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New policy in Vietnam: Auto registration fee to be reduced by half

18:04 | 29/06/2020

Locally manufactured cars in Vietnam would have their first-time registration fee cut by half until year's end, according to the new Decree 70/2020/ND-CP signed on June 28 by Prime Minister Nguyen Xuan Phuc. 

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new policy in vietnam auto registration fee to be reduced by half
A domestically-assembled Hyundai Grand i10 in a dealership in Thu Duc District, Ho Chi Minh City (Photo: VnExpress)

On June 28, Prime Minister Nguyen Xuan Phuc signed the Decree 70/2020/ND-CP, stipulating the first-time registration fee for domestically manufactured cars in Vietnam, according to Financial Magazine.

Accordingly, the rate of first-time registration fee for cars, trailers or semi-trailers pulled by cars and similar vehicles manufactured and assembled domestically is as follows:

new policy in vietnam auto registration fee to be reduced by half
Local cars will have registration fee cut by half (Photo: Financial Magazine)

From June 28, 2020 to the end of December 31, 2020, the registration fee rate is equal to 50% of that specified in the Government's Decree No. 20/2019/ND-CP of February 21, 2019, which amended and supplemented a number of articles of the Government's Decree No. 140/2016/ND-CP of October 10, 2016 on registration fees.

From January 1, 2021, the registration fee rate will continue to comply with the Government's Decree No. 20/2019/ND-CP of February 21, 2019, which amended and supplemented a number of articles of Decree No. 140/2016/ND-CP dated October 10, 2016 of the Government on registration fees.

The new Decree No. 70/2020/ND-CP takes effect from June 28, 2020 to the end of December 31, 2020.

new policy in vietnam auto registration fee to be reduced by half
This Decree aims at boosting car sales (Photo: Auto Pro)

The General Department of Taxation leaders said that the implementation of procedures to reduce 50% of this registration fee will be applied immediately. People will officially receive a 50% reduction of registration fee when registering for domestically manufactured and assembled cars, informed VGP.

Previously, automobile registration fees were set at 12 percent of the car price in localities such as Hanoi, Hai Phong City and Quang Ninh Province, 10 percent in Ho Chi Minh City and 11 percent in the central province of Ha Tinh.

This new Decree is considered part of an effort of Vietnamese Government to boost car sales, which plummeted in the first five months of this year due to the negative impact of the Covid-19 pandemic. The new policy is expected to stimulate people's demand and sales of domestically produced and assembled cars.

The Vietnam Automobile Manufacturers Association informed that during the period, auto sales dropped 34 percent year-on-year to 79,396 units. Major car manufacturers such as Toyota, Ford and Honda shut their factories and dealerships for two weeks in April due to the Covid-19 pandemic.

Last year, car sales had risen 11.7 percent against 2018 to 322,322 units, reported by VnExpress.

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