On June 28th, 2023, the Government issued Decree No. 41/2023/ND-CP regulating the level of registration fees for cars, trailers or semi-trailers pulled by cars, and similar vehicles produced and assembled in the country. Accordingly, from July 1st, 2023, to December 31st, 2023, the registration fee will be 50% of the fee specified in Decree No. 10/2022/ND-CP dated January 15th, 2022, of the Government which regulates registration fees.
According to many experts, the reduction of 50% in registration fees for domestically produced and assembled cars will bring many benefits to the market and stimulate consumer shopping. This policy is expected to help reduce difficulties for domestic car manufacturing and assembly businesses due to the negative impact of the economic downturn in the post-pandemic recovery period, thereby contributing to increasing state budget revenues.
However, the application of the 50% reduction in registration fees for domestically produced and assembled cars, although it has had a certain impact on increasing purchasing power, still has not achieved the expected level of consumption and sales volume.
In particular, during the 4 months of implementing the 50% reduction in registration fees (from July to October 2023), the sales volume of the Vietnam Automobile Manufacturers Association (VAMA) decreased by 31% compared to the previous 4 months (4 months without the preferential policy of registration fee reduction) and decreased by 16% compared to the same period of the previous year (from July to October 2022).
The continued sharp decline in sales volume even during the implementation of the 50% reduction in registration fees shows that the post-pandemic economic downturn is still ongoing, combined with unpredictable fluctuations in the global economic-political-social situation in recent times, which have created difficulties for both businesses and consumers. As a result, inventory of car manufacturers will affect cash flow, loan interest costs will increase, and it will directly impact the production and operation of many manufacturing and assembly businesses.
From January 1st, 2024 onwards, the registration fees will continue to be implemented according to the regulations in Decree No. 10/2022/ND-CP dated January 15th, 2022, of the Government specifying registration fees and the 50% reduction will no longer apply. To create more momentum for the market during the remaining period of Decree No. 41/2023/ND-CP, members of the Vietnam Automobile Manufacturers Association (VAMA) said they will continue to promote and implement programs to stimulate consumer demand, such as giving an additional 50% reduction in the remaining registration fees to customers, offering attractive discounts, even unprecedented deep discounts, lucky draws, interest rate support, and complimentary accessories.
Trang Nguyen (forum.autodaily.vn)
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