Vietnamese people buying electric cars may receive a $1,000 subsidy thanks to this proposal.

(Dan Tri Newspaper) - If the Ministry of Transport 's proposal is approved, Vietnamese people buying electric cars will incur almost no registration fees.

Recently, the Ministry of Transport (MOT) sent a document to seven ministries, the Vietnam Automobile Manufacturers Association (VAMA), and five domestic automobile manufacturing and assembly companies to solicit feedback for the second time on policies supporting the transition to electric vehicles. The seven ministries are: the Ministry of Industry and Trade, the Ministry of Finance, the Ministry of Planning and Investment, the Ministry of Construction, the Ministry of Justice, the Ministry of Natural Resources and Environment, and the Ministry of Science and Technology. The five automobile assembly companies are: VinFast, Toyota, Ford, Thaco, and TC Motor. The MOT emphasized: "If the Ministry of Transport does not receive feedback, it will be considered that your agency agrees with the draft report."

The Ministry of Transport has requested feedback from ministries and agencies before August 28th so that it can be compiled and reported to the Prime Minister before August 30th (Photo: VinFast ).

The Ministry of Transport has stated that Vietnam's policy to encourage the use of electric vehicles currently focuses only on battery -electric vehicles (BEVs) with incentives regarding excise tax and registration fees. The Ministry proposes adding two more vehicle types to the support program: fuel cell electric vehicles and solar-powered vehicles. Most notably, incentives for electric vehicle users are needed. The Ministry of Transport proposes waiving or reducing registration fees and license plate fees for electric vehicle buyers. In addition, subsidies and access to credit are necessary to shift consumer habits towards electric vehicles. Another solution proposed by the authorities is to provide a subsidy of approximately US$1,000 per vehicle to individuals purchasing electric vehicles.

If the proposal is approved, electric car buyers will not only be exempt from 100% of the registration fee but will also save on the license plate registration fee (20 million VND) (Photo: Hyundai).

Regarding domestically produced and assembled electric vehicles, the Ministry of Transport recommends reviewing and supplementing policies prioritizing the development of electric vehicles, especially public transport vehicles, in relevant laws. For investment projects in electric vehicle and battery production, the Ministry proposes exempting or reducing import taxes on equipment, production lines, and necessary components for assembly. The Ministry also proposes preferential mechanisms for accessing finance and credit for businesses producing and maintaining electric vehicles; and simultaneously, tax incentives for imported electric vehicles. Furthermore, it suggests developing and enacting regulations to raise emission standards; limiting fuel consumption to reduce the use of fossil fuels; and amending and supplementing regulations on the disposal of discarded electric vehicle batteries.

With tax incentives, imported electric vehicles are expected to have more accessible prices (Photo: Hagerty).

Regarding the development of charging stations, the Ministry of Transport proposes investment incentives, interest rate subsidies for loans to produce and import necessary equipment and components for building charging stations and charging poles, especially fast charging poles; preferential electricity prices, priority in providing electricity to serve the public charging station system; preferential land lease fees, access to funds, and tax exemptions and reductions for organizations and individuals investing in electric charging stations. According to statistics from the Ministry of Transport, the number of electric vehicles produced, assembled, and imported has increased 75 times in the last two years. In 2021, there were only 167 vehicles, but as of July 12th, there had reached 12,585 electric vehicles, mainly passenger cars and city buses.

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