HCMC – The Vehicle Importers Vietnam Association (VIVA) has submitted a request to the Government seeking approval for a 50% reduction in registration fees for imported automobiles, matching the fee structure proposed for locally-made cars.

VIVA, which has 12 members, made the above proposal in their written document to the Government, the Ministry of Industry and Trade and the Ministry of Finance.

Following proposals from industry associations and localities after declining sales and a sluggish automotive market, the prime minister earlier directed the relevant ministries to consider incentives for locally-made cars.

VIVA has cited the significant decrease in car consumption in the Vietnamese market and recent difficulties with car testing as factors contributing to high inventory levels for automotive enterprises.

The situation appears to be particularly dire for imported automobiles as compared to cars manufactured locally. According to recent data, the number of completely built-up imported cars in Vietnam has tripled compared to the same period last year, totaling 12,800 vehicles.

VIVA has thrown its support for the proposed 50% reduction in registration fees for both imported and locally-made automobiles, citing the need for equality and compliance with the General Agreement on Tariffs and Trade (GATT), of which Vietnam is a signatory, the association has stated.

Locally-made cars have already been granted a 50% reduction in registration fees twice, in 2021 and 2022. However, this incentive policy has not yet been extended to imported automobiles.