Vietnam’s electric automobile industry has started and many enterprises want to join the automobile production chain as they can see great opportunities.

The Ministry of Finance (MoF) has proposed rescheduling excise tax payments for local automobile manufactures and assemblers.

Deputy Minister of Industry and Trade Dang Hoang An and his Russian counterpart Alexey Gruzdev had an online working session on November 3.

The request for a registration tax cut, if approved, will mostly benefit luxury car buyers.

The Vehicles Importers Vietnam Association (VIVA) has submitted a written proposal to the Ministry of Finance regarding a 50% cut in car registration fees.

After 30 years of development, Vietnam’s enterprises can only make 287 car parts, which are mostly simple products. The industry uses a large amount of labor and has low added value and high production costs.

Automobile manufacturers are facing sharp drop in sales and increased inventories as social distancing has been imposed in many cities and provinces, vehicle registration has been halted, and sale agents have had to close the doors.

The prices of domestically assembled automobiles are expected to go down once the luxury tax policy is amended. Strategic small-capacity and fuel saving models will be given priority.

Car sales have dropped sharply because of the fourth Covid-19 outbreak, prompting dealers to offer big discounts.

Some Vietnamese enterprises have invested in electric-car manufacturing and charging stations, but an overall electric car strategy has yet to be developed by the government.

Vingroup has sent a dispatch to the Ha Tinh provincial People’s Committee, proposing a project on an automobile complex.

The global vaccination led to a positive economic outlook, resulting in faster and stronger demand for car.

Experts have suggested imposing high taxes on vehicles and encouraging the use of electric cars.

On March 24, Vinfast made headlines after releasing its statement about receiving orders for its first electric car model VF e34 for VND690 million (about $32,000), to be delivered in the third quarter of 2021. 

In Southeast Asia, Thailand and Indonesia are running a race to become electric car manufacturing centers of the region and the world. Will Vietnam join the race?

Car sale agents have launched promotion programs in an effort to clear stock, but the price reductions are lower than those in the same period last year.

Indonesia aims to become an electric car manufacturing center in the region in the next few years, which will be a competitive challenge for Vietnam's domestic automobile industry.

The Ministry of Investment and Trade (MOIT) has announced that a special bidding session, held once a year, will be organized in May for the right to import used cars.

Though the automobile market has become big enough for manufacturers to step up domestic production, industry policies remain unencouraging.

Vietnam aims to obtain a GDP growth rate of 6.5 percent this year and average income per capita of $3,700. With rising incomes, car sales are expected to boom.