Vietnam extends electric car registration fee exemption until 2030

Vietnam's government has enacted a new decree, extending the exemption of first registration fees for battery-powered electric cars until December 31, 2030. This move aims to further encourage the adoption of electric vehicles and reduce the environmental impact of transportation.

The Ministry of Finance highlighted that the previous implementation of a 0% registration fee for electric cars had largely achieved its intended goals. These objectives included mitigating environmental pollution from vehicle emissions, promoting investment in domestic electric vehicle production, capitalizing on supply chain opportunities, and stimulating consumer demand.

The policy, effective March 1, 2027, replaces Decree 51/2025 and amends Decree 10/2022. The Ministry noted that the prior fee exemption positively influenced consumers, manufacturers, and distributors of electric vehicles, while also impacting air quality and state revenue.

Globally, the electric vehicle market has seen significant growth, becoming a crucial part of the automotive industry. This extension in Vietnam is expected to bolster the domestic market and align with international trends toward sustainable transportation.