return icon

Vietnam to raise tax on cars with high emissions

Experts have suggested imposing high taxes on vehicles and encouraging the use of electric cars.



At a seminar on urban transport’s impact on the environment held several days ago, Yann Maublanc from Espelia said that, after electric car usage kicked off, nitrogen oxide emissions in the populous Île-de-France decreased by 37 percent in 2005-2015, while emissions from transport decreased by 32 percent. The volume of fine dust, which caused 50,000 deaths a year, also fell by 36 percent.

The decreases were not attributed to the reduction in number of vehicles, but to the increase in the number of electric vehicles.

Vietnam is entering a motorization period. Experts say that if Vietnam cannot reduce the number of vehicles in circulation, it needs to restrict the use of old-technology vehicles and encourage vehicles using clean green technologies.

But the problem is that the vehicles using new technologies are pricey.

HEV (hybrid electric vehicles) are believed to be a solution to environmental problems in Vietnam. The School of Transportation Engineering under the Hanoi University of Science and Technology, after an experiment, concluded that HEV has outstanding advantages over traditional internal combustion vehicles in Vietnamese conditions, especially in terms of fuel savings.

The researchers used two Toyota Corola Cross 1.8L for the experiment, one with hybrid technology and the other with internal combustion engine technology.

On inner city roads, the hybrid only consumed 5.6 liters of petrol per 100 kilometers in rush hours, 4.8 liters in normal hours and 4.6 liters on highways.

The figures were 11.2 liters, 10.3 liters and 5.7 liters for an international combustion engine car.

Experts pointed out that in foreign countries, hybrids have become more popular than ever as they are green, clean and friendly to the environment. At first, people drove small cars, but there are now medium and large hybrids as well.

In Vietnam, hybrids do not enjoy any preferences compared with traditional internal combustion engine cars. Both types of cars bear the same import tariff, luxury tax and VAT.

Using high technologies, hybrids have high prices. In Vietnam, a hybrid is at least VND100 million more expensive that an internal combustion engine car. The modest income of Vietnamese explains why they are indifferent to hybrids.

Enterprises have been calling for reasonable policies to encourage people to use green cars. With preferential taxes and fees, hybrids would become cheaper and more people would use them. But policies have not been created.

That is why the number remains small. VAMA reported that 289 hybrids were imported in 2010, then the figure rose to 347 in 2011, but once again dropped to 131 in 2015. The imports continued to drop to to 84 in 2016 and 20 in 2017.

In late 2020, the sales of hybrids increased slightly with the hybrid version of Toyota Corolla Cross imported from Thailand. However, it is estimated that there are only 1,000 hybrids of different kinds, or just 0.3 percent of total cars.

Environmental quality

Some enterprises have tried to develop PHEV (plug in hybrid electric vehicle), but their efforts did not bring the desired effects.


It is impossible to shift to use EV immediately. Enterprises still need more time, more preferences and high financial capability to develop infrastructure and technology.


Mitsubishi Motors Vietnam introduced the Outlander PHEV in 2017, but there has been no information about sales.

The model uses two electric engines and a petrol one. Once fully charged, the car can run 60 kilometers without petrol. If it needs to go further, the petrol engine will be activated to charge the battery with electricity and support acceleration.

The Outlander PHEV consumes 1.9 liters per 100 kilometers, with CO2 volume of 44g/km, lower than the 173g/km of normal cars.

The product line has a preferential luxury tax, 70 percent of petrol engine cars, so the selling price is still high.

In order to develop these products, it is necessary to develop a network of electricity charging stations, like the one for EV (electric vehicle).

In Vietnam, the EV market has seen considerable progress compared with 2-3 years ago. VinFast has its first orders for its first EV model, and plans to delivery products in November. Some companies have imported EVs for domestic sale and their prices are nearly the same as petrol cars of the same segments.

In some cities, electricity charging stations have been built which allow drivers to charge quickly. A 25-minute charge is equal to 200 kilometers of travel.

But analysts still believe that it is impossible to shift to use EV immediately. Enterprises still need more time, more preferences and high financial capability to develop infrastructure and technology.

