To accelerate the transition toward green mobility, the Government of Vietnam has been implementing a series of EV-related policies, particularly tax and fee incentives, as well as mechanisms for public procurement and financial support for consumers. These initiatives not only demonstrate Vietnam’s proactive approach in embracing global technology trends but also embody its commitment to emission reduction, environmental protection, and sustainable development.
Government support policies are not merely economic instruments; they also shape the market and create momentum for both individuals and businesses to participate in the green transition, thereby contributing to the realization of national strategic objectives.
EV Tax Incentive Policies in Vietnam Về Ưu Đãi Thuế
Law No. 03/2022/QH15, effective from March 1, 2022, introduced special consumption tax (SCT) rates ("SCT") as part of Vietnam’s EV policy frameworkThese rates are significantly lower than those applied previously, creating a substantial competitive advantage for EVs.
The EV SCT incentive follows a phased roadmap: an initial preferential period with low tax rates, followed by gradual increases thereafter. This reflects a strong push in the early stages to catalyze market adoption, with later adjustments to balance revenue considerations and market maturity.
| Vehicle Type | Tax Rate (03/01/2022 – 02/28/2027) | Tax Rate (From 03/01/2027 onwards) |
| Passenger cars up to 9 seats | 3 | 11 |
| Passenger cars 10–16 seats | 2 | 7 |
| Passenger cars 16–24 seats | 1 | 4 |
| Passenger & cargo dual-use vehicles | 2 | 7 |
In addition to SCT incentives, the Government also issued Decree No. 51/2025/ND-CP amending Decree No. 10/2022/ND-CP, under which EVs will continue to enjoy a 100% exemption on first-time registration fees until February 28, 2027. This replaces the initial plan of imposing a 50% fee from March 1, 2025. Extending the 100% exemption demonstrates Vietnam’s stronger and more flexible commitment to supporting EV market development.
These tax policies have been instrumental in driving Vietnam’s green transport transition, reducing carbon emissions, and protecting the environment. They also align with the national green energy transition roadmap set forth under Decision No. 876/QD-TTg by the Prime Minister, while supporting Vietnam’s international climate commitments at COP26 and COP28.
Vietnam’s EV tax policies are not merely economic instruments but also an integral part of the country’s overall efforts to achieve national environmental goals and fulfill its international climate commitments.
Market Potential and Investment Opportunities in Vietnam
Through its EV policies, Vietnam has articulated a clear strategy for promoting green mobility, with EVs at the core. Tax and fee incentives not only reflect carbon reduction and environmental protection goals but also create a competitive investment environment for both domestic and foreign enterprises.
The results are evident: in 2024, Vietnam’s auto market rebounded strongly, reaching approximately 340,000–390,000 new vehicles. Within this, the battery electric vehicle (BEV) segment recorded triple-digit growth, partly driven by tax incentives and the introduction of more affordable models. This indicates that Vietnam has moved beyond its experimental phase and is now entering a trajectory of sustained growth.
According to multiple market reports, Vietnam’s EV industry is projected to grow at over 20% annually between 2025 and 2030. This growth reflects not only end-user demand but also opportunities across the supply chain—from battery and component manufacturing to vehicle assembly.
The current regulatory framework provides three major advantages:
- Stability and Transparency – Laws and decrees clearly outline incentive roadmaps until 2027, allowing investors to forecast cash flows and plan capital recovery with confidence.
- Multi-layered Incentives – Beyond SCT and registration fee exemptions, EV manufacturers in Vietnam may also benefit from corporate income tax incentives, reduced import tariffs on components under FTAs, and preferential land policies in industrial zones.
- Alignment with National Energy and Environmental Strategies – EV projects are recognized as direct contributions to Vietnam’s Net Zero 2050 target, making them eligible for green financing and international support programs.
With favorable policies, strong market momentum, and increasing competitiveness, Vietnam is entering a breakout phase in EV development. For international investors, delays may mean missing the opportunity to secure a first-mover advantage. Investing in EV manufacturing in Vietnam today is not only a sound business decision but also a commitment to the country’s sustainable development agenda and global trends.
Implementing an EV manufacturing project in Vietnam requires not only financial and technological capacity but also in-depth knowledge of investment, environmental, tax, customs, intellectual property, and cross-border transaction regulations.
From choosing an investment structure (100% FDI, joint venture, or OEM partnership), obtaining an Investment Registration Certificate, to negotiating contracts with partners and ensuring compliance with technical standards—every step demands professional support from experienced advisors.
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