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Vietnam government agrees to 50 percent registration fee cut for three months

The Government Standing Committee has approved a 50 percent cut to registration fees for locally assembled cars, Tuoi Tre has reported. This would be for three months as opposed to six as had been originally discussed. It is now up to the Ministry of Finance to put together the Decree to be signed and made official.

Of note, the Ministry of Finance earlier this year raised concerns that registration fee cuts may create legal problems. Specifically, the policy could be seen to be discriminating between locally made and imported vehicles which would put it in breach of EVFTA rules.

This was reportedly raised by the EU as a potential problem late last year and could put Vietnam at risk of being sued. In this context, it looks like this short, three-month reduction may be a way to test the waters or possibly avoid legal action altogether by ending before a case is able make its way through the courts.

See also: How is the EVFTA Working Out for Vietnam?

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