Toyota is proposing that the Vietnamese government recognise hybrid electric vehicles (HEVs) as low-emission vehicles and grant priority access in low-emission zones.
Recognising hybrids
Toyota Vietnam general director Hirata Osamu and representatives from other Japan-based companies met with Vietnamese Prime Minister Le Minh Hung earlier this month for the Vietnam-Japan Local Cooperation Forum.
At the event, Hirata urged the Vietnamese government to officially recognise HEVs as low-emission vehicles. According to the proposal, the recognition of HEVs, which have both a petrol engine and electric motor, can be beneficial for Vietnam’s long-term environmental goals.
Toyota argued that, unlike EVs, hybrids do not require charging infrastructure and can also decrease fuel consumption and carbon emissions. The company also considered Vietnam’s climate, stating that hybrids can operate during natural disasters, independent from electricity supplies.
According to Hirata, if Vietnam were to take “an emissions-based approach” to calculating special consumption tax on vehicles, distinguishing between vehicles’ environmental performances would be easier and would increase incentives for low-emission vehicles. Vietnam currently bases its special consumption tax on a vehicle’s engine displacement.
In its proposal, Toyota requested that HEVs be given the same priority access in low-emission zones as battery electric vehicles (BEVs).
In response, Prime Minister Hung asked government offices to review Toyota’s proposals “urgently.” Furthermore, Hung asked the Ministry of Finance to review and report on Toyota’s special consumption tax proposal by October.
“I expect Japanese businesses to continue expanding investment in Vietnam and work closely with Vietnamese companies to fully tap the potential and scope for cooperation between the two economies,” he said.
Toyota and hybrids
For the month of August, Toyota and Lexus combined reported sales of 4,900 vehicles, 31 per cent down from July. By itself, the Japanese automaker sold 4,767 units. Almost 22 per cent, or 1,046 of these units were HEVs, creating a promising outlook for Toyota in the market segment.
Aside from its established 30-year presence in Vietnam, Toyota has also invested around AUD $393 million into a new plant in the Phú Thọ Province. Construction of the facility will begin next year, while Toyota aims for production to begin in 2029. Its agreement with the local government included a 28.6-hectare facility with annual production capacity of 52,000 vehicles. The plant will also include a paint shop and stamping plant.
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