MoT takes the wheel in EV promotion

Two weeks ago, the ministry (MoT) initiated a consultation process on a report outlining proposed policies for the transition to electric and green-energy vehicles in Vietnam. Deputy Minister of Transport Nguyen Duy Lam said, “We will continue to compile and refine these proposals and report to the government in the third quarter of this year.”

Several companies are getting in on the action to develop EV charging infrastructure, photo Le Toan

On August 10, Deputy Prime Minister Tran Hong Ha directed the MoT to collaborate with relevant ministries and local authorities to further review mechanisms and preferential policies. These efforts aim to support production and import activities, encourage the use of green energy vehicles, and submit a report by September 15.

The report proposes several main policy groups. Firstly, to encourage production, assembly, and import activities, the MoT recommends raising emission standards and limiting fuel consumption to reduce reliance on fossil fuel vehicles and promote zero-emission vehicles.

Additionally, the ministry suggests adding electric vehicles (EV) and battery manufacturing and assembly to the list of sectors eligible for special investment incentives. This could include exemptions and reductions in land rent, taxes, and fees for projects expanding into this industry.

To encourage and support consumers, the MoT proposes implementing emission fees for fossil fuel vehicles and establishing zero-emission zones in urban centres, where only zero-emission vehicles would be allowed.

The report also recommends offering subsidies of around $1,000 for EV purchases to encourage consumer adoption. EV users would receive priority in urban areas, including access to preferred parking and reduced fees during peak hours.

For the development of electric charging infrastructure, the MoT proposes the swift issuance of Vietnamese standards for electric charging stations, aligned with international trends.

To prevent monopolies in the charging station sector, the MoT plans to develop regulations governing the operation and sharing of charging stations or green energy supply stations for EVs.

Moreover, to expedite the expansion of charging infrastructure, the government is considering regulations that would integrate charging stations into urban technical infrastructure and residential areas. Public charging stations would be required at bus stations, rest stops, urban centres, car parks, shopping centres, hotels, offices, apartments, and restaurants.

Developers would be exempt from construction permits and investment policy adjustments when installing charging stations. For existing properties, land use purposes would not need to be altered to accommodate charging station installations, according to the MoT.

The incentives would apply to battery-powered cars, fuel cell EVs, and solar-powered vehicles.

The MoT acknowledged that while Vietnam has implemented preferential policies to promote EV adoption, the transition has lagged global trends and remains slow compared to some regional countries.

“The policies outlined in this report aim to boost investment, production, and technological advancements, accelerating the domestic adoption of EVs,” said Lam.

Supporting a green strategy for the automotive industry With 6.5 million cars and 74 million motorcycles, Vietnam is the second-largest emitter of greenhouse gases (GHGs) from road transport in Southeast Asia, following Indonesia. Emissions from road vehicles in the country are rising rapidly, with an average annual increase of about 15 per cent over the past decade.

EV strategy must prioritise keeping the pace globally Under Vietnam’s vehicle industry development strategy, electric vehicles (EVs) require robust support from government policies to contribute effectively to the country’s net-zero commitment.

Proposals looked at to change registration fees for certain EVs The Ministry of Finance has proposed a decree that offers high registration fee incentives for electric vehicles (EVs), such as a 3-year exemption from registration fees, followed by a 50 per cent reduction for the next two years.