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

.
Ly Son Island is in 'hibernation' due to Covid-19
Ly Son Island is in 'hibernation' due to Covid-19
FEATUREicon  10/06/2021 

Boats are anchored ashore, buses are resting at parking yards, and hotels and restaurants are closing their doors. On Ly Son Island in Quang Ngai province, there are no tourists.

E-newspapers, ad agents urge amending of Advertisement Law
E-newspapers, ad agents urge amending of Advertisement Law
FEATUREicon  10/06/2021 

The Ministry of Culture, Sports and Tourism (MCST) will review the Advertisement Law and collect opinions to propose amendments that would allow press agencies to compete with cross-border platforms.

9x man sets up special symphony orchestra in Vietnam
9x man sets up special symphony orchestra in Vietnam
FEATUREicon  09/06/2021 

A special symphony orchestra in Vietnam has given disabled artists who only performed on the street the opportunity to stand on big stages like any other professional artist.

Billions of US dollars flow into Vietnam’s stock market despite Covid-19
Billions of US dollars flow into Vietnam’s stock market despite Covid-19
FEATUREicon  09/06/2021 

The stock market has been witnessing unprecedented cash inflow so far this year, even though the Covid-19 pandemic has become more complicated in Southeast Asia.

Da Nang sets example by stamping out recent Covid-19 outbreak
Da Nang sets example by stamping out recent Covid-19 outbreak
FEATUREicon  09/06/2021 

Da Nang city has gone 19 days with no Covid-19 community transmitted infections. The number of cases remained at 158, as of June 6.

What will VN streamers do after their popularity wanes?
What will VN streamers do after their popularity wanes?
FEATUREicon  09/06/2021 

Having become famous thanks to livestreams, some streamers have established their own companies and become entrepreneurs.

Business stories May 31–June 6
Business stories May 31–June 6
FEATUREicon  09/06/2021 

People who are worth VND500 trillion are listed among the top 30 richest persons in the US and the top 17 in China, according to Forbes. In Vietnam, such a person would be at the top.

Vietnam faces shortage of cold storage warehouses
Vietnam faces shortage of cold storage warehouses
FEATUREicon  09/06/2021 

The growing tendency of consumers shopping online globally has led to a sharp demand for cold storage warehouses, but investment in cold storage facilities remains modest.

Teachers faced strict requirements on certificates in last three months
Teachers faced strict requirements on certificates in last three months
FEATUREicon  08/06/2021 

In February, the Ministry of Education and Training (MOET) released several circulars on teacher appointments and rankings, and necessary certificates. 

FIFA World Cup: North Korea’s fairy tale and Vietnam’s dream
FIFA World Cup: North Korea’s fairy tale and Vietnam’s dream
FEATUREicon  08/06/2021 

The FIFA World Cup is always full of surprises, and the North Korean football squad’s fairy tale in the past is now the dream of the Vietnamese team.

Vietnam should not be criticized for slow pace of vaccinations: FPT official
Vietnam should not be criticized for slow pace of vaccinations: FPT official
FEATUREicon  08/06/2021 

Some people have criticized the Government for being slow in vaccinating its people. To date, only nearly 1 percent of population has been vaccinated, a figure which is even lower than Laos and Cambodia.

Illegal trading of personal data difficult to control
Illegal trading of personal data difficult to control
FEATUREicon  08/06/2021 

Minh Hoang, a businessman in Hanoi, is tired of spam calls and messages that come both day and night.

Village student enters top business school in Spain
Village student enters top business school in Spain
FEATUREicon  07/06/2021 

Getting out of a rut and choosing to follow his own way, Dinh Tien Dat wants to help next-generation students to pursue their own path.

VN auto manufacturers hit hard for last two years
VN auto manufacturers hit hard for last two years
FEATUREicon  07/06/2021 

The Vietnamese auto market prospered for a few years before being affected by the Covid-19 pandemic, but sales of locally assembled cars have fallen.

Vietnam: the world’s woodwork factory
Vietnam: the world’s woodwork factory
FEATUREicon  07/06/2021 

In recent decades, the Vietnamese wood industry, from a small craft industry, has grown rapidly to become a global processing industry.

How technology changes traditional books
How technology changes traditional books
FEATUREicon  06/06/2021 

Human knowledge has been digitized for cyberspace in the Internet era.

New policies needed to boost Vietnamese private sector
New policies needed to boost Vietnamese private sector
FEATUREicon  06/06/2021 

While foreign-invested enterprises (FIEs) have been growing and prospering, Vietnamese enterprises have been developing inadequately because they lack favorable conditions to thrive.

Ben Tre’s new revolution: awakening it's multi-billion dollar treasure
Ben Tre’s new revolution: awakening it's multi-billion dollar treasure
FEATUREicon  06/06/2021 

Ben Tre is the homeland of coconuts. It also has shrimp production and the largest seedling gardens in the country. With such treasures, the province could develop these into multi-billion dollar products.

Minister addresses measures for Covid-19 prevention and control in new circumstances
Minister addresses measures for Covid-19 prevention and control in new circumstances
FEATUREicon  06/06/2021 

It is necessary to have new approaches in fighting Covid-19 as per the PM’s direction – being more proactive, switching from defense to attack, applying technology, and applying rapid and proactive testing and vaccinations at lightning speed.

Roadmap needed to develop ‘clean’ auto industry
Roadmap needed to develop ‘clean’ auto industry
FEATUREicon  05/06/2021 

To develop electric vehicle industry, charging stations, batteries and reasonable prices are all needed. But an overall policy for these issues is not yet available in Vietnam, particularly battery waste disposal and treatment.

 
 
 
Leave your comment on an article

OR QUICK LOGIN