According to Directive No. 20 issued on July 12, Prime Minister Pham Minh Chinh requested Hanoi to study and adjust registration fees, license plate fees and parking fees for gasoline and diesel vehicles circulating in the central area.
The implementation roadmap will begin in the third quarter of 2025 and will be adjusted gradually each year. This move is part of a group of solutions that go hand in hand with the goal of reducing environmental pollution and gradually tightening the use of fossil fuel vehicles in the inner city.
According to Decree 10/2022/ND-CP, the registration fee for cars with less than 9 seats is currently at 10%, however, localities are allowed to adjust it up to 50% higher than the general level.
Currently, Hanoi is applying 12% for cars and 7.2% for pickup trucks. With the new directive, this fee could increase to 15%, an increase of 3% compared to the current rate.
For example: A 5-seater car costs 650 million VND, the owner currently has to pay a registration fee of 78 million VND (12%). If it increases by 15%, this amount will be 97.5 million VND, an increase of nearly 20 million VND. The more expensive the car, the larger the difference in fees, causing the cost of ownership to increase significantly.
In addition to the registration fee, the license plate fee and vehicle registration fee are also expected to increase. Currently, Hanoi is collecting 20 million VND/license plate, the highest fee in the country. To limit gasoline and diesel vehicles, the authorities may raise this fee even higher.
Some countries like China have applied drastic measures: in addition to the lottery to issue license plates, the license plate fee in some places is up to hundreds of thousands of yuan, equivalent to hundreds of millions of Vietnamese Dong.
Hanoi is currently the country’s largest automobile market, with more than 50,000 new cars registered each year (according to the Vietnam Register). When fees increase across the board, sales of gasoline and diesel vehicles will certainly be affected, especially in the context of excess supply and declining purchasing power.
Meanwhile, many car manufacturers and dealers are implementing programs to support 50-100% of registration fees to stimulate demand. However, if the fee increases sharply, this support will no longer be enough to keep the selling price as attractive as it is now.
The fee increase is considered a stepping stone to encourage people to switch to electric vehicles - environmentally friendly vehicles that are being prioritized by the State. Currently, electric vehicles are exempt from registration fees for the first 3 years and enjoy many support policies, creating a significant competitive advantage over gasoline and diesel vehicles.
The new policy is expected to have a strong impact on people's shopping habits and promote the transition to green transportation in Hanoi. The specific decision on the increase will be announced in the near future.
Source: https://khoahocdoisong.vn/ly-do-oto-chay-xang-o-ha-noi-se-dat-do-hon-so-voi-hien-tai-post1556131.html
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