11 imported-car distributors propose 50% reduction in registration fees
The Vehicles Importers Vietnam Association (VIVA) has submitted a written proposal to the Ministry of Finance regarding a 50% cut in car registration fees.
According to the proposal, 11 car manufacturers including Audi, Aston Martin, Bentley, Maserati, Jaguar Land Rover, Jeep, Porsche, Subaru, Volkswagen, Volvo and Ferrari said that it was unfair for them if the policy on a 50% reduction in registration fees is only applied for locally assembled cars.
Due to the Covid-19 pandemic and prolonged social distancing, auto importers and distributors in Vietnam have had to suspend operations and have suffered a negative impact as they are completely dependent on import activities.
“Restrictions amid the Covid pandemic in Vietnam are being applied to all automobile businesses, so we suggest that the registration free reduction should be applied to both locally assembled and imported cars," the petition said.
The Vietnamese auto market has been strongly hit by the Covid-19 pandemic. Auto sales have declined for many months. That’s why many auto manufacturers and assemblers have asked the Government to re-apply a 50% cut on the car registration fee.
In August, the importer and distributor of Audi cars in Vietnam made a similar proposal. In May, the Vietnam Automobile Manufacturers’ Association (VAMA) also proposed reducing registration fees by 50% for newly registered cars.
Deputy Prime Minister Le Minh Khai has asked the Ministry of Finance to join agencies, associations and business communities to consider the proposal and have solutions to remove difficulties for the domestic automobile manufacturing and assembling industry.
In 2020, the Vietnamese Government cut registration fees by 50% for domestically assembled cars. This policy proved contributed significantly to stimulating market demand in the second half of the year.
According to data from the General Department of Taxation, this policy, which was effective by December 31, 2020, helped double the sales of domestically assembled cars in December 2020 compared to December 2019. Also, budget revenue from the sales of domestically manufactured and assembled cars increased by 47.1% year on year, equivalent to 11,200 billion VND.
The Vietnam Automobile Manufacturers’ Association (VAMA) said the fourth outbreak of the Covid-19 epidemic that began in late April 2021 has forced many automobile manufacturers to reduce capacity or even suspend production.
Car sales in Vietnam increased by 52 percent last month after five consecutive months of decline, showing positive signs for the car market at the end of the year.