return icon

Automobile industry stimulus policies proposed

The luxury tax rate on electric automobiles and the added value created in Vietnam in automobile manufacturing and assembling may be cut to zero percent to encourage the development of supporting industries.

The draft resolution on solutions to promote supporting industries being compiled by the Ministry of Industry and Trade (MOIT) comprises solutions to stimulate demand and reduce the prices of automobile products manufactured and assembled domestically.



MOIT says the automobile industry is facing big risks as the import tariff on CBU cars from ASEAN has been cut to zero percent since January 1, 2018 in accordance with the ASEAN Trade in Goods Agreement (ATIGA).

According to the ministry, some other regional countries, such as Thailand and Indonesia, cut the luxury tax rate on electric cars for three years.

Thanks to attractive tax and investment policies, the countries can attract foreign capital from many large automobile manufacturing groups in the world.

MOIT says the automobile industry is facing big risks as the import tariff on CBU cars from ASEAN has been cut to zero percent since January 1, 2018 in accordance with the ASEAN Trade in Goods Agreement (ATIGA).

Hyundai, for example, decided to pour $1.5 billion into Indonesia in 2020, while Toyota has expanded the production of electric cars in Thailand.

If Vietnam doesn’t set attractive preferences, it will continue missing the opportunity to attract large investment projects to the automobile industry. This will also affect the domestic enterprises such as Thaco, Thanh Cong and VinFast.

The draft resolution says the Ministry of Finance (MOF) needs to reduce the luxury tax on electric cars to zero percent, and the luxury tax exemption on the added value created in Vietnam for automobile manufacturing.

The duration for applying tax policies is five years.

MOIT also thinks that it is necessary amend the provisions in Decrees 149 and 157 which set tax rates on engines and gear boxes, valid until 2025, to zero percent, which is equal to the tax rate stipulated in ATIGA.

MOF has also proposed to refund the 10 percent VAT for equipment and machines imported to create fixed assets for enterprises in the supporting industries.

Meanwhile, some preferences may be given to projects on manufacturing automobiles with fewer than nine seats, which have the capacity of 50,000 cars a year or more, localization ratio of 40 percent, products for export for five years and plans for technology transfer.

The preferences may include land rent remission, and support in technology transfer costs and training.

It is also necessary to offer preferences to technology and training experts. 

Tran Thuy

Govt’s new decree removes barriers to automobile imports

Govt’s new decree removes barriers to automobile imports

Automobile importers in Vietnam will no longer have to obtain a Vehicle Type Approval (VTA) certificate from authorities in exporting countries, making it easier for them to import cars into the country.  

Vietnamese automobile makers ask for more support

Vietnamese automobile makers ask for more support

Among the incentives, the government is urged to lower the special consumption tax for locally made parts to help them reduce prices to compete with foreign manufacturers.


Ministry announces 218 firms as prestigious exporters of Vietnam

As many as 218 companies have won the “Prestigious Export Business” title for 2021, according to the list unveiled by the Ministry of Industry and Trade (MoIT) on December 5.

Vietnam, RoK agree to upgrade ties to comprehensive strategic partnership

Vietnam and the Republic of Korea (RoK) have agreed to upgrade their ties to a comprehensive strategic partnership, President Nguyen Xuan Phuc told the press following his talks with RoK President Yoon Suk-yeol in Seoul on December 5.

Tourists flock to Sa Pa to see clouds

The number of tourists to Sapa (Lao Cai Province) has rocketed in recent days to admire the amazing clouds.

Fried squid paste in Halong Bay

As one of the largest seafood regions in Vietnam, Quang Ninh has the tastiest seafood dishes that one cannot forget. Among them, fried squid paste in Halong Bay will leave a lasting impression on diners thanks to its unforgettable taste.

Experience Hanoi in its autumn glory

Thanks to its geographical location, the Vietnamese capital city of Hanoi witnesses contrastingly different weather conditions during the four seasons of the year.


HCYU’s 7th National Congress to be held next week

Korean President hosts State-level welcoming ceremony for Vietnamese counterpart

President Nguyen Xuan Phuc was welcomed in Seoul with a 21-gun salute which is given to a foreign head of state during a State-level visit to the Republic of Korea (RoK).


2022 ASEAN Postal Business Meeting to be held in Binh Dinh

Ministry considering EVN’s proposal for electricity price hikes

The Ministry of Industry and Trade is reviewing Vietnam Electricity's (EVN) proposal to increase electricity prices as rising input cost was weighing on the largest power company with record loss anticipated for this year.

Proper investment needed to develop night-time economy in Vietnam

The night-time economy of major cities in the country has remained underdeveloped due to a lack of proper investment and an absence of a legal framework and policies to promote it, authorities said.

Vietnam's rice exports likely to reach US$3.5 billion this year

Vietnam is anticipated to rake in roughly US$3.5 billion from exporting more than seven million tonnes of rice this year, according to industry insiders.

Local movie to be screened at Australian Vietnamese Film Festival

Vietnamese film "Cô gái từ quá khứ" (Girl from the past) will be introduced at the Australian Vietnamese Film Festival (AVFF) 2022 which is getting underway in Melbourne, Australia.

Auctions for car licence plates to be tested from July 2023

The starting price of a car licence plate put up for auction is VND40 million. The price may increase by increments of VND5 million.

Purpose-led business to drive superior performance

Working and developing a career at an enterprise with a mission towards sustainable development, employees can bring their goals to life.

Vietnam is well-positioned for green hydrogen production

Green hydrogen (GH2) industrial development is a direction for Viet Nam in the energy transition roadmap to achieve the goal of zero carbon emissions by 2050 but challenges remain, experts said.