The Ministry of Finance has just issued Official Letter No. 1790/BTC-CST asking for opinions from relevant ministries and branches on the proposal for opinions on the draft Decree amending and supplementing Decree No. 10/2022/ND-CP on registration fees for battery-powered electric cars. Accordingly, the Ministry recommends extending the registration fee exemption for battery-powered electric cars until February 28, 2027.
Explaining the necessity of this policy, the Ministry of Finance said that according to Data from the International Automobile Manufacturers' Organization (OICA), currently the ownership rate of battery-powered electric cars in Vietnam is still low and behind many countries in Southeast Asia. This rate is only 1/10 of Thailand and 1/20 of Malaysia.
While the demand for cars of the people is still high. The application of a 0% registration fee for battery-powered electric cars (instead of 10% - 12% for gasoline and diesel cars with the same seating) directly contributes to reducing costs when registering to own a car, increasing consumer access to automobile products and stimulating consumers to use this type of vehicle.
The Ministry of Finance said that after 3 years of applying the registration fee exemption policy under Decree No. 10/2022/ND-CP, the number of battery-powered electric cars has increased significantly over the years.
In 2022, the number of battery-powered electric cars registered for the first registration fee is 4,040 cars, an average of 404 cars/month.
By 2023, the number of battery-powered electric cars registered for the first registration fee will be 29,281 cars, an average of 2,440 cars/month, an increase of 6.04 times compared to 2022.
By 2024, the number of battery-powered electric cars registered for the first registration fee was 79,781, an average of 6,648 cars/month, an increase of 2.72 times compared to 2023.
Thus, after 3 years, battery-powered electric cars have gradually affirmed their solid position in the Vietnamese automobile market, thereby supporting distributors to boost consumption of environmentally friendly cars and contributing to helping businesses feel secure in continuing to invest in the production and assembly of battery-powered electric cars.
