Toyota seeks tax cuts on hybrid vehicles in Vietnam

Japanese automaker Toyota expects the Vietnamese government and parliament to reduce taxes and fees on its vehicles, particularly hybrid models, said CEO Keita Nakano.

Tax incentives for automobiles would make Toyota cars more affordable for Vietnamese consumers and encourage a shift toward hybrid vehicles for environmental protection, Nakano said during a Monday meeting with Dang Xuan Phong, Party chief of Vinh Phuc province, home to a Toyota Vietnam factory.

Toyota Vietnam is implementing measures to reduce production costs, lower vehicle prices, and enhance marketing efforts to expand its business in the country, Nakano added.

In response to Toyota’s proposal, Phong stated that provincial authorities would submit requests to the government and parliament for consideration.

He also urged the Japanese automaker to mull assembling and manufacturing high-end models in Vietnam while increasing local production capacity and reducing car import.

Last month, the Vietnamese subsidiaries of Honda and Toyota, both based in Vinh Phuc, called on the provincial government to propose tax and fee incentives for automobiles and hybrid electric vehicles (EVs) to relevant authorities.

In 2024, Toyota Vietnam contributed $884 million to the state budget, bringing its total contributions to $13.9 billion to date.