The Vietnamese government last week announced it has extended its main sales incentive for battery electric vehicles (BEVs) sold in the country until 2027, as it looks to increase volumes and investment in the segment.
The Ministry of Finance confirmed it will waive the registration tax on BEVs sold in the country until the end of February 2027, extending the existing incentives by an additional two years. The move is designed to improve the competitiveness of BEVs compared with internal combustion engine (ICE) passenger vehicles, which incur a registration tax of around 12%.
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Local manufacturer VinFast, which dominates the local BEV market with models such as the VF3 and VF5, had lobbied hard in recent months for the extension. The company has since announced it is cutting the prices of 11 models by up to 14% from this month, as it looks to double sales volumes this year following strong growth in 2024.
The company sold around 87,000 vehicles in Vietnam last year, according to local reports, most of which were BEVs. The company reported global sales of over 97,000 units last year – a threefold increase on 2023 volumes.
Chinese brands such as BYD, SAIC’s MG, GAC Aion and Wuling have recently entered the local BEV market.
