Honda, Toyota urge Vietnam to provide tax, fee incentives for cars, hybrid EVs

Honda and Toyota, based in Vietnam’s northern province of Vinh Phuc, have urged Vinh Phuc authorities to propose relevant authorities provide tax and fee incentives for automobiles and hybrid electric vehicles (EV).

The two Japanese firms made the statements during on-site visits made by provincial leaders on Tuesday, prior to the Lunar New Year holiday (Tet).

Honda seeks excise tax incentives

Honda proposed the Vietnamese authorities give incentives related to excise taxes for hybrid EVs, grant the firm with business license for automobile and battery leasing activities, and allocate lands for tree planting to reduce carbon emission.

Honda also highlighted its achievements in 2024, including motorbike and automobile output going up 21% and 17% year-on-year. Its contribution to the state budget went up 14%.

The localization rates for production of motorbikes and automobiles were 98% and 27%, respectively.

In reply, Dang Xuan Phong, chief of Vinh Phuc's Party Committee, called on Honda to apply more innovations in its production and aim for a growth beyond 10% in 2025.

Toyota seeks automobile registration fee reduction

Toyota suggested the Vietnamese government halve the automobile registration fees. It also urged authorities to provide a suitable path for controlling fuel consumption and opening up the EV market.

In 2024, Toyota’s output was 27,900 units and sales were 68,100 units. It also gained $64 million from exporting automobile components. The localization rate in its Vinh Phuc factory was 43%, the company added.

In reply, Tran Duy Dong, Chairman of Vinh Phuc People’s Committee, said provincial authorities would make recommendations to the government and ministries per Toyota’s suggestions.

He urged Toyota to soon manufacture hybrid vehicles in Vinh Phuc, contributing to Vietnam’s target of carbon emission reduction.