Amendment of preferential import tariffs for materials in the automobile manufacturing industry in Vietnam

Amendment of preferential import tariffs for materials in the automobile manufacturing industry in Vietnam

In Decree 21/2025/ND-CP, the Government of Vietnam has amended the regulations on preferential import tax rates for raw materials, supplies, and components used in the manufacturing and processing (assembly) of industrial supporting products prioritized for development in the automobile manufacturing and assembly industry until December 31, 2027. To be specific:

A 0% preferential import tax rate is stipulated for raw materials, supplies, and components not yet produced domestically for the manufacturing and processing (assembly) of supporting products prioritized for development in the automobile manufacturing and assembly industry (hereinafter referred to as automotive supporting industrial products) until December 31, 2027.

- At the time of customs declaration registration, the customs declarant shall declare and calculate the tax on imported raw materials, supplies, and components according to the ordinary import tax rate, the preferential import tax rate, or the special preferential import tax rate as stipulated, without applying the 0% tax rate.

- The application of the 0% preferential import tax rate for raw materials, supplies, and components under the Automobile Supporting Industry Tax Incentive Program shall be implemented in accordance with Clauses 2, 3, 4, 5, 6, 7, 8 of Article 9 of Decree 26/2023/ND-CP.

Note: The preferential import tax rate for raw materials, supplies, and components used in the manufacturing and processing (assembly) of industrial supporting products prioritized for development in the automobile manufacturing and assembly industry as stipulated in Decree 21/2025/ND-CP is applicable until December 31, 2027.

Enterprises that have registered to participate in the Automobile Supporting Industry Tax Incentive Program prior to the effective date of Decree 21/2025/ND-CP do not need to re-register for the Automobile Supporting Industry Tax Incentive Program and will enjoy incentives as prescribed in Decree 21/2025/ND-CP.

Refer to more details at Decree 21/2025/ND-CP, effective from February 10, 2025.

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