HÀ NỘI — The Government's decision to reduce registration fees for electric cars until 2027 is a significant step towards promoting green transportation and enhancing environmental protection.

This policy aims to encourage more consumers to consider electric vehicles (EVs), which can lead to reduced carbon emissions and a cleaner environment.

The recent issuance of Decree No. 51/2025/ND-CP on March 1, amending provisions related to registration fees, reflects the Government's commitment to these goals.

The decree allowing a zero percent registration fee for battery-powered electric cars until February 28, 2027, is a strategic move to promote clean transportation.

In Việt Nam, the registration fee is a significant cost when purchasing a vehicle. The percentage varies by locality and vehicle type.

For passenger cars, the first-time registration fees are 12 per cent in Hà Nội, Quảng Ninh, and Hải Phòng; 11 per cent in Hà Tĩnh  and 10 per cent in HCM City and most other provinces.

For pickup trucks, the first registration fee is 60 per cent of the passenger car fee in the same locality. From the second time onward, the fee is two per cent, applied uniformly nationwide.

Economic expert Đinh Trọng Thịnh emphasises its importance, especially amid economic challenges and the need for tax and fee support. This policy aims to encourage the adoption of electric vehicles, contributing to environmental sustainability and the transition to greener transport solutions.

By reducing initial costs, it may help stimulate the market and support broader economic recovery efforts.

The registration fee exemption has been instrumental in making EVs more accessible to consumers, leading to significant savings ranging from approximately VNĐ19.7 million (US$788) to VNĐ600 million ($24,000).

For instance, Vũ Phương from Hà Đông District of Hà Nội shared that the exemption influenced his decision to purchase a VinFast’s VF 9 model, saving him over VNĐ200 million.

Meanwhile, auto expert Thế Đạt noted that such incentives not only facilitate consumer access to EVs but also stimulate market growth, allowing savings to be allocated towards vehicle upgrades, service packages, or reducing financial burdens associated with car loans.

In addition, the proposed extension of the registration fee exemption reflects ongoing efforts to promote sustainable transportation and support the growth of the electric vehicle industry in Việt Nam.

The Việt Nam Federation of Commerce and Industry (VCCI) highlights several important benefits of battery-powered electric cars. By doing so, the EVs do not use fossil fuels, which means they do not emit CO₂ or contribute to air pollution. They play a significant role in reducing the greenhouse effect and protecting the environment. 

They said extending the zero per cent fee for the first registration of electric cars can encourage more consumers to adopt these vehicles. This shift in consumer behaviour supports a transition towards greener transportation options. The policy would create favourable conditions for manufacturers and assemblers of electric cars, encouraging investment in market expansion and increased production capacity.

According to the Ministry of Finance's assessment, if the zero per cent registration fee is applied to battery-powered electric cars in the period of March 1, 2025 - February 28, 2027, the State budget revenue from registration fees will decrease by about more than VNĐ4.8 trillion ($192 million) / year.

This continuation of the zero per cent registration fee policy for battery-powered electric vehicles (EVs) is a strong incentive for consumers and businesses, reinforcing Việt Nam's commitment to green transformation. The rapid increase in EV registrations - from just over 400 per month in 2022 to more than 6,600 per month in 2024 - demonstrates the success of such policies in promoting adoption.

However, the Ministry of Finance's concerns about the environmental impact of EV battery production and disposal, highlight a critical challenge.

While EVs reduce emissions during usage, their production, especially battery manufacturing and recycling, poses environmental risks due to the extraction and processing of lithium, nickel and copper.

Addressing these concerns requires stricter regulations on battery waste management and increased investment in recycling technologies. — VNS