The Vehicle Importers Vietnam Association (VIVA) has submitted a request to the Government seeking approval for a 50% reduction in registration fees for imported automobiles, matching the fee structure proposed for locally-made cars.

Vietnamese automobile prices are substantially higher than those in other regional countries because of high taxes and low output, according to the Ministry of Industry and Trade.

The nation has overtaken the Philippines to become the ASEAN region’s fourth largest automobile consumption market, behind only the Philippines, Thailand, Indonesia, and Malaysia, according to details given by the Ministry of Industry and Trade.

Associations have proposed the central Government halve the registration fee for locally assembled or manufactured cars during the first half of the year to boost market demand.

The Ministry of Finance (MOF) is working on an amendment to the Special Consumption Tax (luxury tax) Law to further slash tax rates on electric cars and hybrids.

Domestic auto distributors reported robust revenues and high profits in 2022 thanks to a significant increase in car sales.