Vietnam’s electric vehicle market is about to shift gears as the government prepares itself to reinstate registration fees starting March 2025. After enjoying three years of exemptions, EV buyers will soon have to pay a registration fee equivalent to 50% of what gasoline vehicle owners pay, which may redefine the country’s accelerating EV adoption.
Driving into a New Era
The new policy, stipulated in Decree No. 10/2022/ND-CP, will set a registration fee equivalent to 5 percent to 6 percent of a vehicle’s listed price based on the purchasing location. So, while the cost of such low-priced models as the Wuling Hongguang MINI EV will only amount to 9.85 million VND ($388), expensive luxury electric cars like the Rolls-Royce Spectre would likely incur close to 895 million VND ($35,000) worth of fees.
Industry insiders have reacted differently to the move. Most of them said there would be a buying frenzy in the short term as consumers rushed to take advantage of current fee waivers. In the long term, the extra costs will scare off some would-be buyers from the market and dent the market’s current rapid expansion.
A Jolt to Vietnam’s Electric Vehicle Market?
A registration-fee exemption for EVs by Vietnam in 2022 lit the fuse of a buying frenzy, putting the country on the map as a rising hotbed for electric mobility. The local manufacturer that took greatest advantage of those incentives was VinFast, earning it the nickname “Vietnam’s Tesla.” With government support, charging networks grew, and a wave of innovation in clean transport swept the nation.
But with the exemption period coming to an end, the government is moving toward a more standardized approach. Now, some key questions: Will Vietnam’s EV boom run out of juice? Will automakers introduce new incentives to keep demand going?
Foreign Players in the Game
Meanwhile, Chinese automakers have aggressively made inroads into the Vietnamese market with affordable, tech-loaded EVs under brands such as BYD, Chery, and Wuling, heaping pressure on both domestic and Western manufacturers. With its low-cost strategy combined with deep discounts, Chinese EVs have lured in Vietnamese buyers, though concerns over resale value remain strong.
The Road Ahead
Under the Damocles’ sword of uncertainty, Vietnam’s EV market still promises much. The World Bank sees 160,000 units being sold in 2025; looking further ahead to 2035, some 1.3 million units will be sold. Industry leaders, however, demand that the government roll out more measures to sustain growth, from reduction in taxes and interest rates to widening infrastructure investment.
With March 2025 fast approaching, Vietnamese consumers eyeing an EV may want to act quickly before registration fees add extra weight to their budgets. Whether this policy change will steer the market into a slowdown or merely into a new phase of growth, time will tell. One thing is certain: the road to electrification in Vietnam is still under construction.