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

In the context of the global move towards sustainable development and greenhouse gas emission reduction, policies to encourage the exchange of old electric vehicles for new ones are becoming an effective solution to promote the green transition.

In the context of the global move towards sustainable development and greenhouse gas emission reduction, policies to encourage the exchange of old cars for new electric cars are becoming an effective solution to promote the green transition process. Image of traffic jam in Hanoi . Photo: Thanh Dong

Shanghai offers generous subsidies From now until the end of December, Shanghai (China) has implemented a subsidy program of more than 2,000 USD for people to exchange old cars for new electric cars worth over 6,000 USD. At the same time, a subsidy of 1,500 USD is also applied to people to exchange old cars for fuel-efficient cars that meet National VIB emission standards. This policy not only stimulates the consumption of electric cars but also contributes to reducing environmental pollution and improving urban air quality. The Shanghai government also applies parallel subsidies for the collection of old cars and the purchase of new cars. For example, people who discard old cars that meet certain conditions will receive 20,000 yuan (about 2,800 USD) if they buy new energy cars and 15,000 yuan (about 2,100 USD) if they buy gasoline cars with engine capacity under 2.0 liters. These measures have shown positive results, with the number of electric vehicles sold in Shanghai increasing sharply in recent months, while the number of old vehicles that do not meet emission standards has significantly reduced. This not only helps improve the living environment but also lays the foundation for sustainable development of the transport industry. VinFast Pioneers in supporting green conversion in Vietnam In Vietnam, VinFast has emerged as a pioneer in supporting people to switch from gasoline-powered vehicles to electric vehicles. Since November 1, 2024, VinFast has cooperated with partner FGF to launch the "Trade-in - Trade-in" program with many special incentives. FGF supports customers to sell used cars at the right market price, quickly and easily, while VinFast offers incentive packages of up to VND120 million when customers buy VF 7, VF 8 and VF 9 electric cars. With VinFast gasoline cars, customers can receive additional incentives from VND30 million to VND120 million depending on the car model and the form of battery rental or purchase. For other internal combustion engine cars, incentives range from VND15 million to VND80 million. These policies significantly reduce conversion costs, creating a great incentive for customers to participate in the green conversion process. VinFast also applies a large incentive program with a conversion value of up to VND463 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 cars. Looking from the world to Vietnam, the future of electric vehicles Policies to encourage trade-in of old electric vehicles like in Shanghai or VinFast not only bring environmental benefits but also contribute to promoting the economy. Financial support for people when exchanging old cars not only reduces the cost burden but also increases purchasing power, stimulating the strong development of the electric vehicle market. However, for this policy to be effective in the long term, there needs to be synchronous coordination between businesses, the government and the community. In Vietnam, in addition to VinFast implementing incentive policies, the Government also needs to build more comprehensive support mechanisms, such as exempting import tax on electric vehicle components, developing charging station infrastructure and increasing propaganda about the benefits of electric vehicles. In general, Shanghai and VinFast are typical models of how to apply policies to encourage trade-in of old electric vehicles. These steps not only open up a sustainable future for the transportation industry but also contribute to environmental protection, towards 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