HCM City reduces registration fees from 15 per cent to 10 per cent of the car's value. — Photo dddn.com.vn

HA NOI (Biz Hub) — HCM City will reduce registration fees for vehicles with less than 10 passenger seats on January 1, 2014.

The new fee, calculated at 10 percent of the car's value, is a reduction from the current fee of 15 per cent.

The city's current registration fee is the highest in Viet Nam. It is followed by Ha Noi, with 12 per cent, the central port city of Da Nang, with 10 per cent, and HCM City's neighbouring provinces, such as Dong Nai, Binh Duong, Tay Ninh and Long An, at 10 per cent.

Meanwhile, for automobiles that are registered for the second time, they will pay a registration fee at the rate of 2 per cent, applied at the same rate as found throughout the country.

When HCM City's fee was higher than other provinces, car owners flocked to other provinces to register their cars at 10 per cent, then returned to HCM City to make their second registration at 2 per cent to take advantage of the difference. — VNS