HCMC – The Vietnam Chamber of Commerce and Industry (VCCI) has proposed extending the registration fee exemption for electric vehicles (EV) until February 28, 2027.
The current exemption for EVs was set to expire on February 28 this year.
VCCI said the policy would support EV adoption, cut emissions, and boost domestic production. It added that extending the exemption aligns with Vietnam’s transition to green energy.
The proposal aims to lower costs for consumers and encourage investment in local EV manufacturing.
Vietnam has already introduced tax incentives for EVs. Since March 1, 2022, the special consumption tax on electric vehicles has been reduced to 3%, 2%, and 1%, from previous respective rates of 15%, 10%, and 5%.
The Ministry of Finance is reviewing a revision to Decree 10/2022 that would maintain the 0% registration fee for EVs until 2027. The ministry estimates that extending the tax break would reduce state budget revenue by VND4.8 trillion annually.
The Ministry of Industry and Trade targets EVs, hybrids, and green-energy vehicles to make up 18-22% of total sales by 2030, or about 180,000-242,000 units. By 2045, the country aims to have 5-5.7 million automobiles, with 80-85% running on green energy.
Domestic vehicle production is expected to grow at 13-14% annually, reaching 4-4.6 million units by 2045. This expansion would meet 80-85% of domestic demand.
Vietnam is pushing for sustainable transportation while balancing the budget. The extension of tax breaks and other incentives is seen as the key to accelerating EV adoption and expanding the local industry.
Earlier, the Ministry of Finance and EV automaker Vinfast also suggested extending the registration fee exemption for EVs.
