return icon Vietnamnet.vn

New regulations to change Vietnam automobile industry in 2021

Cars in Vietnam since 2021 are subject to new regulations such as registration fee, import tariff, and higher emission standards.

Manufacturing cars at Vinfast. (Photo: Pham Hung). 

 


A number of new laws and regulations that are set to take effect on January 1, 2021 and could change Vietnam’s automobile industry.

End of 50% reduction in registration fee for domestic cars

The Ministry of Finance (MoF) has not extended the policy of 50% registration fee cut for domestically-manufactured cars as embassies of some countries, including Thailand, Indonesia, and the European Chamber of Commerce (EuroCham), expressed concern that such a reduction shows discriminatory treatment against imported cars.

While the COVID-19 pandemic remains complicated globally, the MoF has continued extending the validity period for many existing supporting programs, including the ongoing cut of 50-100% in 29 fees and expenses, in various sectors from January 1, 2021 to June 30, 2021. However, the list did not include the registration fee cut that was expired on December 31, 2020.

This move is predicted to harm the domestic automobile market as car buyers have to pay the registration fee, which accounts for up to 12% of the car price. To boost consumption, a number of car manufacturers and dealers, including Vinfast, are providing their own support for customers in payment of registration fee.

Lower import duty for European cars

Since January 1, 2021, import tariffs for cars imported from the EU have been significantly reduced. Under the new tariff schedule stipulated in Decree No.111/2020/ND-CP that took effect in early 2021, import duty for cars from Europe would be reduced to 63.8% from 70.9%. 

Lowering import duty is Vietnam’s commitment under the EU – Vietnam Free Trade Agreement (EVFTA), which took effect last year.

Car expert Vinh Nam said that customers should not expect a sharp price decline in car imports from Europe, especially as the import duty cut is a gradual process and the tax rate of excise tax for car imports are based on the sale price, which includes profit of car dealers.

Applying simulation modeling to driving tests

Starting from January 1, 2021, all driving schools and testing centers in Vietnam are required to add simulation modeling into the driving test, so that the candidates should have experience on various driving circumstances and enhance their driving capabilities.

Higher emission standards for old vehicles

In 2021, all cars manufactured between 1999 to 2008 will be subject to emission standards at level 2, instead of level 1. Under current standards, petroleum engine automobiles are qualified for level 1 if they have carbon monoxide emissions (CO) of less than 4.5% and the hydrocarbon concentration (HC) of less at 1,200 part per million (ppm).

Level 1 is the lowest standard, while for cars to meet level 2 and 3, vehicles must have CO of less than 3.5 and 3.0% and HC of less than 800 and 600 ppm, respectively.

Cars with less than 10 seats not required to have fire extinguishers

Since January 10, 2021, passenger cars with less than 10 seats are not required to have a mini fire extinguisher. As such, owners of cars with four to nine seats only have to meet the overall requirements for fire prevention and safey standards.  

Previously, the Ministry of Public Security had made it mandatory for vehicles with four to nine seats to carry extinguishers, and those who fail to meet the requirement would be fined from VND300,000-500,000 (US$13-22). Hanoitimes

Ngoc Mai

After fast growth, domestically assembled cars face downtrend

After fast growth, domestically assembled cars face downtrend

The year 2020 witnessed many ups and downs of the car market. In H1, demand dropped dramatically because of Covid-19, but in H2, cars sold well thanks to the preferential vehicle registration tax.

Low-cost cars remain dream for Vietnamese

Low-cost cars remain dream for Vietnamese

Vietnam’s automobile industry had a prosperous year 2020 despite COvid-19. Manufacturers scaled up production, and new investors appeared.

MORE NEWS

Cafe helps with stray cat adoption in HCM City

Alex Ward and Geneva Marcelino are running cafes that work with local animal rescue shelters to help stray dogs and cats find their new homes.

Vietnam paying more attention to circuit production

Since electronic circuits are being applied in many fields from hi-tech agriculture, smart city infrastructure, to national defense, it is predicted that by 2024, the semiconductor industry in Vietnam will have exceeded the value of US$6.16 billion.

Hanoi looks to develop satellite cities

Hanoi is planning to develop satellite urban areas as part of an effort to widen local space and ease pressure from overcrowding in the inner city.

Film director Tran Van Thuy wins Grand Prize of Bui Xuan Phai Awards

Film director Tran Van Thuy won the Grand Prize of the 15th Bui Xuan Phai – For Love of Hanoi Awards during a ceremony held at the headquarters of the Vietnam News Agency (VNA) in Hanoi on October 6.

Vietnam sends 11 workers to WorldSkills Competition 2022

Eleven Vietnamese workers will participate in the WorldSkills Competition 2022 Special Edition which is being held in Europe and East Asia from September 30 to November 28, according to the Directorate of Vocational Education and Training.

VN underlines respect for territorial integrity in response to Ukraine-Russia conflict

Vietnam closely follows the developments surrounding the Ukraine-Russia conflict, spokesperson for the Ministry of Foreign Affairs Le Thi Thu Hang said during a regular press briefing in Hanoi on October 6.

VIETNAM NEWS HEADLINES OCTOBER 6

HCM City to be next destination of Italian Film Festival 2022

2023 AFF Club Championship schedule, structure announced

The 2023 ASEAN Football Federation (AFF) Club Championship will start on September 27 2023, and end on May 15, 2024, the AFF Competition Committee announced at an online meeting on Monday.

HCM City’s dengue fever deaths highest in decade

HCMC recorded some 25 deaths due to dengue by October 2, the highest in a decade, according to the HCMC Center for Disease Control.

Hospitality providers in Hanoi Old Quarter revive

Hospitality providers in Hanoi’s Old Quarter have been gradually recovering from the COVID-19 pandemic. Since March 15, most of them have so far been brought back to life.

After discovery of fake VietGAP-certification, 12 units under probe

After local media reported about vegetables with counterfeited VietGAP certificates, the Ministry of Agriculture and Rural Development (MARD) asked for a review of 12 certification units and threatened to strictly punish any violators.

Another three Vietnamese digital platforms qualify for being popularized

Vietnam is expected to maintain its seventh place in the number of new app downloads globally.

Foreign travel website suggests 10 best things when visiting Vietnam

Kayaking in the waters of picturesque Cat Ba island and taking a food tour to sample delicacies around Ho Chi Minh City are among the 10 best things to do in Vietnam, according to UK-based travel website Time Out.

Vietnam’s coconut kingdom protects organic coconut areas by biological methods

When the trend of consuming organic products is increasingly popular, the development of organic material sources has become an urgent requirement. Protecting these sources has become a great concern of producers in many countries around the world.
back_to_top