Vietnamese people buying electric cars can get a subsidy of 1,000 USD thanks to this proposal

(Dan Tri) - If the proposal of the Ministry of Transport is approved, Vietnamese people will have to pay almost no registration fees when buying electric cars.

Recently, the Ministry of Transport (MOT) sent a document to 7 Ministries, the Vietnam Automobile Manufacturers Association (VAMA) and 5 domestic automobile manufacturing and assembly companies to get their second opinions on the policy to support the transition to electric cars. The 7 Ministries include: Ministry of Industry and Trade, Ministry of Finance, Ministry of Planning and Investment, Ministry of Construction, Ministry of Justice, Ministry of Natural Resources and Environment, Ministry of Science and Technology. The 5 automobile assembly companies include: VinFast, Toyota, Ford, Thaco and TC Motor. The MOT emphasized: "If the Ministry of Transport does not receive any comments, it is considered that the agency agrees with the draft report."

The Ministry of Transport requested ministries and branches to give their comments before August 28 to synthesize and report to the Prime Minister before August 30 (Photo: VinFast ).

The Ministry of Transport has stated that Vietnam's policy to encourage the use of electric cars only focuses on battery electric vehicles (BEVs) with incentives on special consumption tax and registration fees. The Ministry has proposed adding two more car lines to the support list, including: electric cars using fuel cells and solar cars. Most notably, there are incentives for electric car users. The Ministry of Transport has proposed to exempt or reduce registration fees and license plate registration fees for electric car buyers. In addition, there should be subsidies and access to credit for buyers to shift their consumption habits to electric cars. Another solution proposed by the management agency is to subsidize people with a support amount when buying electric cars, about 1,000 USD/car.

If the proposal is approved, electric car buyers will not only be exempted from 100% of registration fees but will also have their license plate registration fee reduced (VND 20 million) (Photo: Hyundai).

For domestically produced and assembled electric cars, the Ministry of Transport recommends reviewing and supplementing policies to prioritize the development of electric cars, especially public transport, in relevant laws. For investment projects in the production of electric cars and electric car batteries, the Ministry proposes to exempt and reduce import taxes on equipment, production lines, and import of assemblies and components necessary for assembly. The Ministry also proposes to have preferential mechanisms for access to finance and credit for enterprises producing and maintaining electric cars; at the same time, there should be tax incentives for imported electric cars. In addition, regulations should be developed and promulgated to raise emission standards; limit fuel consumption to limit vehicles using fossil fuels; and amend and supplement regulations on the treatment of discarded electric car batteries.

With tax incentives, imported electric vehicles promise to have more accessible prices (Photo: Hagerty).

Regarding the development of charging stations, the Ministry of Transport proposed investment incentives, interest rate support for loans to produce and import equipment and components necessary to build charging stations, charging posts, especially fast charging posts; preferential electricity prices, priority in providing electricity to serve the public charging station system; preferential land rent, access to funds, tax exemptions and reductions for organizations and individuals investing in electric charging stations. According to statistics from the Ministry of Transport, the number of electric cars manufactured, assembled and imported has increased 75 times in the past two years. In 2021, there were only 167 cars, but by the end of July 12, there were 12,585 electric cars, mainly cars and city buses.

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