MINISTRY OF INDUSTRY AND TRADE OF VIETNAM
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THE SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
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No: 2464/BCT-CN
Re: Implementation of Government’s Resolution No. 31/NQ-CP dated March 07, 2023

Hanoi, April 25, 2023

 

To: The Ministry of Finance.

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1. Regarding 50% reduction in registration fees for domestically manufactured automobiles

In 2020-2022, in the face of the decline of the auto market due to the impact of the COVID-19 pandemic, at the request of the Ministry of Finance, the Government has applied 50% reduction in registration fees for domestically manufactured and assembled automobiles by promulgating Decree No. 70/2020/ND-CP, which comes into force from June 28, 2020 to the end of December 31, 2020 and Decree No. 103/2021/ND-CP, which comes into force from December 01, 2021 to the end of May 31, 2022. This policy has brought positive effects that assist automobile manufacturing and assembling enterprises to restore production, gradually expand the scale of investment, and localize products in order to promote development of supporting industries, thereby promoting economic development, creating jobs, and contributing to assurance of social security in the context of difficulties caused by the pandemic.

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According to the actual auto market at the end of 2022 and the beginning of 2023, the sales of the whole market in the first 3 months of 2023 decreased significantly (including tourist and commercial automobiles).  According to reports from the Vietnam Automobile Manufacturers Association, Hyundai Thanh Cong and Vinfast, total market sales in January 2023 reached 17.852 units, down 60% compared to December 2022 and down 54% compared to January 2022; total market sales in February 2023 reached 26.419 units, up 48% compared to January 2023 and equal to that of February 2022. Total market sales in March 2023 reached 32.819 units, up 24% compared to February 2023 but down 28% compared to March in 2022. In the first 3 months of 2023, total market sales reached 77.090 units, down 31% compared to the first 3 months of 2022.

In face of the fact that the auto market has plummeted, automobile manufacturing and assembling enterprises have offered many incentive and support programs to encourage consumers to buy automobiles. Resources and promotion solutions of each enterprise will, however, fail to leverage/give a lift to the auto market so that it can again thrive in a steady and sustainable way. Over the past time, the Ministry of Industry and Trade has received recommendations from the Vietnam Automobile Manufacturers Association (VAMA), Vietnam Association of Mechanical Industry (VAMI), Thanh Cong Group Joint Stock Company, the People's Committee of Quang Nam Province and the People's Committee of Ninh Binh Province on issuance of the policy of reduction in registration fees for customers in order to encourage them to buy automobiles in a strong and effective manner and help enterprises stabilize production and trade and maintain budget revenues from production and trade in automobiles.

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2. Regarding deferral of excise tax on domestically manufactured and assembled automobiles

Article 63 of 2019 Law on Tax administration: “the Government shall decide tax deferral for entities or business lines facing special difficulties in specific periods of time. Tax deferral must not lead to changes to the estimated state budget revenues decided by the National Assembly”.

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However, the Ministry of Industry and Trade requests the Ministry of Finance to also consider deferring excise tax for October 2023 (the deadline for payment of tax of October 2023 is December 20, 2023) to support enterprises (currently, the Ministry of Finance only proposes tax deferral for June, July, August, September 2023 in Official Dispatch No. 2914/BTC-CST dated March 30, 2023).

For your information and consideration./.

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PP. THE MINISTER
DEPUTY MINISTER




Phan Thi Thang

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