000 for each electric car bought, encouraging them to shift from fossil fuel cars to EVs.

The ministry’s proposal expands the scope of incentives for development, encompassing battery electric cars, fuel cell electric cars, and solar cars, instead of solely battery electric cars, as is the current practice.

Moreover, the proposal advocates for special investment incentives for businesses involved in manufacturing, assembling, and producing batteries for electric cars. It also seeks exemption and reduction of import duties on equipment, lines and parts used in the manufacturing and assembling of EVs and battery packs.

Regarding EV manufacturers, assemblers, and maintenance service providers, the ministry recommended a credit mechanism to support their operations, with priority given to manufacturing technology transfer. The proposal also includes a tax incentive policy for imported electric cars.

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