Vietnam automakers seek cut in tax, fee for hybrid vehicles

By Trang Nguyen
Sun, August 21, 2022 | 8:16 pm GTM+7

The Vietnam Automobile Manufacturers’ Association (VAMA) has proposed that the government reduces the special consumption tax and registration fees for electric-gasoline hybrid vehicles.

Specifically, the tax and fee reduction has been proposed for hybrid electric vehicles (HEV) and plug-in hybrid electric vehicles (PHEV).

The association said such incentives would stimulate demand and attract consumers, encouraging automakers to make large and synchronous investments in developing charging station networks which are integrated with static traffic so that vehicles can be charged while parking and power generation systems ensure sufficient clean power supply.

Toyota's Camry 2022 hybrid version. Photo courtesy of the company.

Toyota's Camry 2022 hybrid version. Photo courtesy of the company.

The incentives can be gradually decreased in the next phase, and after 2050, there will be no need for separate support policies, with these vehicle lines already having a sustainable market share, VAMA said.

The association also proposed that the government quickly approves a new development strategy for the nation’s automobile industry in the “new situation” with suitable preferential policies.

The strategy should create a legal corridor to attract and encourage businesses to invest and develop based on new technologies.

According to analysts, Vietnam's transport infrastructure is feasible for the development of gasoline-electricity fueled vehicles. These can travel long distances like gasoline-fueled cars, while causing less environmental pollution and not requiring large investments in charging station infrastructure.

In the beginning of the year, the National Assembly decided to reduce the special consumption tax (SCT) for battery electric vehicles with less than nine seats from 15% to 3%. The new tax rate took effect this March and will be in force for five years. After March 2027, the SCT for battery electric vehicles will be 11%.

Meanwhile, hybrid vehicles like HEV and PHEV are not entitled to this preferential policy, which means they are still subject to 15% SCT and 100% registration fee.

In the popular car segment, Toyota has been a leader in bringing hybrids to the Vietnamese market. In August 2020, Toyota introduced imported Thai Corolla Cross model and later Corolla Altis and Camry.

Lexus, a subsidiary of Toyota, is a leading luxury car brand in the application of hybrid engines in Vietnam. In the Lexus product range in Vietnam, except for large-sized models like GX, LX and LM, models like IS, ES, NX, RX, LS all have hybrid variants.

Volvo is another rare car company that offers hybrid engine configurations in Vietnam. The Nordic car company currently has two products with hybrid engines, XC60 and XC90.

Comments (0)
  • Read More
Trungnam Group's shortcomings a cause of power purchase deadlock: industry ministry

Trungnam Group's shortcomings a cause of power purchase deadlock: industry ministry

The Trungnam Group's “shortcomings” have led to Vietnam Electricity (EVN) stopping purchase of 40% of its Trung Nam-Thuan Nam solar farm's capacity, says a deputy minister of industry and trade.

Energy - Sun, October 2, 2022 | 11:21 pm GTM+7

Vietnam banking system's bad debts hit 1.7%

Vietnam banking system's bad debts hit 1.7%

The Vietnamese banking system's bad debt ratio remained safe at 1.7% by the end of July, the central bank says in a report sent to the National Assembly’s Economic Committee.

Banking - Sun, October 2, 2022 | 3:51 pm GTM+7

Vietnam earns $40.8 bln from agriculture, fisheries, forestry exports

Vietnam earns $40.8 bln from agriculture, fisheries, forestry exports

Vietnam earned $40.8 billion from exporting agriculture, forestry and fisheries products in the first nine months of this year, up 15.2% year-on-year.

Economy - Sun, October 2, 2022 | 2:22 pm GTM+7

70% of land for Hanoi's Ring Road 4 project ready by next June

70% of land for Hanoi's Ring Road 4 project ready by next June

Hanoi, Bac Ninh and Hung Yen authorities have committed to handing over 1,341 hectares of land, or 70%, before June 30 next year so the Hanoi Ring Road 4 project can break ground as scheduled.

Infrastructure - Sun, October 2, 2022 | 2:00 pm GTM+7

Formosa thermal power plant explosion kills worker

Formosa thermal power plant explosion kills worker

Three workers were conducting maintenance work on gas pipelines at Formosa’s thermal power plant in Ha Tinh province when an explosion occurred, killing one and severely injuring the other two.

