The Government has just issued Decree No. 109/2024/ND-CP stipulating the registration fee for automobiles, trailers or semi-trailers pulled by automobiles and vehicles similar to automobiles manufactured and assembled domestically.

According to this Decree, from September 1, 2024 to November 30, 2024, the registration fee collection rate is equal to 50% of the collection rate prescribed in Decree No. 10/2022/ND-CP of the Government regulating registration fees and current resolutions and decisions of the People's Council/People's Committee of provinces and centrally run cities on local registration fee collection rates and amendments, supplements and replacements (if any). From December 1, 2024 onwards, the registration fee collection rate will continue to be implemented as before.

W-domestic production car 1.jpeg
Domestically produced and assembled cars will have their registration fees reduced by 50% for three months. Photo: Hoang Hiep

Previously, the Government Office issued Notice No. 384/TB-VPCP of the Government Standing Committee at a meeting on receiving and explaining opinions of Government members on the draft Decree regulating the registration fee for domestically produced and assembled automobiles. The meeting was held on August 15 and chaired by Prime Minister Pham Minh Chinh.

After listening to the report of the Ministry of Finance, the speeches of the Deputy Prime Ministers and the delegates attending the meeting, the Government Standing Committee unanimously concluded to implement a 50% reduction in registration fees for domestically produced and assembled cars for a period of 3 months instead of a 6-month reduction as previously reported and requested for the Government's opinion.

Thus, in the next 3 months, the Vietnamese automobile market will be "heated up" thanks to the policy of reducing registration fees for domestically produced and assembled cars.

Previously, the Government had issued three resolutions on 50% preferential registration fees for domestically produced and assembled cars, which had a significant impact on the market.

For the first time, in the last 6 months of 2020, the number of domestically assembled cars sold increased to a record, reaching 398,177 cars, 2.03 times higher than in the first 6 months of 2020.

The second time applied for 6 months from December 1, 2021 to May 31, 2022, the number of domestic cars sold was 232,192 cars. On average, in the first 5 months of 2022, domestic car sales reached 33,690 cars/month, 1.5 times higher than the average number in the last 7 months of 2022.

The third time, applied in the last 6 months of 2023, domestic car sales reached 176,483 units, an increase of 1.6 times compared to the first 6 months of 2023.

Currently, the registration fee for new cars is 10-12% of the value, depending on the locality. Of which, Hanoi, Quang Ninh, Hai Phong, Lao Cai, Cao Bang, Lang Son, Son La and Can Tho are applying the rate of 12%; Ha Tinh province is applying the rate of 11%; Ho Chi Minh City and the remaining provinces and cities are applying the rate of 10%.

What is your perspective on the above issue? Please leave your comments in the comment section or share them with VietNamNet Newspaper via email: [email protected]. Appropriate content will be posted. Thank you!

The Government has agreed to reduce 50% of car registration fees, to be issued before August 18. The Government Standing Committee has just agreed to conclude a 50% reduction in registration fees for domestically produced and assembled cars for 3 months instead of 6 months as in the previous 3 incentive periods.