Prime Minister Nguyen Xuan Phuc has instructed the Ministry of Finance to look at taxes and fees related to automobile manufacturing and assembly in order to help the sector grow. (Photo: VNA)Hanoi (VNS/VNA) — Prime MinisterNguyen Xuan Phuchas instructed the Ministry of Finance (MoF) to look at taxes and feesrelated to automobile manufacturing and assembly in order to help the sectorgrow.
The PM also askedrelevant ministries and departments to create good conditions to help theindustry “take advantage of latecomers” by developing the localengineering industry and joining the global value chain.
Thatinvolved helping enterprises access information, advanced technology andthe application of new technologies such as robotics, 3D printing and selfautomation to improve productivity and competitiveness.
The Ministry ofScience and Technology has been tasked with stepping up research anddevelopment to manufacture high-tech products and to expandscientific and technological co-operation with strategic partners.
Regarding taxes andfees, the Government leader requested the MoF tosubmit a proposal with amended policies to help automobile manufacturersand assemblers increase the domestic value ratio, reduce costs, and increasecompetitiveness against imported Complete Built-Up products.
The PM alsoinstructed the MoF to offer import tariff incentives for parts used toassemble environmentally-friendly cars.
Earlier this year,the MoF announced a plan to add electric cars to the list of incentive taxbeneficiaries, saying it would encourage the development of the local carindustry.
Up to now, there areno Vietnamese businesses manufacturing or assembling environmentally-friendlyvehicles, which the ministry defines as electric, hybrid,biofuel or compressed natural gas powered.
There are 358businesses in the auto industry, but the country imports over 90 percent of itsauto parts. Most cars sold in the country are foreign brands imported orassembled locally.
Most recently, Hanoi was struck by unsafe levels of pollution, making it among the worst in theworld, with environmental authorities reporting that levels of PM 2.5 – tinyair particles – had reached a five-year high.
According to data, 70percent of the volume of gases emitted into the environment comes from motorvehicles. There are many outdated vehicles which emit a huge amount ofgas in Hanoi and Ho Chi Minh City./.
VNA
