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 theprovision of tax incentives to encourage the development and use of electricvehicles in Vietnam.

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

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

Data from the Vietnam Register shows that the number ofhybrid, plug-in hybrid and battery electric vehicles in Vietnam totalled 140 in2019 and 900 in 2020. The figure was 600 at the end of the first quarter ofthis year.

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

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

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

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

VNA