WORDS ON THE STREET 70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Industry
Gov’t considers extending tax incentives for automakers
Hai Yen 20:29, 2021/07/02
Extending tax incentives for domestic manufacturers is vital to help locally-produced cars compete with those imported from abroad.

The Ministry of Finance is tasked with reviewing current tax rates for automobile production and assembly for further extending incentives in this regard, said Deputy Prime Minister Le Van Thanh.

 Car manufacturers are in need of more support from the government. File photo

Thanh made the statement in response to the recent suggestion by the northern province of Hai Duong to address concerns of automakers in a difficult economic environment, in which tax incentives are seen as a key measure.

According to the Hai Duong Province Party Committee, the automobile industry has been a spearhead industry contributing a significant part to GDP growth in countries around the world.

“In Vietnam, the industry makes up 3% of total GDP growth,” stated the provincial Party Committee.

At present, tax incentives for imported auto parts are one of the most important preferential treatments for car manufacturers in Vietnam. This is of particular significance to enhance competitiveness for local cars manufacturers/assemblers given the country’s commitment to free trade agreements to opening up the market for completely-built cars imported from abroad.

For the automobile industry to have time to adjust to new policies, the government should make the decision at least one year in advance of the effective date, stated the Hai Duong Party Committee.

“Issuing policies that have an immediate effect would cause difficulties for firms in drafting their business strategies,” it added.

As domestically produced auto parts are facing fierce competition from imported products in ASEAN, which are enjoying zero import tariff under the effect of the ASEAN Trade in Goods Agreement (ATIGA) since 2018, the government has been providing tax incentives for cars produced locally from November 16, 2017, to late 2022.

RELATED NEWS
TAG: Vietnam automobile industry Covid-19 pandemic nCoV tax incentives car imported
Other news
16:05, 2025/01/21
Sustainable fuel incurs new costs for Vietnamese airlines
Vietnamese airlines have been active in adopting Sustainable Aviation Fuel (SAF), making Vietnam's aviation sector greener.
21:12, 2025/01/12
Hanoi prioritizes key industrial products
The city is offering incentives to key manufacturers of industrial products, focusing on improving the business environment, advancing science and technology, and improving human resources.
16:42, 2025/01/12
AI set to drive Vietnam's economic growth in 2025
In 2024, Vietnam's digital economy saw a major uptick in interest in artificial intelligence (AI).
22:38, 2025/01/11
AEON Vietnam opens another department store in Hanoi
Vietnam remains AEON's second most important market in its medium- and long-term strategic plans.
22:32, 2025/01/09
Support measures to strengthen Hanoi's small businesses and local industries
In 2025, the geopolitical and economic landscape is expected to remain complex, affecting production, investment and trade activities.
17:17, 2025/01/08
European companies endorse Vietnam as investment destination
A large number of European companies foresee an improvement in the macroeconomic outlook for Vietnam in the first quarter of 2025.