Air pollution in the capital
In the last days of the year, Hanoi is often covered by a thick layer of dust. The AQI (air quality index) continuously exceeds the red, brown, and even purple thresholds - extremely dangerous levels for human health. This situation not only affects the health of millions of people but also negatively impacts the image of the capital in the eyes of tourists and investors.
But this is not a problem unique to Hanoi. Many major cities around the world have faced similar air crises, but with the right policies, they have turned things around. From Beijing (China), Oslo (Norway) to Berlin (Germany), electric vehicles are one of the keys to reducing emissions and regaining blue skies.
Current status of electric vehicle support policy in Vietnam
Currently, Vietnam has implemented a number of preferential policies to encourage people to switch to electric vehicles. Decree 10/2022, effective from March 2022, stipulates that battery-powered electric cars are exempt from registration fees for the first 3 years, and in the next 2 years, the first registration fee is 50% of that of gasoline and diesel cars with the same number of seats.
In addition, the National Assembly also agreed to reduce special consumption tax on electric cars, with a maximum reduction of up to 9% for electric cars with 9 seats or less, applicable from March 2022 to February 28, 2027.
However, according to Mr. Dao Cong Quyet - Head of the Public Relations Subcommittee, Vietnam Automobile Manufacturers Association (VAMA), to stimulate the electric vehicle consumption market, from now until 2030, Vietnam should continue to provide incentives on special consumption tax, registration fees and related taxes and fees for each electric vehicle line.
Lessons from the world on electric vehicle policy
In Norway, where electric vehicles account for more than 80% of the new car market, the government has exempted import duties, exempted parking fees, and even allowed EVs to use priority lanes. These policies not only reduce the cost of owning an electric vehicle, but also provide a strong incentive for people to switch.
Meanwhile, Germany also directly supports up to 2,000 EUR for each electric car buyer, and exempts road fees for the first 10 years of use. This policy has helped Germany quickly increase the rate of electric cars in circulation, while building a widespread network of charging stations to meet the growing demand.
In Asia, China stands out for its policies to encourage the development of electric vehicles through financial incentives and restrictions on gasoline-powered vehicles in the city center. In particular, Beijing converted all public buses to electric in just two years, transforming the capital from one of the most polluted places in the world to a livable city.
What policies does Vietnam need for electric vehicles?
Vietnam is currently aiming to achieve net zero emissions by 2050, but to achieve this goal, policies supporting electric vehicles need to be a top priority.
Dr. Pham Chi Lan - economic expert suggested: "The government needs to extend the policy of exempting registration fees for electric vehicles, providing financial support for people to switch to green means of transport and building a widespread charging station infrastructure. This is the way to create strong momentum for the development of the electric vehicle market".
Sharing the same view, Dr. Nguyen Si Dung suggested: “To help people switch to electric vehicles, the government needs to apply a series of policies such as subsidies when buying vehicles, free parking for electric vehicles and increased circulation fees for gasoline-powered vehicles. These policies have proven effective in many places around the world.”
According to experts, there are three main areas that Vietnam needs to focus on:
First, tax and fee exemptions for electric vehicles: The current policy of exempting registration fees for electric vehicles is about to expire in March 2025.Extending this policy is necessary to continue to encourage people to switch.In addition, the State can consider reducing special consumption tax or providing direct financial support to electric vehicle buyers, similar to what Germany and Norway have done.
Second, developing charging station infrastructure: One of the biggest barriers for electric vehicle users is the lack of charging stations.To solve this problem, the government needs to have policies to support land and preferential electricity prices for businesses installing charging stations.Areas such as public parking lots, shopping malls or densely populated residential areas should be prioritized for implementation.
Third, transforming public transport: Not only stopping at personal vehicles, Hanoi and other large cities need a roadmap to convert all buses and taxis to clean energy. Deploying electric buses and applying subsidies for people using green public transport will help reduce traffic pressure and air pollution.
