An auto assembly line at Truong Hai Auto Corporation at Chu Lai Open Economic Zone in Quang Nam province. (Photo: VNA) Deputy PrimeMinister Le Minh Khai signed Decree No 103/2021/ND-CP of the Governmentstipulating the registration fee for cars, trailers, or semi-trailerspulled by cars and similar vehicles manufactured and assembled domestically.
The decreeclearly states that the registration fee rate for domestically manufactured andassembled cars will be 50 percent compared to the previous one, applicable fromDecember 1 to the end of May 31 next year.
Experts saidthat the Government's agreement to reduce the registration fee tax by 50 percentfor a period of six months for domestically-assembled cars would be agreat motivation to promote domestic automobile production and assembly.
The feereduction will also restrict imported cars and stimulate consumer shoppingneeds, which are impacted negatively by the COVID-19 pandemic.
Not only that,the policy is also expected to increase budget revenue from thisimportant industry.
As proof ofthis, when the Government reduced the registration fee by 50 percent in thesecond half of last year, the out-the-door price decreased from 14.95 millionVND (650 USD) to 298 million VND, helping to double the number of newlyregistered cars.
Therefore,although the registration fee revenue decreased by 7.3 trillion VND, the totalstate budget revenue nearly doubled to 14.1 trillion VND.
Economicexpert Nge Tri Long said that authorities who want to have a source of incomemust nurture and generate revenue because in the context of the COVID-19pandemic, as if prices and fees were high, people would not have money to buy.
Therefore, the50 percent reduction in car registration fees will stimulate consumer demand,thereby promoting production and circulation of goods, restoring growthmomentum and earning a return.
An expert inthe automobile industry said that the reduction was a good opportunity forconsumers to shop after the pandemic and an opportunity for businesses torelease inventory vehicles.
At the sametime, it also allows businesses to produce again after being affectedby the pandemic, which caused many factories to close because of socialdistancing.
However, someexperts said that the reduction value was only significant for customers who buy luxurycars that cost billions of VND.
Meanwhile, themajority of Vietnamese consumers buy cars priced around 500 million VND,so the reduction is only 30 million VND or less, equivalent to promotionsthat have been applied by companies previously. When thereduction was applied last year, many car manufacturers and dealers immediatelycut promotions applied to customers to offset business costs.
In the face ofnegative impacts from the pandemic, people are tightening their spending, andbeing supported with 50 percent of registration fees will have a great impacton purchasing power in the auto market.
It is forecastthat the auto market in the last two months of this year and the firstfour months of next year will grow strongly, focusing on domesticallyproduced and assembled vehicles.
The Việt NamAutomobile Manufacturers Association (VAMA) said that sales of the entiremarket of VAMA members reached 29,797 vehicles of all types in October, amonth-on-month increase of 120 percent.
In terms ofvehicle origin, while the sales of domestically-assembled cars reached 15,344,up 110 percent, sales of CBU cars were 14,453, up 132 percent over theprevious month.
In general,VAMA sales reached 218,734 vehicles of all kinds in the first 10 months of thisyear, up 3 percent over the same period last year.
In terms ofvehicle origin, while sales of domestically-assembled cars declined by 9 percent,imported CBU cars grew by 24 percent over the same period as last year./.
VNA
