Electric Vehicle Registration Fee Exemption Extended to 2027

The move to promote electric vehicles (EVs) is gaining momentum, especially with the recent announcement that the exemption on vehicle registration fees for battery electric cars has been extended for an additional two years. This initiative not only aims to reduce environmental pollution but also encourages investment in the electric vehicle industry. Starting from March 1, 2025, and lasting until February 28, 2027, new electric vehicle buyers will benefit from a 0% registration fee, reinforcing the government's commitment to fostering a sustainable automotive market.

This recent decision follows the earlier implementation of Decree 10/2022, which had already established a three-year period of complete exemption from the vehicle registration fee for battery electric vehicles. Initially, from March 1, 2022, drivers benefitted from full exemption, and it was planned to shift to a 50% reduction thereafter. However, the government has recognized the need for continuity in support, resulting in the current two-year extension of the total fee waiver.

With this new decree, signed by Deputy Prime Minister Ho Duc Phoc, the government emphasizes the importance of promoting battery electric vehicles as a means to combat air pollution effectively. According to the Ministry of Finance, the adoption of a 0% registration fee has significantly improved air quality and encouraged consumers to prioritize cleaner alternatives in their automotive choices.

Research conducted over the past three years indicates that the exemption has led to a remarkable reduction in public finances, amounting to approximate losses of 8.42 trillion VND. While this reduction raises concerns regarding budget impacts, the long-term benefits appear substantial, particularly in enhancing job creation and stimulating economic growth within the automotive industry.

The environmental advantages cannot be understated. The promotion of electric vehicles supports the green transition, contributing to reduced greenhouse gas emissions. As the market continues to embrace electric mobility, studies suggest a growth rate of 25-30% for EVs annually, further amplifying the positive environmental impact.

Leading manufacturers like VinFast are proactively championing this initiative, suggesting further extensions of the exemption beyond 2027. Their proposal highlights a systematic approach to continue the registration fee exemptions, ensuring that incentives align with consumer preferences and market demands. By advocating for extended support, companies in the industry seek to ensure stability and maintain the momentum toward sustainable transportation solutions.

The extended exemption on registration fees for battery electric vehicles reflects a strategic move by the government to encourage sustainable transportation. As policymakers and consumers work towards greener solutions, the automotive landscape is set to evolve, presenting a promising future. These initiatives not only alleviate financial burdens but also foster a cultural shift towards embracing innovative technologies that prioritize the environment. The continuous investment in electric vehicle infrastructure and production positions our society towards a cleaner, more sustainable, and economically viable future.