Vietnam to Waive Import Tariffs for Environment-Friendly Auto Parts

Thursday, March 21, 2019 09:32

The Ministry of Finance is drafting a decree which will add electric cars to the list of incentive tax beneficiaries.

Current, auto parts for fuel-efficient cars can be imported tax-free but not environment-friendly cars, and hence the need for the decree, the ministry said.

"The decree will encourage the development of the local car industry."

There are no Vietnamese businesses manufacturing or assembling environment-friendly vehicles, which the ministry defines as electric, hybrid, biofuel-only, and compressed natural gas cars.

There are 358 businesses in the auto industry but Vietnam imports over 90 percent of auto parts. Most cars sold in the country are foreign brands imported or assembled locally.

Source: VNA