Registration fees for domestic cars shall be halved for three months, from September to November this year. — Photo of Vietnamplus

The Vietnamese government has announced a temporary 50 per cent reduction in registration fees for domestically produced and assembled cars on August 30.

This policy, detailed in Decree No. 109/2024/ND-CP, will be in effect from September 1 to November 30, 2024. After this period, standard registration fees will be reinstated.

This move aims to stimulate the domestic auto market, which has seen a significant drop in sales—67,849 cars sold in the first half of 2024, marking a 15 per cent decline compared to the same period last year.

The reduction is also intended to counter the trend of declining domestic auto sales compared to imported vehicles, which have been outperforming local models.

The policy is expected to reduce state revenue by approximately VNĐ867 billion (US$34 million) per month. Current registration fees are 12 per cent in Hà Nội and Hải Phòng, and 10 per cent in HCM City, varying by locality.

This isn’t the first time the government has implemented such a measure; a similar fee reduction was applied in the last six months of the previous year. — VNS