The Saigon Times

Cars are on display at an auto show. The Ministry of Finance has written to the prime minister proposing a halt to the reduction in the registration fee for locally assembled or manufactured cars – PHOTO: HUNG LE

HCMC – The Ministry of Finance has written to the prime minister proposing a halt to the reduction in the registration fee for locally assembled or manufactured cars, a measure launched in June to support auto firms struggling with the Covid-19 pandemic and local buyers affected by the contagious disease.

Many sectors in Vietnam, including auto manufacturing, are still being affected by the ongoing global coronavirus pandemic, according to the ministry.

Statistics from the Vietnam Automobile Manufacturers Association indicated that between January and October, automobile sales dipped by 18% year-on-year. Sales of locally-assembled cars fell by 12%, while the number of imported cars sold dropped by 26% year-on-year.

Over the past few months, auto consumption in the local market has gradually rebounded, but has failed to make up for the decline in car sales in the first half of 2020. Car inventories have been higher than those seen during the same period last year, Thanh Nien Online reported.

Despite poor auto sales, the ministry said the reduced registration fee for locally made vehicles should apply until the end of this year only to avoid impact on the State budget.

Earlier in late June, Prime Minister Nguyen Xuan Phuc approved a plan to reduce registration fees for locally assembled or manufactured cars by 50% until the end of the year, aimed at boosting domestic consumption.