The Ministry of Transport (MoT) submitted an incentive for EV producers and users
to the Government to promote the transition from fossil fuel cars and reduce GHG emissions toward net zero by 2050.
Accordingly, about 1,000 USD would be subsidized for each EV purchase, which aimed to change consumption behavior away from fossil fuel vehicles. Three types of EVs, including battery-powered EVs, fuel cell electric vehicles (FCEVs), and solar Evs, may receive incentives.
The MoT proposed to add EV manufacturing and assembly and battery production to the list of industries that receive special investment incentives, as well as an exemption and reduction of import tax on equipment, production lines, and import of complete components and components for the production and assembly of EVs and batteries.
For EV manufacturing, assembly, and maintenance companies, the ministry asked for a preferential mechanism that helps them access financial sources. A tax incentive mechanism for imported EVs is also needed.
The registration fee for EVs is exempt for the first five years from March 1, 2022. In the next five years, from March 1, 2027, this will be 50% of the fee for petrol and diesel cars with the same number of seats.
The MoT also proposed exemptions of import tax on components and equipment for electric charging stations, corporate income tax, land fee for five years, and a reduction of 50% for the next five years.
The number of EVs in Vietnam has increased rapidly in recent years. From 2018 to 2021, there were only 167 vehicles. By July 2023, the number increased to nearly 12,600 with the majority are passenger cars and city buses.
Source: Vietnam Initiative for Energy Transition (LinkedIn)
Photo: VLR
