VinFast is building electric car charging stations The Ministry of Finance has just sent a document to the Ministry of Industry and Trade, the Ministry of Justice, the Ministry of Natural Resources and Environment and the Ministry of Transport, to respond to tax incentives for battery electric cars. Proposals for tax incentives only mention battery electric vehicles (BEVs). Currently, according to statistics, battery electric vehicles account for about 1% of electrified vehicles in Vietnam. Electric vehicles include many types of vehicles. In addition to gasoline-powered vehicles combined with electric energy (including HEV, PHEV) and Hydrogen-fueled cars (FCEV), there are currently BEV (pure electric) battery electric cars. Completely electrically charged from an external source. The two types of hybrid vehicles move mainly with internal combustion engines, in parallel taking advantage of the benefits of an electric powertrain consisting of an electric motor with a battery. FCEVs have an advantage over BEVs when the charging time is short, but the production of water makes hydrogen fuel-powered electric vehicles only suitable for island nations, arid areas, and unsuitable for urban areas. big. Meanwhile, BEV battery electric vehicles have a minimalist structure, run short distances, can consume electricity everywhere, have great advantages in urban areas. With three types of vehicles HEV, PHEV and FCEV all use gasoline and gas, so they have more impact on the environment than BEV models. Electric cars are becoming an advantageous choice to replace vehicles using internal combustion engines, especially battery electric cars (BEVs). Many countries around the world have had preferential policies and tax support to prioritize the development and production of battery electric vehicles. According to the Ministry of Finance, Vietnam has a number of preferential policies for electric vehicles. Accordingly, electric cars carrying passengers with less than 9 seats are entitled to the special consumption tax rate of 15% (ie 10% reduction compared to cars of the same type using fossil fuels; 10-16 seats are allowed to be used for cars of the same type using fossil fuels. tax rate of 10% (5% reduction compared to cars of the same type running on gasoline) and the tax rate of 16 to less than 24 seats is applied at the tax rate of 5% (5% reduction compared to cars of the same type running on petrol). At the same time, the Law on Special Consumption Tax No. 27/2008/QH12 also stipulates the special consumption tax rate for environmentally friendly vehicles. Specifically, vehicles running on gasoline combined with electric energy and bioenergy, in which the proportion of gasoline used does not exceed 70% of the energy used by the vehicle, is entitled to a tax rate of 70% for vehicles of the same capacity. species. For cars running on bio-energy, the special consumption tax rate is only 50% compared to cars of the same type. Meanwhile, about the current registration fee, there are only preferential rates for buses using clean energy while there is no policy applicable to other environmentally friendly vehicles. To encourage production and stimulate consumers to use BEVs, contributing to reducing the emissions released into the environment by vehicles, contributing to the protection of the ecological environment and based on the outstanding advantages of vehicles. BEV, the Ministry of Finance is planning to propose new incentives for this model. An electric vehicle charging station in Ho Chi Minh City Specifically, incentives related to excise tax fall under the jurisdiction of the National Assembly. Therefore, the National Assembly must amend the excise tax law. The Government has also assigned the Ministry of Finance to preside over the overall assessment of the implementation of the excise tax policy on automobiles in the past time to study and amend the excise tax law accordingly. Regarding the registration fee under the authority of the Government, when there is a need to change, it will amend and supplement Decree No. 14/20216/ND-CP on registration fee. The Ministry of Finance said that in the past time, it has also received recommendations from a number of associations on adjusting registration fee rates to remove difficulties for businesses. Therefore, the Ministry of Finance is also evaluating the overall policy on registration fees and is expected to submit it to the Government in October. The Ministry of Finance also asked agencies to propose specific content on special consumption tax incentives and registration fees related to battery electric vehicles to summarize and report to the Government. Battery-powered electric vehicles currently account for a very small percentage in Vietnam. According to data from the Vietnam Automobile Manufacturers Association (VAMA), the number of electrified vehicles registered in Vietnam is still very modest, accumulating just over 1,000 units by the end of 2020. of which BEVs only account for about 1%, the rest are HEV and PHEV models. According to the Ministry of Finance, currently only VinFast invests in producing electric vehicles, according to reports, VinFast has now launched the first battery-powered electric car model. The factory has a capacity of 250,000 vehicles per year and the brand is focusing on battery electric vehicles with 9 seats or less and electric buses with 24 seats or more. Also according to the Ministry of Finance’s assessment, the biggest obstacle facing Vietnam today is the lack of charging station infrastructure, the main source of power for power supply is using fuel sources with high CO2 emissions, accounting for nearly half of the total mobilized electricity output, while the electricity generated from renewable energy accounts for a small proportion, about 4.3% and this is considered an unstable power source.

