Vietnam seeks to quickly develop electric vehicle market

State-owned oil and gas company PetroVietnam is setting up a network of electric vehicle charging station across Vietnam

Vietnam will be introducing some administrative reforms in order to boost its domestic vehicle market, the country’s national radio broadcaster Voice of Vietnam reported.

The government intends to reduce the excise tax and registration fee for electric cars, with these two preferential policies anticipated to become an incentive to boost the local electric vehicle market, which is still in its infancy.

Under a government decree, battery-powered electric cars are to be exempt from the registration fee for three years, starting from March 1. The fee shall be paid at a rate equal to 50 per cent of the fee for petrol and diesel-fueled cars with the same number of seats over the next two years.

Taxes and fees to be reduced

The National Assembly also recently agreed to reduce the excise tax imposed on electric cars in an attempt to encourage greater investment in developing battery powered electric cars as a contribution to reducing environmental pollution from vehicle emissions.

The government previously introduced a number of tax reduction preferences for component assembling and production of electric cars, although these policies were not viewed as attractive enough for manufacturers. The two new preferential policies are now anticipated to bring about a range of benefits to the developing local electric vehicle market.

Following the “general trend” in the auto industry

It would also serve to help the domestic market catch up with the general trend of the auto industry, especially when the various battery-powered electric car industries of Vietnam and other ASEAN countries have almost identical starting points, the report said.

Experts further suggest that the government should focus more on developing infrastructure for electric cars such as car charging stations and incentivise the construction of battery factories to reduce vehicle production costs and with it sales prices.

VinFast, Kia, Mercedes-Benz to introduce new electric vehicles in Vietnam

This year, Vietnam’s domestic market will see the introduction of a number of electric vehicles, including models from domestic carmaker VinFast, as well as from Kia and Mercedes-Benz.

VinFast will market its VF8 and VF9 models, formerly named VF e35 and VF e36, while Thaco, the local assembler and distributor of Kia vehicles, will debut its Kia EV6 electric crossover in the second quarter 2022.

Mercedes-Benz said it would market the EQS, a large electric sedan, in the Vietnamese market. The model has already appeared in the firm’s product catalog in Vietnam. Along with EQS, Mercedes-Benz is also considering to market the EQB, an all-electric seven-seater SUV.



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[caption id="attachment_38117" align="alignleft" width="300"] State-owned oil and gas company PetroVietnam is setting up a network of electric vehicle charging station across Vietnam[/caption] Vietnam will be introducing some administrative reforms in order to boost its domestic vehicle market, the country’s national radio broadcaster Voice of Vietnam reported. The government intends to reduce the excise tax and registration fee for electric cars, with these two preferential policies anticipated to become an incentive to boost the local electric vehicle market, which is still in its infancy. Under a government decree, battery-powered electric cars are to be exempt from the registration fee for three...

State-owned oil and gas company PetroVietnam is setting up a network of electric vehicle charging station across Vietnam

Vietnam will be introducing some administrative reforms in order to boost its domestic vehicle market, the country’s national radio broadcaster Voice of Vietnam reported.

The government intends to reduce the excise tax and registration fee for electric cars, with these two preferential policies anticipated to become an incentive to boost the local electric vehicle market, which is still in its infancy.

Under a government decree, battery-powered electric cars are to be exempt from the registration fee for three years, starting from March 1. The fee shall be paid at a rate equal to 50 per cent of the fee for petrol and diesel-fueled cars with the same number of seats over the next two years.

Taxes and fees to be reduced

The National Assembly also recently agreed to reduce the excise tax imposed on electric cars in an attempt to encourage greater investment in developing battery powered electric cars as a contribution to reducing environmental pollution from vehicle emissions.

The government previously introduced a number of tax reduction preferences for component assembling and production of electric cars, although these policies were not viewed as attractive enough for manufacturers. The two new preferential policies are now anticipated to bring about a range of benefits to the developing local electric vehicle market.

Following the “general trend” in the auto industry

It would also serve to help the domestic market catch up with the general trend of the auto industry, especially when the various battery-powered electric car industries of Vietnam and other ASEAN countries have almost identical starting points, the report said.

Experts further suggest that the government should focus more on developing infrastructure for electric cars such as car charging stations and incentivise the construction of battery factories to reduce vehicle production costs and with it sales prices.

VinFast, Kia, Mercedes-Benz to introduce new electric vehicles in Vietnam

This year, Vietnam’s domestic market will see the introduction of a number of electric vehicles, including models from domestic carmaker VinFast, as well as from Kia and Mercedes-Benz.

VinFast will market its VF8 and VF9 models, formerly named VF e35 and VF e36, while Thaco, the local assembler and distributor of Kia vehicles, will debut its Kia EV6 electric crossover in the second quarter 2022.

Mercedes-Benz said it would market the EQS, a large electric sedan, in the Vietnamese market. The model has already appeared in the firm’s product catalog in Vietnam. Along with EQS, Mercedes-Benz is also considering to market the EQB, an all-electric seven-seater SUV.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

 

 

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