Vietnam: Are electric cars still exempt from registration fees from March 1, 2025?

Vietnam: Are electric cars still exempt from registration fees from March 1, 2025?

On March 1, 2025, the Government of Vietnam issued Decree 51/2025/ND-CP amending and supplementing several articles of Decree 10/2022/ND-CP on registration fees.

This decree is effective from March 1, 2025.

>>> View the full text of Decree 51 of 2025 amending Decree 10 on registration fees...Download

According to Article 1 of Decree 51/2025/ND-CP...Download the regulations are as follows;

Amending and supplementing point c, clause 5, Article 8 of Decree 10/2022/ND-CP dated January 15, 2022 of the Government of Vietnam on registration fees, as follows:

“c) Battery-powered electric cars: From the effective date of this Decree until the end of February 28, 2027: the first registration fee will be 0%.”

Therefore, electric cars will continue to be exempt from the first registration fee from March 1, 2025, until the end of February 28, 2027.

Vietnam: Are electric cars still exempt from registration fees from March 1, 2025? (Image from the Internet)

Vietnam proposes policies on tax incentives for electric cars

On November 25, 2024, the Deputy Prime Minister of the Government of Vietnam issued Official Dispatch 8685/VPCP-CN in 2024 on implementing policies for developing green transportation.

After considering the report from the Ministry of Transport in Document 12093/BGTVT-KHCN&MT in 2024 on policies for developing green transportation, the Deputy Prime Minister of the Government of Vietnam provided the following directives:

Ministries, central agencies, and the People's Committees of provinces, centrally-run cities urgently study and implement the tasks associated with the roadmap outlined in the "Policy Proposal Report Supporting the Transition to Electric Cars" accompanying Document 12093/BGTVT-KHCN&MT dated November 7, 2024, of the Ministry of Transport (attached document), to promote green energy transition in the transport sector; noting:

- The Ministry of Transport is responsible for the overall policy to promote the transition, creating favorable conditions for bringing electric cars into circulation to replace fossil fuel vehicles; policies encouraging people and businesses to convert to electric cars; national technical standards and regulations for electric cars, components, and spare parts.

- The Ministry of Industry and Trade is responsible for developing the electric car manufacturing industry, the supporting industries for electric cars; developing the electric charging infrastructure system; incentives on electric prices at public charging stations; national technical standards for electric/hydrogen charging stations; policies ensuring electricity supply for charging stations.

- The Ministry of Finance is responsible for tax and fee incentives; policies on public asset procurement transitioning to electric cars; financial support policies, both direct and indirect, for users transitioning to electric cars.

- The Ministry of Planning and Investment is responsible for policies encouraging investment in electric car manufacturing, supporting technologies for electric car production, transitioning to electric cars for freight and passenger transport, developing electric/hydrogen charging infrastructure.

- The Ministry of Construction is responsible for regulations on locating electric charging stations in buildings, urban areas; construction permits for electric charging stations.

- The People's Committees of provinces, centrally-run cities are tasked with issuing policies to promote transitioning to electric cars at local levels. In the immediate phase, from now until 2030, they must issue plans for transitioning to electric buses; intra-provincial passenger cars according to the roadmap in Decision 876/QD-TTg in 2022 of the Prime Minister of Vietnam.

How to determine the base price for registration fee for electric cars in Vietnam?

Based on Clause 3, Article 7 of **** Decree 10/2022/ND-CP, the registration fee assessment price for electric cars is the price in the Decision on the Registration Fee Price Table issued by the Ministry of Finance...Download.

- The registration fee assessment price in the Price Table is determined according to the principle of conformity with the market transfer price at the time of establishing the Registration Fee Price Table.

The market transfer price of each type of car, motorcycle (for cars, motorcycles, it is according to the type of vehicle; for trucks, it is according to the country of production, brand, permissible load; for passenger cars, it is according to the country of production, brand, passenger capacity including the driver) is based on the data in Clause 2, Article 7 of **** Decree 10/2022/ND-CP.

- In case a new type of car arises, which at the time of filing the registration fee declaration is not yet in the Registration Fee Price Table, the tax authority will base on the data as stipulated in Clause 2, Article 7 of **** Decree 10/2022/ND-CP to determine the registration fee assessment price for each new type of car, motorcycle (for cars, motorcycles, it is according to the vehicle type; for trucks, it is according to the country of production, brand, permissible load; for passenger cars, it is according to the country of production, brand, passenger capacity including the driver).

- If a new type of car arises not in the Registration Fee Price Table, or cars, motorcycles already in the table but have a market transfer price increasing or decreasing by 5% or more compared to the price in the table, the Tax Department shall summarize and report to the Ministry of Finance before the 5th of the last month of the quarter.