Reduce 50% of registration fees – a stimulus for domestic cars till the end of 2020

VCN – On the morning of June 28, the Prime Minister officially issued Decree No. 70/2020/ND-CP stipulating registration fees for domestically manufactured and assembled cars till the end of December 31, 2020

reduce 50 of registration fees a stimulus for domestic cars till the end of 2020 Ministry of Finance submits draft decree on registration fee for cars to the Government
reduce 50 of registration fees a stimulus for domestic cars till the end of 2020 When were manufactured and assembled automobiles domestically eligible for registration fee reductions?
reduce 50 of registration fees a stimulus for domestic cars till the end of 2020 50% reduction of registration fees to rev up domestic car sales
reduce 50 of registration fees a stimulus for domestic cars till the end of 2020
A 50% reduction in registration fees for domestically manufactured and assembled cars is a solution contributing to directly reducing costs for car ownership registration, increasing consumers’ accessibility to cars, thereby contributing to encouraging customers to return to buy cars after the pandemic. Photo: HP

Reduction till the end of 2020

Accordingly, from June 28 till the end of December 31, 2020, the registration fee for cars, trailers or semi-trailers pulled by cars and similar vehicles manufactured and assembled domestically is 50% of the rate specified in the Government's Decree No. 20/2019 / ND-CP amending and supplementing a number of articles of the Government's Decree No. 140/2016 / ND-CP on registration fees and current Resolutions of the People's Councils or the current Decisions of the People's Committees of provinces and centrally run cities on the registration fee rates in their localities.From 1 January 2021 onwards, registration fees will continue to comply with the provisions of Decree No. 20 and the current Resolutions of the People's Councils or the current Decisions of the People's Committeesof provinces and centrally run cities directly under the Central Government on the registration fee rates in their localities.

According to current regulations, the registration fee for cars, trailers or semi-trailers pulled by cars and similar vehicles is 2%.

Particularly, passenger cars with nine seats or less shall pay the first registration fee of 10% (People's Councils of provinces and centrally run cities shall decide the rate increase but the increase does not exceed 50% of the general prescribed rate). The rate from the second registration time onwards is 2%.

For pick-up trucks with transport volume of less than 1,500kg and five seats or less, trucks with a transport volume of less than 1,500kg shall pay the first registration fee equal to 60% of the first registration fee rate for passenger cars with nine seats or less. The rate from the second time onwards is 2%.

Purchasing power decreases, consumption is difficult

According to statistics from the Ministry of Finance, the revenue from registration fees for cars accounts for a large proportion of the total registration fee revenue and increases year by year. Specifically, in 2017 it accounted for 69%; 2018 69.7%; and 2019 74.6%. The revenue from registration fees for domestically manufactured and assembled cars is about VND16,000 billion per year.

However, from December 2019, the Covid-19 pandemic broke out in China and quickly spread to countries around the world. Currently, Vietnam has initially controlled the pandemic, but the disease situation in the world continues to be very complicated and shows no signs of slowing down.Many industries are seriously affected, including the domestic automobile assembly and manufacturing industry.

During the period of social distancing, most of the large car manufacturers and assemblers such as Thaco, Thanh Cong, VinFast, Toyota, Honda and Mercedes had to suspend production and assembly activities. The Covid-19 pandemic disrupted the supply chain and the demand for cars declined.

According to the Vietnam Automobile Manufacturers Association (VAMA), for the first four months of 2020, total sales decreased by 38.8% (only 60,825 cars) compared to the same period in 2019. Of which, domestically assembled cars decreased by 33% while imported cars decreased by 40% compared to the same period in 2019.

In addition, enterprises in the value chain such as transporters, suppliers and distributors also faced difficulties in supply chain, significantly reducing revenue.

Up to now, the Covid-19 pandemic in Vietnam is under control, automobile firms have restarted production and resumed supply chains. However, due to the serious impact of the Covid-19 pandemic, the reproduction and resumption of supply chains will face many difficulties, especially for domestic automobile manufacturing and assembly enterprises due to high inventories, so the production and assembly capacity is currently at a very low level.

reduce 50 of registration fees a stimulus for domestic cars till the end of 2020 When were manufactured and assembled automobiles domestically eligible for registration fee reductions?

VCN – The Government approved a reduction of half of registration fees when registering for automobiles manufactured ...

