Continue to reduce 100% of registration fees for electric cars until February 28, 2027

The policy of reducing 100% of registration fees for electric vehicles until 2027 is expected by experts to promote green transport transition in Vietnam.

The affordable electric mini-SUV VinFast VF3 brings a breath of fresh air to the Vietnamese electric vehicle market. (Illustration photo: VinFast)

On March 1, the Government issued Decree No. 51/2025/ND-CP amending and supplementing a number of articles of Decree 10/2022/ND-CP.

Accordingly, from March 1, 2025 to February 28, 2027, the initial registration fee for electric cars will be 0%. Thus, electric cars will continue to enjoy preferential registration fees for another 2 years.

In a recent draft for comments, the Ministry of Finance proposed extending the exemption of all registration fees for battery-powered electric vehicles by 2 more years, until February 28, 2027.

According to calculations by the Ministry of Finance, exempting registration fees for two more years for electric vehicles could reduce the budget revenue by about VND4,800 billion per year.

Over the past three years, the budget revenue reduction due to the exemption of registration fees for electric cars has been nearly 8,420 billion VND. This is because the number of battery-powered electric cars has increased rapidly, from an average of over 400 cars registered with registration fees per month in 2022 to over 6,600 cars in 2024.

However, the Ministry also said that the development of electric vehicles contributes significantly to reducing greenhouse gas emissions, with electric vehicles in Vietnam contributing 0.5 million tons of CO2 equivalent each year. This reduction in emissions may increase in the future as electric cars are forecast to grow 25-30% each year.

In addition, battery-powered electric cars operate smoothly, making almost no noise, while internal combustion engine cars often have loud engine noise, affecting the living environment. Continuing to collect 0% registration fee for battery-powered electric cars will help develop the market, create jobs, increase income for workers and promote economic growth.

Along with solutions to exempt and reduce registration fees, the Ministry of Industry and Trade also sets a target that by 2030, the proportion of electric cars, hybrid cars, and green cars (using solar energy, biofuels or other green fuels) will account for about 18-22% of total market sales, equivalent to 180,000-242,000 units./.

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