Vietnam to cut auto registration fee by half

By Thanh Nhan May 19, 2020 | 08:30 pm PT

A domestically-assembled Hyundai Grand i10 seen in a dealership in Thu Duc District, Ho Chi Minh City. Photo by VnExpress/Thanh Nhan.

The government has green-lighted a cut in registration fees for locally made cars by half in an effort to boost falling demand.

The date of the cut has not been announced, but it will be in effect until the end of this year.

Registration fees are 12 percent of the car price in Hanoi and 10 percent in Ho Chi Minh City and Da Nang.

This means registration of a VND1.35 billion ($58,000) Toyota Fortuner SUV in HCMC costs VND135 million ($5,800) and will be reduced to VND68 million ($2,900).

Analysts said the cut could boost car sales, which plummeted in the first four months of this year due to the impact of coronavirus, and auto brands might consider lowering prices of imported cars to compete.

Auto sales fell 36 percent year-on-year in the period to 64,100 units, of which 63 percent were domestically made, according to the Vietnam Automobile Manufacturers Association.