PM approves 50% cut for auto registration fees

Prime Minister Nguyen Xuan Phuc has agreed to a 50% reduction in auto registration fees until the end of this year.

Prime Minister Nguyen Xuan Phuc has agreed to a 50% reduction in auto registration fees until the end of this year.

However, it is unclear which exact day the fee cut applied to locally-assembled and produced cars only would take effect.

 

The auto registration fees cut by 50%

The current auto registration fees in Vietnam is 10%, except for Hanoi where the fees of 12%.

The Mercedes-Benz S 450 Luxury is now the most expensive locally-made car with the price of VND4.96 billion (USD215,652). It costs the owner in Hanoi up to VND596 million in registration fees. So the registration fee decrease of 50% could help to save VND298 million (USD12,956).

Similarly, the registration fees for Mercedes-Benz E 300 AMG will be slashed to just by VND146-175 million.

The new policy will benefit local carmakers such as Truong Hai, Thanh Cong, Vinfast, Toyota and Mercedes-Benz. This is also expected to help stimulate demand for domestically-made and assembled cars, instead of imports.

According to experts, car traders would have to adjust imported car prices to compete with locally-made models.