Prime Minister Pham Minh Chinh has just signed Directive No. 12/CT-TTg dated April 21, 2024, on key tasks and solutions to promote socio-economic development. The document states:
The socio-economic situation of our country in the first 3 months of 2024 continued to recover positively, achieving many encouraging results. However, our country is facing a number of difficulties and challenges, especially external factors. To overcome the above shortcomings and limitations, the Prime Minister requests to continue promoting growth associated with macroeconomic stability, controlling inflation, and ensuring major economic balances.
The Prime Minister requested the Ministry of Finance to study and propose a reduction in the registration fee for domestically manufactured and assembled automobiles in May 2024.
One of the contents requested by the Prime Minister in Directive No. 12 is to assign the Ministry of Finance to urgently study and propose to the Government and Prime Minister in May 2024 the extension of the tax payment deadline, reduction of the registration fee for domestically produced and assembled automobiles, and reduction of land and water surface rental fees.
Previously, the Vietnamese automobile market has been promoted by the Government 3 times by a preferential policy of reducing the registration fee by 50% for domestically produced and assembled automobiles. The first time took effect for a period of 6 months in the second half of 2020; the second time was applied in the first 6 months of 2022, and the most recent was in the second half of 2023.
This preferential policy is considered a “lifeline” when the Vietnamese automobile market has not achieved positive signals throughout the first quarter of this year.
In all three applications, the above preferential policy created explosive results in terms of sales. It is noted that the number of domestically produced and assembled vehicles – the subjects receiving the incentives – has increased by an average of 200% in new vehicle registrations.
In particular, in terms of the total capacity of the automobile market in 2022, Vietnam achieved a consumption output of up to more than 500,000 vehicles – setting a record sales volume ever. Meanwhile, the first quarter of 2024 has ended, with the business results of most large and small automobile brands not meeting expectations. The government’s assistance at this time is the hope for the market to soon become vibrant again in the second half of 2024.
