Despite these concerns, the ministry has prepared a draft decree for the government's decision, acknowledging the associated risks.

The Ministry of Finance recently submitted an assessment dossier for the draft decree regulating the registration fee rates for domestically produced and assembled cars to the Ministry of Justice.

The dossier includes feedback from various ministries, sectors, and localities. While most units agreed with the draft decree, the Ministry of Planning and Investment, the Ministry of Justice, and the Ministry of Industry and Trade expressed concerns about potential international violations.

Continuing to reduce the registration fee might breach international commitments, potentially leading to sanctions or retaliatory measures from countries importing Vietnamese goods. Therefore, it is crucial to develop contingency plans to address such risks.

In a dispatch dated April 26, 2024, and a report to the government on May 31, 2024, the Ministry of Finance detailed the implications of continuing the policy of a 50% reduction in registration fees for domestically produced and assembled cars. The ministry evaluated the impact of this reduction on international undertakings and proposed two options:

1. Do not reduce the registration fee for domestically produced and assembled cars.

2. Reduce the registration fee by 50% for six months for domestically produced and assembled cars.

After analyzing the pros and cons of each option, the Ministry of Finance recommended Option 1 to the government.

However, in Notice No. 264/TB-VPCP dated June 19, 2024, Deputy Prime Minister Le Minh Khai stated that most opinions at the meeting supported the proposal to reduce the registration fee for domestically produced and assembled cars as per Resolution No. 44/NQ-CP. He insisted that the decree be drafted following simplified procedures to ensure timely and effective policy implementation.

The Ministry of Finance was tasked to incorporate all relevant feedback from the meeting, finalize the dossier for the decree on the registration fee for domestically produced and assembled cars, and include comprehensive impact analysis (effects on state budget revenue, business operations, violation severity, and potential complaints and lawsuits), then submit the report to the government in June 2024.

In compliance with Deputy Prime Minister Le Minh Khai's directive, the Ministry of Finance drafted the decree as issued in Resolution No. 44/NQ-CP.

To address potential violations of international commitments, the Ministry of Finance has proposed that the Ministry of Industry and Trade take the lead in coordinating with relevant agencies to review and develop response plans if Vietnam faces legal actions for violating international commitments.

Luong Bang