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Proposal of reducing registration fee for domestically-produced cars rejected

The Ministry of Finance has rejected the Vietnam Automobile Manufacturers’ Association (VAMA) proposal to continue reducing the registration fees for new domestically-produced cars by 50 percent.
Proposal of reducing registration fee for domestically-produced cars rejected ảnh 1Illustrative image (Photo: VNA)
Hanoi (VNS/VNA) - The Ministry of Finance has rejected the Vietnam AutomobileManufacturers’ Association (VAMA) proposal to continue reducing theregistration fees for new domestically-produced cars by 50 percent.

Theministry said the proposal was inappropriate in the current context, askingVAMA’s members to follow the existing regulations about registration fees.

Thereduction was one among VAMA’s proposals to the Government aimed atremoving difficulties for the automobile market which was hit hard by theCOVID-19 pandemic.

Thereduction of 50 percent in the registration fee for domestically-produced carswas introduced in the Government’s Decree No 70/2020/NĐ-CP which took effectfrom June 28 to the end of 2020.

VAMAsaid that before the introduction of this policy, many car manufacturers suchas Honda, Ford, Toyota, Mercedes-Benz and TC Motor must temporarily haltedoperation due to high inventories because the COVID-19 pandemic affected theirsales.

VAMA’sstatistics showed that the number of cars manufactured and sold in the firsthalf of 2020 fell by nearly 40 percent against 2019.

However,the reduction of the registration fee coupled with other Government’s supporthelped many manufacturers overcome the difficulty and maintain their productionand business. The number of cars produced from July to December increased by 32percent against the same period of 2019 to reach 111,551 units while soldincreased by 13 percent to 189.451 units, the association’s statistics showed.

TheMinistry of Finance estimated that the reduction of the registration fee by 50percent in the second half of 2020 caused a loss of around 3.7 trillion VND (159.5million USD) to the State budget.

Theministry previously said that it would not consider prolonging the policyof reducing registration fee for domestically-produced cars.

Theministry said that it would update the production of domestic car manufacturesas well as assessing the impacts of the COVID-19 pandemic to introduce policiesto promote the development of the domestic automobile industry./.
VNA
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