The Vietnamese government decided to cut registration fees for locally manufactured and assembled cars by 50% until the end of this year acting on a proposal by the Ministry of Industry and Trade. The cut was proposed in order to support local businesses which were severely affected by the COVID 19 crisis and encourage new car buyers. Dealers estimated that the number of car buyers has increased by 20% due to this step.
All locally manufactured cars are currently enjoying a registration fee of 12% of the car value in Hanoi, and 10% nationwide. For the cheapest locally assembled car, Kia Morning priced at VND 299 million (USD 12,970), car buyers only need to pay VND 14.95 million (USD 648) to 17.94 million (USD 778), instead of the previous fee of VND 29.9 million (USD 1,297) to 35.88 million )(USD 1,556).
Although the luxury car production and assembly in the country with high prices will benefit the most in terms of amount, with Mercedes-Benz being the only luxury car brand assembled in the country, due to the high registration taxes previously paid versus the reduced ones now, dealers note that the small cars had the highest sales increase, increasing by 30 to 40% against the height of the pandemic.