Implementing the policies of the Party and the State on the development of the supporting industry, the Government issued Decree No. 57/2020/ND-CP dated May 25, 2020, which added the Automobile Supporting Industry Tax Incentive Program (now Article 9 of Decree No. 26/2023/ND-CP dated May 31, 2023 of the Government). The Automobile Supporting Industry Tax Incentive Program is a preferential policy for the automobile manufacturing and assembly industry with the goal of producing from raw materials to final products. Up to now, the implementation period of the Automobile Support Industry Tax Incentive Program has nearly ended (end of 2024), while the Tax Incentive Program for automobile production and assembly (issued before this Program) has been extended once until the end of 2027. In the past, the Automobile Support Industry Tax Incentive Program has played an important role in promoting the sustainable and self-reliant development of the domestic automobile and auto support industry.
To continue supporting businesses as well as enhancing the role of the automobile support industry, the Ministry of Finance has coordinated with the Ministry of Industry and Trade to evaluate the Automobile Support Industry Tax Incentive Program in the past and draft a Decree amending and supplementing Article 9 of Decree No. 26, proposing to extend the application period of this preferential tax rate.
According to this proposal, the preferential import tax rate is 0% for raw materials, supplies, and components that cannot be produced domestically to produce, process (assemble) priority support products for the development of the automobile manufacturing and assembly industry (referred to as automobile support industry products) until December 31, 2027.
Recently, the Executive Committee of the Ha Tinh Provincial Party Committee met to highly agree on the investment policy of the Electric Car Manufacturing Factory Project with a total investment of 7,300 billion VND in Vung Ang Economic Zone proposed by Vinhomes Ha Tinh Industrial Park Investment Joint Stock Company. The investment and construction progress to put the factory into operation is June 2026. Phase 1 will produce with a capacity of 200,000 cars/year; Phase 2 from 2026 onwards will produce with a capacity of 400,000 cars/year.
According to the People's Committee of Ha Tinh province, when the project comes into operation, it will create stable jobs for thousands of local workers.
Previously, Thanh Cong Viet Hung Automobile Factory in Quang Ninh was ready for trial operation from the end of 2024 and commercial operation from the beginning of 2025. This project is built on an area of 36.5 hectares, located in the Thanh Cong Viet Hung Automobile and Supporting Industry Complex in Viet Hung Industrial Park. This is the first factory in Vietnam and Southeast Asia specializing in assembling and manufacturing cars, under the brand name Škoda Auto - the largest car brand in the Czech Republic, with a capacity of 120,000 cars/year. Up to now, the auxiliary areas such as test track, office building, LPG station, fuel station... have all been completed, ready for test runs from the end of 2024 and commercial operation from the beginning of 2025. Accordingly, the first two CKD car models (domestic assembled cars with 100% imported components) will be launched to the market, Kushaq and Slavia in 2025. In the next phase, the factory will expand to environmentally friendly electric vehicles, approaching new green car manufacturing technology, in line with the world's development trend.
