Vietnam Plans EV Tax Cut Extension to 2030

Vietnam is planning to extend its special consumption tax reduction on electric vehicles (EVs) by nearly four years, pushing the benefit timeline to the end of 2030. The proposal will be submitted to parliament for approval, aiming to accelerate EV adoption and reduce emissions.

The country had earlier reduced EV tax rates in March 2022 from 4%–11% to 1%–3%, a policy currently set to expire in February 2027. The move has significantly boosted EV sales, which surged from around 7,000 units in 2022 to nearly 175,000 units last year.

According to the government, each EV helps cut approximately 0.85 metric tons of carbon dioxide emissions annually compared to internal combustion engine vehicles, supporting Vietnam’s 2050 net-zero target.

Officials believe that continuing tax incentives will further promote clean-energy transportation, lower emissions, and improve air quality, especially in major cities. Additionally, the government has extended the exemption on first-time EV registration fees until February 2027.