A VinFast VF9 model vehicle. — Photo courtesy of the company
VinFast Manufacturing and Trading JSC has recently requested that the Government extend the exemption of registration fees for electric vehicles (EVs) for an additional three years, from March 1, 2025, to February 28, 2028.
Following this period, they suggest a 50 per cent reduction in registration fees for the subsequent three years, from March 1, 2028, to February 28, 2031.
Under Decree No. 10/2022/NĐ-CP dated January 15, 2022, electric cars have a zero per cent registration fee until February 28, 2025. After that, the registration fee for electric cars will be equal to 50 per cent of the fee for gasoline and diesel cars with the same number of seats.
The Ministry of Finance has proposed two options: under the first, EV registration fees will continue to be reduced by 50 per cent for two years, while under the second option, the zero per cent registration fee incentive will be extended beyond February 28.
The ministry has previously implemented measures to promote the use of environmentally friendly vehicles, first adopting the 50 per cent registration fee reduction for EVs in August 2021.
The preferential registration fee policy for battery-powered EVs in Vietnam, as prescribed in Decree 10, includes the following incentives over a five-year period:
From March 1, 2022, to February 28, 2025, battery electric vehicles (BEVs) are completely exempt from registration fees. For the next two years, from March 1, 2025, to February 28, 2027, BEVs receive a 50 per cent reduction in registration fees compared to conventional internal combustion engine (ICE) vehicles.
The ministry said that implementing this option will ensure policy stability and does not affect State budget revenue, especially local budgets.
In Notice No. 08/TB-VPCP dated January 8, 2025, Deputy Prime Minister Trần Hồng Hà emphasised the Government's commitment to promoting green transportation.
One of the proposed measures is to consider exempting 100 per cent of registration fees for EVs for a two-year period from March 1, 2025, to February 28, 2027. This proposal aims to further incentivise the adoption of EVs by making them more financially accessible to consumers.
According to the notice, six months before the end of the preferential registration fee period (by August 2026), an assessment and proposal for the next phase will be conducted. If the Government decides to extend or adjust incentives, it will be necessary to develop a new law amending and supplementing Decree 10.
The Ministry of Finance has indicated a clear preference for extending the full zero per cent registration fee incentive for electric cars beyond the current schedule.
When drafting Decree 10, the ministry established clear goals for electric cars, which include environmental protection, reducing emissions, pollution control, market stimulation and fiscal considerations. — VNS
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