Revolutionizing the Automotive Industry: A Bold Move to Boost Domestic Automobile Sales

The Government Office has just announced the conclusion of the Standing Government at the meeting on receiving and explaining the opinions of the Government members on the draft decree stipulating the collection rates of registration fees for domestically produced and assembled cars.

Based on the report from the Ministry of Finance and the opinions at the meeting, the Standing Government agreed to implement a 50% reduction in registration fees for domestically produced and assembled cars within 3 months.

The Government Office is assigned to urgently seek opinions from Government members on the decree’s content.

Furthermore, the Standing Government assigned the Ministry of Industry and Trade to coordinate with relevant ministries and sectors to research and propose appropriate, feasible, and effective policies to encourage the production and use of electric vehicles in Vietnam.

The Ministry of Construction is assigned to coordinate with relevant ministries and sectors to review legal regulations and propose amendments and supplements to promptly remove difficulties and obstacles related to the installation of charging stations for means of transport at gas stations.

Previously, the policy of reducing the registration fee by 50% was implemented to support the domestic automobile industry in 2020, 2022, and 2023. Each time the registration fee for domestically produced and assembled cars was reduced for 6 months.

According to the Ministry of Finance, since the beginning of the year, automobile manufacturing and assembly enterprises have continued to face many difficulties from both domestic and foreign factors. Inflationary pressures, exchange rates, and high gold prices have affected consumers’ psychology, leading to a tendency to tighten spending on high-value items, including cars. This has caused a significant decline in car market sales in the first three months.