Under an decree issued on Monday, battery EVs will continue to be exempt from first-time registration fees from March 1, 2027 to December 31, 2030. The new regulation replaces an earlier decree which had extended the incentive until February 2027.
The Ministry of Finance said the policy is designed to encourage the shift towards cleaner transportation, reduce emissions from road traffic and create favourable conditions for investment in electric vehicle production and distribution.
Since its introduction, the registration fee incentive has played a significant role in supporting the domestic EV market. Battery-powered vehicles were granted a full exemption from first-time registration fees for three years beginning March 2022, followed by a preferential rate equal to 50% of that applied to petrol and diesel vehicles of the same seating capacity.
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A VinFast electric car seen in Hanoi, May 2026. Photo by VnExpress/Hoang Giang |
The policy has helped expand consumer access to EVs, supported manufacturers and distributors, and contributed to environmental protection efforts, the ministry said.
The incentive extension comes as the global electric vehicle market continues to expand rapidly. Worldwide EV sales surpassed 17 million units in 2024 and are expected to exceed 20 million this year, accounting for more than a quarter of total vehicle sales globally.
Many countries are stepping up measures to reduce dependence on fossil fuel-powered vehicles and promote cleaner transport options. Registration fee incentives have emerged as a widely used tool to lower upfront costs and encourage consumers to switch to electric mobility.
The Ministry of Finance said the latest decree is expected to further stimulate EV adoption, strengthen the development of Vietnam’s electric vehicle industry and support the country’s broader strategy of promoting green, low-emission transportation.
Source:e.vnexpress.net