At a meeting with leaders of the Government, ministries and sectors in mid-May, Vingroup applied for a pilot exemption of excise tax and registration fee for electric cars for 5 years in order to promote the electric vehicle market. . In fact, this is the first proposal in Vietnam but not new in the world. Many countries have also applied a combination of supportive policies, strong incentives for consumers and manufacturers to encourage the model transition from gasoline to electricity, typically China, the US and other countries. Europe. According to the Wall Street Journal, Mr. Hallgeir Langeland, 65, a former Norwegian politician and environmental activist, has not owned a car in 25 years. But when Ford launched an all-electric version of the Mustang last year, he didn’t hesitate. “I have to have it. I can’t wait until March,” Mr. Langeland said, recalling the Mustang he drove as a young man. Christian Burg, owner of an energy-efficient housing construction business in Germany, has been driving a petrol BMW X3 SUV for many years. When the German government increased subsidies for electric cars, he applied for a small business subsidy and switched to the iX3 rechargeable hybrid. “We received an incentive of 3,750 euros ($4,500),” he revealed. Governments are tightening emissions standards and supporting industries on the front lines of the fight against climate change. Photo: Reuters. From electric vehicle powerhouses China and Europe… Governments around the globe have introduced a variety of policies to boost the electric vehicle industry over the years, including reducing taxes, fees, subsidies, incentives, and administrative regulations. The common point is that governments have set a specific roadmap to transition from fossil fuel vehicles to electric cars. According to the CNBC Many Chinese drivers switch to electric cars because of the government’s preferential policies. For example, in 2016, Chinese buyers received a nationwide discount of 55,000 yuan ($8,599.01) for each BEV and 30,000 yuan ($4,690) for PHEVs. Municipal governments also provide additional support up to 55,000 yuan. Beijing also subsidizes electric vehicle manufacturers based on battery power density, driving range and energy consumption. For example, in 2020, a pure electric vehicle with a minimum range of 300 km will receive a subsidy of 16,200-22,500 yuan (2,532-3,517 USD). Along with that, it supports the construction of a battery charging network for electric vehicles. For taxes and fees, China offers 50-100% reduction in user registration fees from time to time, annual tax relief, free or low-cost charging. In addition, manufacturers will receive credit points if they produce many electric vehicles. China is the leading electric vehicle market in the world. Photo: Reuters. Buyers of electric vehicles in China also receive preferential registration fees, no need to wait for car registration for 6-12 months, free highways, and parking. In Shenzhen alone, taxis switching to electric vehicles will be able to receive subsidies. A 27-year-old customer, who lives in Hangzhou, has been waiting almost a year for a license plate for his petrol car. However, after seeing Xpeng’s G3 electric car, she decided not to wait any longer. “After applying the government subsidy, the car fits my budget of about 180,000 yuan (US$27,643),” she said. The European Union (EU) is also gradually tightening emissions standards and supporting industries on the front lines in the fight against climate change. Much of the support goes to initiatives that push consumers to buy electric vehicles, which in turn drives demand. After applying the government subsidy, the car fits my budget of about 180,000 yuan (US$27,643) A 27-year-old customer in Hangzhou In 2020, sales of new electric vehicles in European countries doubled, accounting for 43% of global sales. Rising momentum has brought the EU over China to become the world’s largest electric vehicle market. For example, Germany subsidizes up to 4,000 euros ($4,874) per BEV and 3,000 euros ($3,656) for PHEVs. The country also built a €1 billion fund for rebates and building charging stations. Meanwhile, France subsidizes 6,000 euros ($7,312) for cars that emit less than 20g of CO2, 5,000 euros ($6,093) per BEV, and nearly 10,000 euros ($12,187.01) for customers who switch from diesel vehicles to BEVs. Similar to France and Germany, Spain, Italy, Sweden, Denmark and Finland also apply different subsidies to electric vehicle customers. Denmark alone reduces sales tax up to 80%. Some major Spanish cities reduce taxes by 75%, while Finland has a minimum tax rate. …to North America Transportation is currently America’s largest source of greenhouse gas emissions. Therefore, US President Joe Biden’s plan to change gasoline cars to electric cars is essential to solving the problems of climate change. Biden’s proposals include incentives of up to $174 billion for electric cars. His plan is to increase discounts for customers who buy electric cars. In addition, the US president plans to push to increase the number of public chargers from 72,000 in 2019 to 500,000 in 2030. He also called for replacing the US government’s fleet of about 650,000 vehicles with models. electricity. Experts of Bloomberg It is estimated that 500,000 chargers may require about 6 billion USD of investment. Part of the $174 billion subsidy will also go directly to consumers to stimulate demand. Along with that are orders for electric vehicles directly from the federal government. To realize his climate ambitions, Mr. Biden needs to benefit as many electric vehicle manufacturers as possible. Bloomberg The above expenses all bring about the same effect. That’s increasing demand to accelerate the electrification of the US auto industry. Previously, the federal government and some states offered tax credits (up to $7,500) and incentives for buying electric vehicles, but the main federal incentive will begin to cut after manufacturers sold 200,000 electric cars. “To realize his climate ambitions, Mr. Biden needs to benefit as many electric vehicle manufacturers as possible.” Bloomberg comment. Meanwhile, the Canadian government requires that all vehicles sold starting in 2040 will produce zero emissions. The province of Québec will ban the sale of new gasoline-powered passenger cars from 2035. British Columbia will completely ban the sale or rental of gasoline-powered cars and trucks by 2040. Norway also introduced subsidy programs to boost sales of electric vehicles, including direct support of 4,000 euros ($4,874) to users, a 50% subsidy on vehicle prices and the cost of station construction and installation. charger for the manufacturer. A plan to change petrol cars to electric cars is necessary to address climate problems. Photo: Reuters. Along with that is a discount on fast charging service, free parking, fees for ships, boats, harbors, and the use of bus lanes; some road and ferry fees are waived. Taxes exempted for electric vehicles in Norway include fuel, road, and vehicle taxes. Meanwhile, Japan also exempts taxes related to vehicle ownership, purchase and tonnage. In 2020, electric car buyers will receive a subsidy of up to $7,700 depending on the vehicle’s battery capacity. According to Dr. Bui Quang Tuan, Director of the Vietnam Institute of Economics, government support is essential if Vietnam wants to develop the electric car industry to catch up with the world’s trends and achieve its goals. on green growth. “The support policy demonstrates the tectonic role of the State, its commitment to accompany businesses so that they can grow up, reach out to the world, and raise the level of Vietnamese people. Behind this policy is a very important political meaning, not just economic support,” said Dr. Bui Quang Tuan, Director of the Vietnam Institute of Economics.