Fee exemption for electric vehicles

The Government will exempt the registration fee for electric vehicles for three years starting from March 1 to promote the consumption of electric cars in the local market and develop the environmentally-friendly vehicle segment.

Under Decree 10/2022/ND-CP on registration fees issued January 15, in the next two years, the registration fee for electric cars will be half that of fossil fuel-run vehicles with the same number of seats. Besides, fuel-powered cars with fewer than nine seats are subject to a registration fee of 10% of their value. The fee can be increased to suit the local conditions but the increase must not exceed 50% of the general rate.

The buyers of under-five-seat pickup trucks and vans with a load of less than 950 kilograms must pay a registration fee at 60% of that for under-nine-seat cars.

The decree also regulates that the registration fee for motorbikes is 2%. As for the purchase of motorbikes in cities and towns, the registration fee is 5%.

Meanwhile, the registration fee for locally-assembled or manufactured cars continues to be halved until the end of May.

The decree will take effect from March 1.

At present, VinFast is the only electric vehicle maker in Vietnam. The company launched the first model in December last year. It has proposed the Government apply tax incentives for electric vehicle production for five years. The Vietnam Automobile Manufacturers’ Association (VAMA) also proposed preferential taxes for electric vehicles in 2021-2030 to support electric vehicle manufacturers and buyers.