The main reason is that car consumption is facing many difficulties due to a sharp decrease in domestic purchasing power. Enterprises forecast that due to the impact of the Covid-19 pandemic, the car market is not only affected in 2020 but may continue in the following years.

Decree No. 70 is studied and developed by the Ministry of Finance in a streamlined way to ensure timely implementation of solutions set out in the Government's Resolution No. 84 / NQ-CP of May 29, 2020 on tasks and solutions to continue to remove difficulties for production and business, promote disbursement of public investment capital and ensure social order and safety amid the Covid-19 pandemic.

Before being submitted to the Government for promulgation, the draft decree has gone through public consultations from ministries, agencies, localities, the business community, organizations and individuals. At the same time, the draft was sent to the Ministry of Foreign Affairs and the Ministry of Industry and Trade to assess its compatibility with the relevant international treaties to which Vietnam is acceded.

The drafting agency has received 47 comments, of which 14 comments from ministries and agencies; 27 comments from local authorities; six comments from other associations, businesses and organizations.

Basically, all of them agreed with the need and contents of the draft decree (40 of 47comments totally agreed).

By Hong Van/ Huyen Trang

Related News

Spending over US$2 billion to import nearly 100,000 cars

Spending over US$2 billion to import nearly 100,000 cars

VCN - The number of imported CBU cars in the first half of August remained high, according to the latest preliminary statistics from the General Department of Customs.
Proposal to reduce registration fees to restore growth of domestic automobile industry

Proposal to reduce registration fees to restore growth of domestic automobile industry

VCN - Facing the significant decline in auto market sales in the last months of 2023 and early 2024, the Ministry of Finance is asking for opinions from ministries, central agencies and relevant agencies on continuing to reduce registration fee to restore growth of the domestic automobile industry amid many difficulties and challenges in the economy.
Automate the registration fee management process

Automate the registration fee management process

VCN - The General Department of Taxation is reviewing and completing the Draft of the procedure to replace the Registration Fee Management Process for other assets subject to registration fee (except houses and land).
Officially submit to the Government the Decree to reduce 50% of registration fees for domestically manufactured  and assembled cars

Officially submit to the Government the Decree to reduce 50% of registration fees for domestically manufactured and assembled cars

VCN - The Ministry of Finance has just submitted to the Government a project of a decree regulating the level of registration fee collection for domestically manufactured and assembled automobiles.

Latest News

Ensuring efficiency and transparency in use and management of houses and land at State enterprises

Ensuring efficiency and transparency in use and management of houses and land at State enterprises

VCN - According to the Ministry of Finance, the issuance of Directive on strengthening management, improving the efficiency of use and handling of houses and land at State-owned enterprises to ensure the effective management, use and handling of houses and land for the right purposes, and to avoid loss and waste.
Vietnam

Vietnam's stock market to develop strongly and sustainably

VCN - This was emphasized by Minister of Finance Nguyen Van Thang at the Conference to review the work of 2024 and deploy the work of 2025 of the State Securities Commission (SSC) held on the afternoon of December 18.
Tax sector achieves revenue target of about VND1.7 million billion

Tax sector achieves revenue target of about VND1.7 million billion

VCN – Motivated by the revenue collection by the end of December 2024, the General Department of Taxation has accomplished the revenue collection.
General inventory of public assets raises efficiency of use and management of country

General inventory of public assets raises efficiency of use and management of country's resources

VCN – The implementation of the General Inventory Project by the Ministry of Finance, ministries, central and local agencies has ensured progress according to Project 213 and the plan issued by the Ministry of Finance. This is the information provided by a representative of the Department of Public Asset Management (Ministry of Finance) at the press conference on the implementation of the General Inventory Project of public assets organized by the Ministry of Finance on the afternoon of December 18.

