The Government has just issued Decree No. 21/2025/ND-CP amending and supplementing Article 9 of Decree No. 26/2023/ND-CP on Export Tariff Schedule, Preferential Import Tariff Schedule, List of goods and absolute tax rates, mixed tax, and import tax outside tariff quotas.
The new regulation has provisions on preferential import tax rates for raw materials, supplies, and components for the production, processing (assembly) of priority supporting industrial products for the development of the automobile manufacturing and assembly industry until December 31, 2027.
The Decree states: At the time of registering the customs declaration, the customs declarant shall declare and calculate tax on imported raw materials, supplies and components according to the normal import tax rate or preferential import tax rate or special preferential import tax rate as prescribed, and the 0% tax rate shall not be applied.
Extending the tax incentive program for automobile supporting industries not only ensures consistency in incentive policies but also creates opportunities for the Vietnamese automobile industry to move closer to the goal of modernization and deep integration into the global value chain.
According to the Ministry of Finance, this policy not only supports domestic enterprises to expand automobile production and assembly but also reduces dependence on imported complete automobiles from ASEAN, with a 0% tax rate, contributing to creating a solid foundation for the domestic automobile industry to make a breakthrough, both in terms of production capacity and localization rate.
By the end of 2024, 38 enterprises were qualified to manufacture and assemble automobiles according to the provisions of Decree No. 116/2017. The effectiveness of the Automobile Supporting Industry Tax Incentive Program is clearly demonstrated through impressive figures. Enterprises participating in the program have produced more than 3.3 million products, with a total tax refund of up to VND 116.8 billion. On average, the tax refund is about VND 39 billion per year.
The Vietnam Association of Mechanical Industry (VAMI) highly appreciates the effectiveness of the preferential tax policy for the automobile supporting industry. According to VAMI, the 0% import tax on raw materials and components for supporting industry production has helped businesses stabilize production, improve competitiveness and invest heavily in modern technology.
The extension of the program until 2027 is not only a preferential policy, but also a strong commitment from the Government to accompany businesses, building a modern, self-reliant and sustainable automobile industry.
