(Vietnam, 26th) Vietnam has decided to extend its special consumption tax incentives for electric vehicles with up to 24 seats until the end of 2030, and electric vehicles will continue to enjoy the lowest tax rates among all vehicle categories.
On Friday (April 24), the Vietnamese National Assembly passed a law to amend and supplement certain articles of the Law on Special Consumption Tax and other related laws. According to Xinhua, Vietnam had reduced the special consumption tax rate for electric vehicles to 1% to 3% starting March 1, 2022, which was originally due to expire on March 1, 2027; the special consumption tax rate for fuel-powered vehicles is 10% to 150%. The Vietnamese transport department stated that electric vehicles “already enjoy the lowest tax rate in the automotive industry.”
In a report to the National Assembly, Vietnamese Finance Minister Ho Duc Phoc pointed out that extending the incentive period helps stabilize consumer expectations and also benefits companies in formulating medium- and long-term investment plans.
According to data from the Ministry of Finance, electric vehicle sales in Vietnam have grown rapidly in recent years, from about 7,000 units in 2022 to 175,000 units expected in 2025.
Image Caption
Electric vehicle sales in Vietnam have grown rapidly in recent years. Shown is a Vinfast electric vehicle dealership in Hanoi on April 11.
In a report to the National Assembly, Vietnamese Finance Minister Ho Duc Phoc pointed out that extending the incentive period helps stabilize consumer expectations and also benefits companies in formulating medium- and long-term investment plans.
According to data from the Ministry of Finance, electric vehicle sales in Vietnam have grown rapidly in recent years, from about 7,000 units in 2022 to 175,000 units expected in 2025.
Image Caption
Electric vehicle sales in Vietnam have grown rapidly in recent years. Shown is a Vinfast electric vehicle dealership in Hanoi on April 11.