Policy of collecting old cars and exchanging them for new electric cars: global trend and lessons for Vietnam

In the context of a global focus on sustainable development and greenhouse gas emission reduction, policies encouraging trade-ins of old vehicles for new electric ones are becoming an effective solution to promote the green transition.

In the context of a global focus on sustainable development and reducing greenhouse gas emissions, policies encouraging trade-ins of old vehicles for new electric ones are becoming an effective solution to promote the green transition. (Image caption: Traffic congestion in Hanoi . Photo: Thanh Dong)

Shanghai Offers Generous Subsidies: From now until the end of December, Shanghai (China) is implementing a subsidy program offering over $2,000 to residents who trade in their old cars for new electric vehicles worth over $6,000. Additionally, a $1,500 subsidy is being applied to those who trade in their old cars for fuel-efficient models that meet National Emission Standard VI B. This policy not only stimulates electric vehicle consumption but also contributes to reducing environmental pollution and improving urban air quality. The Shanghai government is also offering parallel subsidies for both trade-in and new car purchases. For example, residents who trade in their old cars and meet certain conditions will receive 20,000 yuan (approximately $2,800) if they purchase a new electric vehicle, and 15,000 yuan (approximately $2,100) if they purchase a gasoline-powered car with an engine capacity under 2.0 liters. These measures have shown positive results, with a sharp increase in electric vehicle sales in Shanghai in recent months, while significantly reducing the number of older vehicles that do not meet emission standards. This not only helps improve the living environment but also lays the foundation for the sustainable development of the transportation industry. VinFast Pioneers Green Transition in Vietnam In Vietnam, VinFast has emerged as a pioneering enterprise in supporting people to switch from gasoline-powered to electric vehicles. From November 1st, 2024, VinFast, in collaboration with its partner FGF, launched the "Trade-in - Upgrade" program with many special offers. FGF supports customers in selling their used cars at market value, quickly and easily, while VinFast offers incentives of up to VND 120 million when customers purchase VF 7, VF 8, and VF 9 electric vehicles. For VinFast gasoline vehicles, customers can receive additional incentives ranging from VND 30 million to VND 120 million depending on the model and battery leasing or purchase option. For other internal combustion engine vehicles, incentives range from VND 15 million to VND 80 million. These policies significantly reduce conversion costs, creating a strong incentive for customers to participate in the green transition process. VinFast also applies a large incentive program with a conversion value of up to VND 463 million. With an expanding partner network and convenient procedures, VinFast and FGF are gradually breaking down psychological and financial barriers to encourage consumers to switch to electric vehicles. Looking from a global perspective to Vietnam, the future of electric vehicles: Policies encouraging trade-ins of old vehicles for new electric vehicles, such as those in Shanghai and VinFast, not only benefit the environment but also contribute to economic growth. Financial support for people trading in their old vehicles reduces the financial burden and increases purchasing power, stimulating the strong development of the electric vehicle market. However, for this policy to be effective in the long term, coordinated efforts between businesses, the government, and the community are necessary. In Vietnam, in addition to VinFast's incentive policies, the government needs to develop more comprehensive support mechanisms, such as exempting import taxes on electric vehicle components, developing charging station infrastructure, and strengthening public awareness campaigns about the benefits of electric vehicles. Overall, Shanghai and VinFast are exemplary models of how to apply trade-in incentives for electric vehicles. These steps not only open up a sustainable future for the transportation industry but also contribute to environmental protection and the goal of global green development. Source: https://laodong.vn/xa-hoi/chinh-sach-thu-xe-cu-doi-xe-dien-moi-xu-huong-toan-cau-va-bai-hoc-cho-viet-nam-1431001.ldo