Gov't reviews Vingroup's proposal on electric-car policy

Some Vietnamese enterprises have invested in electric-car manufacturing and charging stations, but an overall electric car strategy has yet to be developed by the government.

Gov't reviews Vingroup's proposal on electric-car policy

The Government Office recently released a notice about the Deputy Prime Minister Le Minh Khai’s decision on electric car policy in the next five years.

Khai asked the Ministry of Finance (MOF) to join forces with the Ministry of Industry and Trade (MOIT), Ministry of Transport (MOT) and Ministry of Natural Resources and the Environment (MONRE) to collect opinions on Vingroup’s proposal about the development of electric cars and report to the Government.

At a working session with Government leaders and ministries on May 19, Nguyen Viet Quang, CEO of Vingroup, proposed that the Government offer tax and fee incentives so that enterprises can have more favorable conditions in a fiercely competitive business field like automobiles.

In April 2021, VinFast announced that it had begun taking orders for its first electric car model VF e34. The first products will be delivered to clients by November 2021.

VinFast said it is cooperating with Taiwanese ProLogium Company to research and develop solid-state batteries for electric cars.

Vingroup has made significant investments in making VinFast electric cars on a large scale. It has also been developing charging stations and researching batteries.

However, while the enterprise is following a methodical investment strategy, there still has not been a national electric car manufacturing strategy.

At this time, electric cars can only enjoy incentives in car parts import tariff (zero percent) and in luxury tax (70 percent of the tax rate applied to cars using internal combustion engine). Meanwhile, other taxes and vehicle registration tax are the same.

At this time, electric cars can only enjoy incentives in car parts import tariff (zero percent) and in luxury tax (70 percent of the tax rate applied to cars using internal combustion engine). Meanwhile, other taxes and vehicle registration tax are the same.

In the past, Mitsubishi wanted to manufacture and assemble electric cars in Vietnam. However, it became discouraged while waiting for policies on electric car development.

Some foreign-invested automobile manufacturers have become impatient recently, having working sessions with ministries about the country's intention to develop an electric car industry.

The enterprises want to scale up investment in Vietnam and make electric cars in the future.

Lagging behind

 

As for countries with developed automobile industries, challenges will arise once the automobile industry shifts to making electric cars. The car parts used for internal combustion engine cars, such as the engine and gear box, will be gradually eliminated. This means that the manufacturing of these parts will decline, which may cause the loss of hundreds of thousand of jobs.

However, Vietnam won’t be affected because its automobile industry has not developed, and the industry doesn’t rely heavily on cars using internal combustion engines. In other words, it won’t be too costly for Vietnam to shift to making electric cars.

Moreover, Vietnam has great potential to develop an automobile industry thanks to its market and geographical position for global logistics activities. The country also has a skilled and industrious labor force.

Unlike Malaysia, Thailand and Indonesia, Vietnam applies right-side traffic law, which helps optimize production organization and cost.

All these factors are enough to turn Vietnam into an automobile industry headquarters in the future.

In Southeast Asia, Thailand and Indonesia are competing fiercely to lure investment in electrified automobile manufacturing, including HEV (hybrid electric vehicle), PHEV (plug-in hybrid electric vehicle), FCV (fuel cell) vehicle and EV (electric vehicle). They also want to become an electric automobile center of the region and the world.

This goal is being realized by the two countries through policies such as lower tax for lower CO2 emissions. In addition, they also offer incentives to investors and financial support to electric car buyers.

With these policies, both Thailand and Indonesia have attracted billions of dollars worth of capital from the world’s leading automobile manufacturers, including Toyota, Honda, Hyundai and LG, which have invested in electric car and battery manufacturing.

Meanwhile, Vietnam has no policy yet, despite increasing air pollution.

Nguyen Minh Dong, a respected automobile expert, said that in order to develop electric cars, it is necessary to offer more incentives and give support to manufacturers, including capital access for technology development, and infrastructure and supporting industry development. In addition, financial support should be offered to encourage people to shift to electric cars.

“In one word, it’s necessary to build an electric-car manufacturing development strategy with feasible policies,” Dong concluded. 

Tran Thuy

Supporting policies to develop electric cars needed: official

Supporting policies to develop electric cars needed: official

Vice Chairman of the National Traffic Safety Committee Khuat Viet Hung talks about proposals to the Government to promote green and environmentally friendly traffic in Vietnam.

Battery technology will determine race for electric cars

Battery technology will determine race for electric cars

Only when fast-charging batteries along with a nationwide system of charging stations will electric cars become popular in Vietnam.

 
 

Other News

.
Industrial development needs State’s long-term vision
Industrial development needs State’s long-term vision
FEATUREicon  10/07/2021 

To develop the processing and manufacturing industry, the State needs to have stronger policies that focus on domestic enterprises. To have strong policies, it needs strong resources.

Vietnam needs more private corporations
Vietnam needs more private corporations
FEATUREicon  10/07/2021 

After over 30 years of Doi Moi (reform), Vietnam has had large private groups operating in many industries with international stature. There are also Vietnamese USD billionaires, but only a handful.

