Electric vehicles to be subject to tax incentives in Vietnam

Vinfast's first electric vehicle (EV) model VF e34. (Photo: VinGroup)

Hanoi (VNA) – The Ministry of Trade and Industry (MoIT) has said it is cooperating with the Ministry of Finance to consider the provision of tax incentives to encourage the development and use of electric vehicles in Vietnam.

As electric vehicles remain unpopular among Vietnamese consumers, the two ministries are studying possible amendments to the Law on Special Consumption Tax in which preferential tax rates will be offered to electric vehicles, according to the MoIT.

The preferential tax rates would be applicable in at least five years, the ministry said.

Data from the Vietnam Register shows that the number of hybrid, plug-in hybrid and battery electric vehicles in Vietnam totalled 140 in 2019 and 900 in 2020. The figure was 600 at the end of the first quarter of this year.

All the current electric vehicles running in Vietnam are imported, with a majority of them being hybrid vehicles.

Vinfast is now the only carmaker in Vietnam producing and assembling electric vehicles. It started taking pre-orders for its first electric vehicle (EV) model VF e34 in March, and deliveries are scheduled to begin this November.

The launch of high-tech electric vehicles, including electric scooters, electric buses and personal electric cars, is part of the Vietnamese automaker's pre-defined roadmap since entering the automotive market three years ago.

It has obtained a licence to test self-driving EVs in California, the US./.

VNA