Frost and Sullivan believe that PHEV and EV will account for 30.4 percent of total cars in the world by 2030.

Experts believe that Vietnam needs to impose high taxes on vehicles that produce high emissions that pollute the environment. At the same time, it is necessary to encourage or even award clients using electrified vehicles. A good transport system and reduced pollution will attract investors and improve people’s lives. 

Tran Thuy

Vietnam's automobile manufacturers to develop solid-state batteries for electric cars

Vietnam's automobile manufacturers to develop solid-state batteries for electric cars

Making solid-state batteries is a prerequisite for the development of the electric vehicle (EV) market, helping create smart cars which can run thousands of kilometers after just minutes of battery charge.

New regulations to change Vietnam automobile industry in 2021

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.


Vietnam contributes to International Law Commission

Vietnamese Ambassador Nguyen Hong Thao has pledged to make more contributions to the progress and development of international law, for peace, friendship, cooperation and sustainable development worldwide.

Pencak silat fighter enjoys golden year

Pencak silat fighter Quang Thi Thu Nghia has had amazing year of competition when she has won titles from all competitions that she took part in.

Pop singer to compete at MTV Europe Music Awards

Pop singer Pham Dinh Thai Ngan from HCM City will represent Vietnam at the MTV Europe Music Awards (MTV EMA) 2022.

PM hosts national committee on digital transformation’s third session

Prime Minister Pham Minh Chinh chaired the third meeting of the National Committee on Digital Transformation on August 8 to assess digital transformation pace during the first half of 2022 and devise tasks for the time ahead.

Liem to face off against chess king Carlsen at FTX Crypto Cup

Vietnam’s leading chess player Le Quang Liem has revealed that he will take on Norwegian chess king Magnus Carlsen at the FTX Crypto Cup which is scheduled to take place in Miami, USA, from August 15 to August 21.

Vietnam ranks third overall at ASEAN Para Games 2022

Vietnamese athletes bagged seven more gold medals on August 5, the last competition day of the ASEAN Para Games 2022, retaining their third place in the medal tally.

Corporate bond market struggling with challenges

The size of the corporate bond market is estimated at some VND1,374 trillion, equivalent to 15% of GDP. The Government aims to raise this figure to 20% by 2025.

President requires greater efforts to promote value of Ngoc Linh ginseng

Ngoc Linh ginseng deserves the "National treasure" title, and it is necessary to strongly promote the role of this treasure in improving people's livelihoods, President Nguyen Xuan Phuc said .

EVFTA outpaces CPTPP in preference utilisation rate

The utilisation rate of tax incentives set out in the EU-Vietnam Free Trade Agreement (EVFTA) during Q1 soared by over 32%, representing a four-fold rise compared to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Refusal to issue visas to new VN passport causes problems for travel firms

The rejection of Vietnam’s new passport by some EU member countries is affecting HCM City tourism companies since their customers are unable to travel to those countries.

Vietnam set to scrap COVID quarantine for imported processed seafood

The Ministry of Agriculture and Rural Development has removed COVID-related quarantine requirements for frozen processed seafood products imported for the purpose of reprocessing for export.

HCM City seeks to boost technology transfer from universities

Huynh Kim Tuoc, managing director of Sai Gon Innovation Hub's (SiHub) Start-up Support Centre under the HCM City Department of Science and Technology, affirmed Vietnam holds tremendous potential for technology development

Vigilance urged against COVID-19 amid emergence of new epidemics

Prime Minister Pham Minh Chinh asked ministries, agencies and localities to maintain vigilance against COVID-19 while addressing a meeting in Hanoi on Saturday.

Vietnamese, British agencies coordinate in identifying fire victims

The Consular Department under the Ministry of Foreign Affairs and the Vietnamese Embassy in the UK will continue to coordinate with Vietnamese and British agencies to identify victims in a blaze in Greater Manchester on May 7.

Photo contest highlighting beauty of Vietnamese islands kicks off

Professional and amateur photographers across Vietnam are encouraged to compete in a photo contest highlighting the beauty of Vietnamese Hoang Sa and Truong Sa islands.