Civil servants go to office to work, not to show off fashion
Civil servants go to office to work, not to show off fashion
FEATUREicon  10/07/2021 

Dinh Van Minh, Director of the Legal Department under the Government Inspectorate supports the Ministry of Home Affairs' decision on banning civil servants from going to the office in jeans, T-shirts without lapels, shorts and high-cut skirts.

Vietnam should not be slow in opening its door: economists
Vietnam should not be slow in opening its door: economists
FEATUREicon  10/07/2021 

Prime Minister Pham Minh Chinh has said that Vietnam should not adjust the development goals and agrees with the two GDP growth scenarios designed by the Ministry of Planning and Investment (MPI).

Lychees and the agricultural revolution in Vietnam
Lychees and the agricultural revolution in Vietnam
FEATUREicon  09/07/2021 

Farmers in the northern province of Hai Duong have earned revenue of VND1,600 billion in the lychee season this year, the highest ever. 

Minister, officers run against time to bring VND26 trillion support package to people
Minister, officers run against time to bring VND26 trillion support package to people
FEATUREicon  09/07/2021 

Minister of Labor, War Invalids and Social Affairs Dao Ngoc Dung said agencies and localities cannot be slow in disbursing the VND26 trillion support package.

Exports increase sharply, but concerns persist about trade deficit
Exports increase sharply, but concerns persist about trade deficit
FEATUREicon  09/07/2021 

Vietnam’s merchandise trade balance in the first half of the year resulted in a trade deficit. Last year, it had a trade surplus for the same period.

Zero Covid and the new quarantine strategy
Zero Covid and the new quarantine strategy
FEATUREicon  08/07/2021 

The Prime Minister’s approval to pilot home quarantine for F1 cases instead of concentrated quarantine is considered a turning point in Covid-19 prevention in Vietnam.

Unemployment in the time of Covid-19
Unemployment in the time of Covid-19
FEATUREicon  08/07/2021 

The unemployment statistics in Vietnam are always controversial.

Opening the huge market for e-sports
Opening the huge market for e-sports
FEATUREicon  08/07/2021 

Along with the development of the game market and digital entertainment platform, eSports has potential for development in a diverse and highly globalized ecosystem.

Vietnam takes a big step forward in international publications in social sciences
Vietnam takes a big step forward in international publications in social sciences
FEATUREicon  08/07/2021 

About 10 years ago, a mathematician said that Vietnam did not yet have social science study works. The comment seemed to be a bit harsh, but it did make sense, especially when it comes to international publications.

Vietnam needs to cure ‘stagnation disease’ to 'take off'
Vietnam needs to cure ‘stagnation disease’ to 'take off'
FEATUREicon  11/07/2021 

Prime Minister Pham Minh Chinh, after taking office, has been paying high attention to fostering the public apparatus’ proper implementation of their functions and tasks, especially the fulfillment of the great responsibilities assigned to them.

Vietnamese children need safer environment in cyberspace
Vietnamese children need safer environment in cyberspace
FEATUREicon  07/07/2021 

Children often spend a lot of time learning, playing and exploring on the internet. Besides the undeniable benefits, unseen threats are also part of cyberspace.

Vietnam’s retail market: global giants unexpectedly fall short
Vietnam’s retail market: global giants unexpectedly fall short
FEATUREicon  09/07/2021 

Vietnamese have turned the tables to become dominant in the retail market, while many foreign giants have had to leave.

Farm produce exports: specialties reach new markets
Farm produce exports: specialties reach new markets
FEATUREicon  08/07/2021 

Despite Covid-19, Vietnam’s farm produce exports still achieved impressive results, especially litchis.

Newspapers and social media: cooperation or confrontation?
Newspapers and social media: cooperation or confrontation?
FEATUREicon  07/07/2021 

VietNamNet spoke with Nguyen Ngoc Chu, a respected mathematician, who is a well-known Facebooker whose posts on his page attract at least 1,000 likes each.

Is Vietnam’s Covid-19 treatment Favipiravir drug effective?
Is Vietnam’s Covid-19 treatment Favipiravir drug effective?
FEATUREicon  07/07/2021 

Vietnam has never included any antiviral drugs in its Covid-19 treatment regimen because of unclear and unproved effectiveness of the drugs in clinical trial results.

What’s behind the high GDP growth rate?
What’s behind the high GDP growth rate?
FEATUREicon  07/07/2021 

The high GDP growth rate of 5.64 percent reported for H1, when a number of large cities and provinces were under social distancing, businesses had to close, and people lost their livelihoods, has puzzled many people.

Strengthening tools to protect children in cyberspace
Strengthening tools to protect children in cyberspace
FEATUREicon  05/07/2021 

The strong development of the Internet and social networks has made children become digital citizens early, which brings many benefits in the service of learning, entertainment, and enhanced social interaction.

CPI rises slowly as people run out of money
CPI rises slowly as people run out of money
FEATUREicon  06/07/2021 

The reported CPI only reflects 60-70 percent of the real situation, according to the former Chair of the Hanoi Supermarket Association Vu Vinh Phu.

 
 
 
Leave your comment on an article

OR QUICK LOGIN