The Ministry of Transport has just proposed support policies to encourage the sale electric cars. Illustrative photo.
According to the proposal, buyers of electric cars will be given USD1,000 in cash, and get a reduction or exemption on registration and licensing fees.
The ministry also asked for electric vehicles to receive benefits in urban areas, especially in parking zones.
It also proposed to give preferential tax policies to investors in electric vehicle assembling and electric vehicle battery manufacturing.
Charging stations should also be widely developed in public places and residential areas.
Domestically produced or assembled electric cars of nine seats or less should be given a special consumption tax of 3 percent from February 28, 2027, the proposal suggested. They would also enjoy a Value Added Tax (VAT) exemption in the first five years beginning March 1, 2022 and a VAT cut of 50 percent for the next five years.
Statistics from the ministry showed that the number of electric vehicles made, assembled or imported into Vietnam increased 75-fold in the past two years, from 167 vehicles in 2021 to 12,585 as of July 2023, most of them electric cars and buses.
A Chinese electric car company, Zhidou, recently revealed their plans to begin selling its mini electric A01 car model for VND100 million (USD4,260) in Vietnam.
Zhidou displayed its A01 mini electric car at the 2023 Autotech & Accessories Exhibition held in HCM City in May. The model is designed for urban driving.
Zhidou said that they would partner with a Vietnamese company to assemble the car in the country, and its logo and brand name would be localised for Vietnam.
