(Vietnam, 27th) Vietnam has decided to extend the special consumption tax incentive policy for electric vehicles with less than 24 seats until the end of 2030. The tax rate for electric vehicles will continue to enjoy the lowest rate among all vehicle categories.
On the 24th, the Vietnamese National Assembly passed a law amending and supplementing certain articles of the and others. According to Xinhua News Agency, Vietnam had previously reduced the special consumption tax for electric vehicles to 1%-3% starting March 1, 2022, originally set to expire on March 1, 2027; the special consumption tax rate for fuel vehicles ranges from 10% to 150%. The Vietnamese transport department stated that electric vehicles "are enjoying the lowest tax rate in the automotive industry."
Vietnamese Finance Minister Ho Duc Phoc pointed out in a report to the National Assembly that extending the preferential period will help stabilize consumer expectations and will also benefit enterprises in formulating medium- and long-term investment plans.
According to data from the Vietnamese Ministry of Finance, electric vehicle sales in Vietnam have grown rapidly in recent years, with annual sales increasing from about 7,000 units in 2022 to an estimated 175,000 units in 2025.