Car registration fee cut by half again

A government decree has cut registration fees for locally made cars by 50 percent for six months starting December 1.

This is the second time in the last two years such a cut is being made to mitigate the difficulties faced by the auto industry due to the Covid-19 pandemic.

In the first six months of last year, 17,600 cars were bought on average each month. In the second half, when the 50 percent cut took effect, sales doubled.

The registration fees are calculated based on car prices in each locality.

The rates are 12 percent in Hanoi and Hai Phong, and 10 percent in HCMC.

Last year, car sales had fallen by 8 percent to 296,634 units as the Covid-19 pandemic badly affected the economy, hitting people’s incomes and discretionary spending.