Thaco proposes to maintain the 50% registration fee reduction for locally-produced cars.

Thaco has stated that due to the pandemic, both the global and Vietnamese economies have faced significant difficulties and challenges since 2020.

The current struggle to recover the economy has heightened the severity of the recession. Forecasts suggest that both the domestic and global economies will continue to decline and struggle to recover in 2024 and 2025.

As a result, domestic car manufacturing and assembly businesses have been heavily affected. These businesses have nearly depleted their financial resources, evident from the high inventory of materials and finished vehicles.

In their proposal, Thaco has projected a sharp decline in the car market in Vietnam in 2023. Sales volume is estimated to be just over 330,000 cars, a 24% decrease compared to 2022, and lower than both 2020 and 2021 (which had consumption of nearly 363,000 and over 344,000 cars, respectively).

If no measures are taken to stimulate car purchases in 2024, inventories are forecasted to continue to increase. This will result in additional costs such as storage costs, costs of preserving finished vehicles, and costs of repairing/maintaining stored vehicles. These factors make it challenging for businesses to maintain production and operations.

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

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, Thaco suggests reducing registration fees for domestically produced and assembled cars by 50% for a suitable period. They also propose extending the deadline for special consumption tax payment for domestically produced and assembled cars in 2024.

In response to the proposal, on January 2, the People’s Committee of Quang Nam Province assigned the Department of Planning and Investment to lead and coordinate with relevant agencies, units, and localities to study the proposal’s content. The goal is to review, inspect, summarize, and advise the Provincial People’s Committee on considering and proposing to the government according to regulations.

TH (Tuoitrethudo)