Registration fee for domestically assembled cars reduced for 3 months

Domestically assembled cars and trailers or semi-trailers will have their registration fees reduced by 50% for 3 months, starting September 1.

According to the Decree issued by the Government on August 29, the first registration fee for domestically produced and assembled cars, trailers or semi-trailers and similar vehicles will be reduced by 50% from September 1 to November 30. From December 1, this fee will return to the old level.

This is the fourth consecutive year that domestically produced cars have enjoyed this policy. However, the implementation period this time is halved compared to previous adjustments (6 months). In fact, reducing registration fees does not help reduce car prices but will reduce the costs of getting the car on the road. Reducing this type of fee is also aimed at stimulating domestic car consumption in the context of many difficulties for businesses in this field.

According to data from the Vietnam Automobile Manufacturers Association (VAMA), in the first half of this year, total sales of domestically assembled and manufactured cars reached only 67,849 vehicles, down 15% compared to the same period last year. Since April, sales of domestically assembled and manufactured cars have been 3-14% lower than completely imported cars.

Cars manufactured and assembled at the factory in Quang Nam of Truong Hai Group. Photo: Duc Huy

Currently, the registration fee for cars is calculated based on a percentage of each type and each locality when registering. For example, the first fee for cars in Hanoi, Quang Ninh, Hai Phong is 12% of the car value; 10% in Ho Chi Minh City, 11% in Ha Tinh... For pickup trucks, the registration fee is 60% of the first fee for cars. From the second payment, the registration fee is 2% and is applied uniformly nationwide.

Previously, when developing this policy, the Ministry of Finance had proposed that the Government consider not implementing it. The reason was that Vietnam had recently received many requests for explanations when the policy discriminated between domestically produced and assembled vehicles and imported ones. In response, the Ministry proposed that the Government assign the Ministry of Industry and Trade to review and propose a solution in case Vietnam could be sued.

It is estimated that the budget will reduce revenue by about 2,600 billion VND when implementing this policy.

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