Vietnam to propose $1,000 for EV purchases to advance industry


The Ministry of Transport of Vietnam (MOT) proposed to provide a $1,000 incentive to people purchasing electric vehicles (EVs) in order to promote a shift in consumption patterns from gasoline and diesel vehicles to EVs.

Currently, the types of preferential development include battery-powered EVs, fuel cell EVs, and solar vehicles.

Regarding the preferential system for users, the MOT proposes to waive or subtract registration fees and license fees for EVs; promote credit access and directly subsidize buyers; give priority to the development of EVs participating in the transportation business and give priority to the conversion of EVs of transport companies, offering preferential loans and higher subsidies for electric buses.

Further reading: Indonesia’s EV revolution is on the rise with $20 billion market size

At the same time, the department also proposes to give investment incentives to projects that invest in the production and assembly of EVs and batteries; to exempt or reduce tariffs on imported equipment, production lines, imported finished products, and parts for the production and assembly of EVs and batteries.

In details, starting from March 1, 2022, registration fees will be waived for the first five years. For the next five years, from March 1, 2027, the first registration fee will be half that of petrol and diesel cars with the same number of seats. In addition, parts and equipment for the installation of electric vehicle charging stations will be exempted from import duties, and corporate income tax and land fees will be exempted for the first five years and will be reduced by half for the following five years.

The government has proposed policies to improve charging station standards and encourage investment in the development of charging stations, which are crucial for promoting the growth of the EV market and production industry. Currently, Vietnamese EV manufacturer VinFast has developed a charging station system and operates more than 150,000 electric motorcycle and electric vehicle charging stations across the country.

To achieve Vietnam’s goal of net zero by 2050, the Prime Minister has approved an action programme on green energy transformation to reduce carbon and methane emissions in the transport sector. According to the plan, Vietnam will promote the production, assembly, import and utilization of electric road vehicles and charging infrastructure between 2022 and 2030. All new buses on the road are expected to run on electricity and green energy from 2025.

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