Vietnamese electric taxi company Xanh SM operates a fleet exclusively using VinFast electric vehicles. (Photo: Xanh SM)
Vietnam will remove its exemption from registration fees for electric vehicles (EVs) in March. EV owners will be required to pay a registration fee based on the number of seats, which will be 50% of the fee for regular gasoline vehicles. Analysts predict that this move will increase the price of EVs and potentially affect market demand.
EV owner to pay registration fees in Vietnam
According to the Vietnamese government, the registration fee for EVs will vary depending on the location of purchase, ranging from 5% to 6% of the vehicle's listed price.
For instance, the cheapest one, the Wuling Hongguang MINI EV, would incur a 5% registration fee, amounting to around 9.85 million VND (about 388 USD). On the other hand, for high-end models like the Rolls-Royce Spectre, the registration fee would be approximately 89.5 million VND (about 35,000 USD).
Industry analysts believe that before the registration fee is fully reinstated, there could be a surge in purchases, but overall, the removal of some incentives may lead to a slowdown in the growth of Vietnam’s EV market, possibly even causing a decline this year.
The Vietnamese government introduced incentives such as registration fee exemptions in 2022, sparking an EV boom and facilitating the rapid development of Vinfast, the country's only domestic EV manufacturer, which has been dubbed "Vietnam's Tesla."
The government also invested in EV charging infrastructure to further solidify the market and accelerate the country's vehicle electrification efforts. However, the three-year decree is set to expire at the end of February.
Vinfast's rapid growth fueled by Vietnam's EV registration fee exemption policy. (Photo: Vinfast)
Vietnam's EV sales expected to reach 160,000 units in 2025
The World Bank's report highlighted significant growth in Vietnam's EV sales, forecasting over 160,000 units this year and nearly 1.3 million units by 2035. However, some companies argue that the government’s current incentives remain insufficient compared to other regions. They recommend further measures, such as tax reductions, lower interest rates, and increased investment in infrastructure.
Chinese automakers are also making a significant impact in Vietnam’s market. Brands like Wuling, BYD, and Chery have generated significant attention, a sharp contrast to the situation a decade ago when Chinese brands like Zotye and Brilliance withdrew from the market.
Experts suggest that Chinese manufacturers' low-price strategy, offering massive discounts in the billions of VND, combined with modern designs and high-tech features, has quickly captured the attention of Vietnamese consumers.
However, this trend seems to apply mostly to new cars, as Chinese-made EVs tend to depreciate faster in the local used car market, raising concerns about vehicle quality.
Source: Vietnamnet, VnEconomy, Tuoi Tre News
