Vietnam’s car market is expected to rebound in the last months of 2024, thanks to a proposed 50 percent cut in registration fees for locally made and assembled vehicles. If approved, this measure could give a much-needed boost to the industry, which has struggled with declining sales earlier this year.
The Ministry of Finance (MoF) has proposed extending the reduced registration fees from August 1, 2024, to January 31, 2025. The move aims to stimulate consumer spending, support the local auto industry, and provide financial relief during these challenging economic times.
Despite a surge in domestic car production and quality, sales fell significantly in the first part of 2024. The Vietnam Automobile Manufacturers Association (VAMA) reported a 5 percent drop in sales compared to last year, with just 108,309 vehicles sold between January and May.
The proposed fee reduction is seen as a vital step to revitalise the market. Previous fee cuts in 2020 and 2022 led to a surge in sales, with a 76 percent increase in the second half of 2020 and a 36% rise in the first half of 2022.
In anticipation of this potential policy change, car manufacturers have already started adjusting their prices. Hyundai Thanh Cong, for example, has reduced prices on several models by up to VNĐ 100 million (about $5850.08). However, many buyers are holding off on purchases, waiting to see if the government will confirm the fee reductions.
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