In a letter sent to Prime Minister Pham Minh Chinh, they also asked for an extension of the deadline to pay the special consumption tax.

The proposals were made amid bleak business conditions, which have resulted from difficult access to bank loans, high interest rates, market liquidity problems and rising auto inventory.

Automobile sales in January plunged by 60% over December last year and 54% against the year-ago period to just over 17,850, with around 9,230 cars assembled in Vietnam, showed data from the Vietnam Automobile Manufacturers’ Association.

Meanwhile, the Vietnam Association of Mechanical Industry attributed fewer new orders in the mechanical engineering and supporting industries to the steep fall in car sales, saying automakers may resort to mass layoffs if business conditions remain gloomy.

The associations said without the Government’s support, businesses’ efforts alone would be inadequate to revive the market. The market needs a stimulus package like the one launched in 2021-2022, they added.

In December 2021, the Government issued a resolution to reduce the car registration fee by 50%.

The fee cut came after the fourth wave of Covid-19 had inflicted heavy damage on almost all sectors of the economy, including the automotive industry, and helped auto sales bounce back.

Source: Saigon Times