Society - Sun, October 2, 2022 | 11:51 am GTM+7

Rules need to make public bond issuance outpace private placement: experts

Rules need to make public bond issuance outpace private placement: experts

Vietnamese regulators need to fasten and simplify legal steps to encourage public bond issuances as enterprises usually opt for private placements, say experts.

Finance - Sun, October 2, 2022 | 10:36 am GTM+7

VN-Index plunges to 30-month low

VN-Index plunges to 30-month low

Vietnam’s benchmark VN-Index fell almost 12% in September compared with August, making it the exchange's biggest one-month drop in 30 months.

Finance - Sun, October 2, 2022 | 8:47 am GTM+7

Vietnam welcomes 1.87 mln foreigners, South Koreans in the lead

Vietnam welcomes 1.87 mln foreigners, South Koreans in the lead

Vietnam welcomed 1.87 million foreign visitors in the first nine months of the year, up 16.4 times year-on-year, with South Korea and the U.S. leading the pack.

Travel - Sat, October 1, 2022 | 8:26 pm GTM+7

US firm Molex expands Vietnam facility with solar panel installation

US firm Molex expands Vietnam facility with solar panel installation

Molex, a U.S. manufacturer of electronic, electrical and fiber optic connectivity systems, has expanded its manufacturing facility in Hanoi with solar panel installation.

Industries - Sat, October 1, 2022 | 6:46 pm GTM+7

EVN, Trungnam Group hold talks on solutions for solar power usage deadlock

EVN, Trungnam Group hold talks on solutions for solar power usage deadlock

State-owned Vietnam Electricity (EVN) has asked Trungnam Group to put the 172-megawatt capacity portion without a pricing mechanism of its 450 MW solar farm in Ninh Thuan into the competitive power generation market.

Energy - Sat, October 1, 2022 | 3:54 pm GTM+7

Danish firm Spectre opens third Vietnam factory in An Giang

Danish firm Spectre opens third Vietnam factory in An Giang

Spectre, a Danish maker of functional garments for outdoor sports brands, started operating its $17 million factory in An Giang province Friday, the company’s third in Vietnam.

Industries - Sat, October 1, 2022 | 3:06 pm GTM+7

Foreign firm accountant gets death sentence in $9.6 mln corruption case

Foreign firm accountant gets death sentence in $9.6 mln corruption case

A Dong Thap province court on Friday handed a death sentence to Nguyen Trung Thanh, chief accountant of Filipino-invested Pilmico Vietnam, on corruption charges.

Society - Sat, October 1, 2022 | 2:43 pm GTM+7

Vietnam’s nation brand valued at $431 billion

Vietnam’s nation brand valued at $431 billion

Vietnam has seen the third biggest brand value gain over the course of the pandemic in absolute terms, up $184 billion year-on-year to $431 billion in 2022, says London-based Brand Finance.

Economy - Sat, October 1, 2022 | 11:22 am GTM+7

Former deputy health minister gets year off jail term

Former deputy health minister gets year off jail term

An appeals court in Hanoi has reduced the jail term for former deputy minister of health Truong Quoc Cuong to three years, one year less than sentence awarded by the court of first instance in May.

Society - Sat, October 1, 2022 | 11:05 am GTM+7

Fever cools, townhouse, villa segment turns lethargic in major cities

Fever cools, townhouse, villa segment turns lethargic in major cities

Liquidity in the townhouse and villa segment, once feverishly high in both Hanoi and Ho Chi Minh City, has been drying up in recent months.

Real Estate - Sat, October 1, 2022 | 9:50 am GTM+7

AES gets ministerial nod for 2,250 MW LNG power project in Binh Thuan

AES gets ministerial nod for 2,250 MW LNG power project in Binh Thuan

American energy corporation AES has received in-principle approval from the Ministry of Industry and Trade for its VND50,432 billion ($2.11 billion) Son My 2 LNG-to-power project in the south-central province of Binh Thuan.

Energy - Fri, September 30, 2022 | 9:24 pm GTM+7