Government reduces registration fees to boost car sales
The Vietnamese government has announced a temporary 50% reduction in registration fees for domestically produced and assembled cars.
This policy, detailed in Decree No. 109/2024/ND-CP, will be in effect from September 1 to November 30, 2024. After this period, standard registration fees will be reinstated.
This move aims to stimulate the domestic auto market, which has seen a significant drop in sales with 67,849 cars sold in the first half of 2024, marking a 15% decline compared to the same period last year.
The reduction is also intended to counter the trend of declining domestic auto sales compared to imported vehicles, which have been outperforming local models.
The policy is expected to reduce state revenue by approximately VND867 billion (US$34 million) per month. Current registration fees are 12% in Hanoi and Hai Phong, and 10% in Ho Chi Minh City, varying by locality.
This isn’t the first time the government has implemented such a measure. A similar fee reduction was applied in the last six months of the previous year.
