Vietnam Extends EV Registration Fee Exemption Until 2027

Posted by Written by Vu Nguyen Hanh Reading Time: 4 minutes

Vietnam has extended its 100 percent registration fee exemption for battery-powered electric vehicles (EVs) through 2027. The decision is set to further incentivise the green transitions among consumers and businesses.

Since 2022, Vietnam has provided a full exemption on EV registration fees for three years, followed by a 50 percent reduction for the subsequent two years. Without further action, this incentive would have expired on February 28, 2025, requiring EV buyers to cover 50 percent of the registration fee. However, Decree No. 51/2025/ND-CP (“Decree 51”), issued on March 1, 2025, has officially extended the full exemption for another two years, lasting until February 28, 2027.

Car registration fees in Vietnam

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In Vietnam, car registration fees are calculated based on automobile type, location, and government incentives. The formula differs for new and used vehicles:

  • New car registration fee = Assessed Price x Registration fee rate (percent)
  • Used car registration fee = (Listed price x Depreciation rate (percent) x 2 percent

Where:

  • Registration fee pricing is determined by the Ministry of Finance.
  • Car registration fee rates are outlined under Clause 5, Article 8, Decree No. 10/2022/ND-CP (“Decree 10”).
  • Depreciation rates for used cars are prescribed under Clause 3, Article 3, Circular No. 13/2022/TT-BTC.
  • A two percent registration fee applies nationwide for second-time registrations.

New Car Registration Fee Rates under Decree No. 10/2022/ND-CP

Vehicle type

Fee rate

Cars, trailers, or semi-trailers towed by cars

2%

Cars carrying up to 9 seats (including pick-up trucks) *

10%

Pick-up trucks (with a carrying capacity of less than 950 kg and up to 5 seats)

60% of the fee for cars up to 9 seats

Van trucks (with a carrying capacity of less than 950 kg)

60% of the fee for cars up to 9 seats

Electric cars **

0% in the first 3 years; and

50% of the fee for gasoline or diesel cars in the next 2 years

 *  Provincial and municipal governments may adjust rates but cannot exceed 50 percent of the standard rate.

**Updated under Decree 51.

 

Depreciation Rates under Circular No. 13/2022/TT-BTC

Time used

Depreciation rate

New asset

100%

Within 1 Year

90%

Over 1 to 3 years

70%

Over 3 to 6 years

50%

Over 6 to 10 years

30%

Over 10 years

20%

Strengthening Vietnam’s EV market through policy

Vietnam’s long-term electrification roadmap hinges on strategic incentives like Decree 10, which plays a remarkable role in encouraging both businesses and consumers to adopt EVs.  Prior to its enactment, Vietnam’s EV market was limited to a few models, such as VinFast VF e34 and Porsche Taycan. However, following Decree 10’s introduction, a wave of new battery electric vehicles (BEVs) entered the market, including VinFast VF 8, VF 9, BMW, Mercedes-Benz EQS, and Audi e-tron.

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Despite the positive development, Vietnam remains modest compared to global standards. Experts argue that, in addition to the preferential registration fee rate, EVs are subject to preferential special consumption tax rates of 15 percent, much lower than the 35-to-50 percent levied on conventional gasoline and diesel vehicles.

Given the current inadequate infrastructure for EVs in Vietnam, industry analysts caution that limited charging networks could slow EV adoption as the exemption gradually reduces to 50 percent. The new rate could result in price increases that might undermine the growing demand.

Extended exemptions: Impacts and opportunities

Stimulating EV market

The extension of registration fee exemptions until March 2027 is expected to save citizens tens to hundreds of millions of VND, making EV ownership more attractive. Moreover, with rising fuel prices and increasing awareness of sustainable mobility, public interest in EVs is anticipated to rise steadily over the next two years. Decree 51 will play a critical role in sustaining momentum.

Enhancing competition among EV manufacturers

In 2022, the Vietnamese Prime Minister approved Decision No. 876/QD-TTg, which outlines the Action Program for Green Energy Transition and the Reduction of Carbon and Methane Emissions in the Transport Sector. Decree 10 and Decree 51 align with the government’s green transition plan, fostering greater competition among automakers.  

VinFast, Vietnam’s dominant EV player, stands to gain pronouncedly due to its extensive market share and charging network. Simultaneously, international companies like Tesla, BYD, Hyundai, Kia, and MG are increasingly eyeing Vietnam’s market due to the preferential registration fee. This trend is likely to motivate these firms to import and assemble EVs in Vietnam, capitalizing on reduced fees and growing market opportunities.

Encouraging investment in charging infrastructure

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The exemption policy extension could encourage much-needed investments in Vietnam’s charging infrastructure. A sustainable and scalable EV market requires proactive efforts to build a strong network of charging stations. 

This could lead to the development of various charging station models, including fast charging, residential charging at apartment complexes, stations in shopping centers, and mobile charging units, better addressing the needs of EV users in the future.

Disrupting the gasoline vehicle market

The policy will potentially have a negative impact on the gasoline car market as EVs gain traction. Gasoline car manufacturers may also need to launch incentive programs, reduce prices, improve service quality, or support registration fees to boost demand.

Takeaway

Vietnam has extended the 100 percent registration fee exemption for EVs until 2027, aiming to boost the adoption of green transportation. To further empower the green transition in Vietnam’s transportation, the government is anticipated to introduce additional policies and higher technical barriers for gasoline cars in the near future. Businesses, therefore, are encouraged to actively invest in innovation, optimize production, and navigate potential policies to stay ahead of the emerging EV trend in Vietnam.

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