HCMC – The northern province of Vinh Phuc has proposed cutting the registration fee by half for locally-made cars as auto inventory has built up due to weak demand.
In a report sent to the Ministry of Industry and Trade, the Industry and Trade Department of Vinh Phuc said Toyota Motor Vietnam Company, the largest foreign-invested automaker based in the province, has cut its output by 37% against the first quarter last year, or over 2,800 units.
Its January-March sales fell by 24%, or 1,760 units. Its stockpile rose 347% at 1,931 units.
The department attributed the situation to the poor demand and the high registration fee that makes cars expensive.
Rising fuel and input prices, supply chain disruptions and recession fears have left negative impact on car manufacturers and assemblers in Vietnam.
The province also asked the Government to allow payment deadline extensions for special consumption tax on locally made and assembled autos.