Thaco suggests continuing the 50% reduction in registration fees for domestically-assembled vehicles.

According to Thaco, since 2020, the global and Vietnamese economies have faced many difficulties and challenges due to the impact of the pandemic.

Currently, the economy is struggling to recover and continues to face severe recession. According to forecasts, in 2024 and 2025, the domestic and global economies may continue to decline and have difficulty recovering.

This has put a strain on domestic car manufacturing and assembly businesses. The financial resources of these businesses are almost depleted, as evidenced by the high inventory of materials and finished vehicles.

In the proposal, Thaco stated that the car market in Vietnam is projected to have a sharp decline in 2023, with an estimated sales volume of just over 330,000 cars, a 24% decrease compared to 2022, and lower than both 2020 and 2021 (consumption of nearly 363,000 and over 344,000 cars, respectively).

In 2024, if there are no measures to stimulate car purchases, the forecasted inventory will continue to increase, resulting in additional costs such as storage costs, costs of preserving finished vehicles, costs of repairing/maintaining stored vehicles, making it difficult for businesses to maintain production and operations.

The company also mentioned that since 2020, the government’s policies and central agencies have timely supported and brought tangible benefits to businesses. Especially the policy of reducing registration fees by 50% has contributed to financial support for individuals and businesses in boosting domestic consumption. Although the policy directly supports consumers, it indirectly supports businesses by providing additional funding to maintain production and business operations, thereby increasing government revenue.

Therefore, to have timely and practical solutions to promote socio-economic development in 2024, Thaco proposes that the Provincial Party Committee and the People’s Committee of Quang Nam consider and recommend to the government and the Prime Minister to supplement breakthrough support policies in the Program for Economic Recovery and Development – Social 2024 (as implemented in the 2020-2023 period) to support businesses and individuals in promoting domestic production and business development.

Specifically, it is to reduce 50% of registration fees for domestically produced and assembled cars for a suitable period of time. Extend the deadline for special consumption tax payment for domestically produced and assembled cars in 2024.

In response to the above proposal, on January 2, the People’s Committee of Quang Nam Province issued a document assigning the Department of Planning and Investment to lead and coordinate with relevant agencies, units, and localities to study the content of the proposal for recovery and development support policies for the year 2024 of Truong Hai Corporation (THACO); review, inspect, summarize, and advise the Provincial People’s Committee to consider and propose to the government in accordance with regulations.

TH (Tuoitrethudo)