Gov't halves registration fees for domestic cars to boost sales

The Government has promulgated Decree No. 109/2024/ND-CP on on registration fees for domestically produced and assembled cars

Under the Decree, registration fees for domestically produced and assembled cars shall be cut by half from September 1, 2024 to November 30, 2024.

From December 1, 2024, the current registration fees shall be applied to cars produced and assembled in Viet Nam.

The 50 percent decrease in the registration fees is a financial support solution to boost sales, according to the Ministry of Finance.

The number of cars sold in the first six months this year was 67,849, down 15 percent from the same period last year, reported the Viet Nam Automobile Manufacturers' Association (VAMA).

In April, domestic auto sales dipped 3-14 percent compared to that of imported cars, the VAMA said.

The latest policy could reduce State's budget revenue by around VND867 billion per month, said the ministry.

Registration fees are calculated based on car prices in each locality. The rates are 12 percent in Ha Noi and Hai Phong, and 10 percent in Ho Chi Minh City.

Last year, the Government also decided to slash registration fees for domestic cars by half in the last six months./.