More News

Publicizes progress of public investment disbursement for important national projects

Publicizes progress of public investment disbursement for important national projects

VCN – Important national projects, inter-regional transport projects, riverbank and coastal erosion treatment projects all have disbursement rates lower than the estimated average disbursement rate of the whole country, the Ministry of Finance said.
Six SOEs to be transferred back to industry ministry

Six SOEs to be transferred back to industry ministry

Six State–owned enterprises (SOEs) with a total State stake of 800 trillion VND (31.5 billion USD) will be transferred back to the Ministry of Industry and Trade (MoIT) after six years under the management of the Commission for the Management of State Capital at Enterprises (CMSC).
PM urges stronger measures to manage interest rates

PM urges stronger measures to manage interest rates

Prime Minister Pham Minh Chinh has asked the State Bank of Vietnam (SBV) to proactively, flexibly, promptly, and effectively manage the monetary policy in combination with the expansionary fiscal policy and others.
Six SOEs to be transferred back to industry ministry

Six SOEs to be transferred back to industry ministry

Six State–owned enterprises (SOEs) with a total State stake of 800 trillion VND (31.5 billion USD) will be transferred back to the Ministry of Industry and Trade (MoIT) after six years under the management of the Commission for the Management of State Capital at Enterprises (CMSC).
Vietnamese products: Conquering foreign customers in supermarket systems

Vietnamese products: Conquering foreign customers in supermarket systems

VCN - According to the Ministry of Industry and Trade, the proportion of Vietnamese goods in distribution channels currently reaches more than 80% in supermarkets and 60% or more in traditional retail channels. For many retailers, Vietnamese goods have become a growth driver as they not only do business successfully in the domestic market but also export.
Answering many questions from businesses at dialogue conference on tax and customs policies

Answering many questions from businesses at dialogue conference on tax and customs policies

VCN - Many opinions and recommendations related to tax and customs issues were raised by the business community at the dialogue on tax and customs policies and administrative procedures in 2024, organized by the Ministry of Finance.Representatives of the Ministry of Finance, the General Department of Taxation, and the General Department of Customs provided specific responses, and affirmed that they will continue to research and advise on the assessment, review, and amendment and supplementation of appropriate regulations.
Enterprises face difficulties in tax refunds due to partners closing

Enterprises face difficulties in tax refunds due to partners closing

VCN - On December 13, at a dialogue conference on tax and customs policies and administrative procedures organized by the Ministry of Finance in coordination with the Vietnam Chamber of Commerce and Industry (VCCI), enterprises proposed solutions to many problems related to tax policies such as VAT refunds, tax declaration procedures, electronic invoices, etc.
Strengthen the management and use of electronic invoices for e-commerce

Strengthen the management and use of electronic invoices for e-commerce

VCN - Prime Minister Pham Minh Chinh requested ministries, branches and localities to strengthen the management and use of electronic invoices and improve the efficiency of tax collection for e-commerce.
Ministry of Finance proposes comprehensive amendments to the Personal Income Tax Law

Ministry of Finance proposes comprehensive amendments to the Personal Income Tax Law

VCN - The Ministry of Finance has just completed the proposal to draft the Personal Income Tax Law (PIT) and officially solicited public comments. By amending and supplementing nearly 90% of the total number of articles of the current PIT Law, the Ministry of Finance has submitted to the Government for permission to propose the draft PIT Law to replace the PIT policy system. The project is expected to be approved by the National Assembly in May 2026.
Read More

Your care

Latest Most read
Ensuring efficiency and transparency in use and management of houses and land at State enterprises

Ensuring efficiency and transparency in use and management of houses and land at State enterprises

VCN - According to the Ministry of Finance, the issuance of Directive on strengthening management, improving the efficiency of use and handling of houses and land at State-owned enterprises to ensure the effective management, use and handling of houses an
Vietnam

Vietnam's stock market to develop strongly and sustainably

VCN - This was emphasized by Minister of Finance Nguyen Van Thang at the Conference to review the work of 2024 and deploy the work of 2025 of the State Securities Commission (SSC) held on the afternoon of December 18.
Tax sector achieves revenue target of about VND1.7 million billion

Tax sector achieves revenue target of about VND1.7 million billion

VCN - With the determination to accomplish the revenue collection to create resources for economic development under the Prime Minister's direction, the entire Tax sector has made efforts to perform the revenue collection in the last days of 2024.
General inventory of public assets raises efficiency of use and management of country

General inventory of public assets raises efficiency of use and management of country's resources

VCN – The implementation of the General Inventory Project by the Ministry of Finance, ministries, central and local agencies has ensured progress according to Project 213 and the plan issued by the Ministry of Finance. This is the information provided by
Publicizes progress of public investment disbursement for important national projects

Publicizes progress of public investment disbursement for important national projects

VCN - The Ministry of Finance has issued Document No. 13213/BTC-DT to publicize the progress of public investment disbursement of key national projects.
Mobile Version