Development of electric vehicles: Vietnam needs to formulate policies soon

It is necessary to soon have policies to consider reducing import tax on components for electric vehicles, supporting related infrastructure such as land allocation, land use tax exemption and reduction for automobile factories, etc. Many countries support the development of electric vehicles.

Currently, the strong socio-economic development is leading to an increase in the number of vehicles, especially cars using combustion engines, which is contributing to several problems related to environmental pollution as well as energy demand. However, the trend of electrification is being applied more and more on vehicles, leading to the creation of Hybrid and electric vehicles, which is considered as the "savior" of humanity in the future.

Encouraging people to switch to low-emission vehicles such as electric cars, electric motorbikes, electric buses, trams, etc. is one of the effective solutions to reduce environmental risks. Some countries already have a roadmap to stop the circulation of petrol cars in the next decade and replace them with electric cars.

Therefore, many countries around the world have issued a series of special support policies to encourage car manufacturers to strongly develop electric vehicles to gradually replace petrol cars.

For example, Thailand has issued incentives to promote electric vehicle production and the supply chain such as three-year tax exemptions for plug-in hybrid vehicle manufacturers, eight-year corporate income tax exemption for battery electric vehicle manufacturers.

China has invested at least 60 billion dollars to support the electric car industry. The country is also pushing an ambitious plan to transition to all-electric or hybrid cars by 2035.

In particular, electric car buyers in Europe and the US are supported by the government with 5,000-12,000 euros/car for the purpose of protecting the environment.

South Korea provides a one-time subsidy of 14 million Won, reduces taxes, insurance fees, highway usage fees and parking fees for electric vehicle owners. China subsidizes the price of 20,000-40,000 Yuan depending on the type of electric vehicle, while planning and investing in a nationwide power supply infrastructure network. In addition, each locality has its own incentives, for example, the city of Shanghai is free to issue license plates for electric cars, etc.

Developing electric cars in Vietnam needs many supportive policies

Vietnamese car company VinFast got off to a strong start when launching the first electric car and quickly attracted customers’ attention. Looking at the moves of countries and major car manufacturers in the world, it is easy to see that the young Vietnamese electric car company will face many competitive pressures.

In Vietnam, the electric vehicle market in general and VinFast in particular have many opportunities for development when the demand for buying cars is increasing. However, in order for the electric vehicle market in Vietnam to develop sustainably, besides technology issues, many other issues need to be taken care of such as infrastructure for power supply system, charging station, battery waste disposal, etc.

It is even necessary to apply policies to encourage the electric car market such as reducing or freeing tolls and roads, or supporting taxes and fees. The reason is that using electric vehicles will be beneficial to the environment, helping to improve air quality, especially in big cities.

For users, specific support policies make it easy for them to own, use and gradually create the habit of riding electric cars. Countries that develop electric vehicles must have very specific and strong market-making strategies and policies.

For manufacturers and businesses, the Government can consider reducing import tax on components for electric vehicles, supporting related infrastructure such as land allocation, exemption and reduction of land use tax for factories producing automobiles or ancillary products as well as charging station systems.

Next, it is difficult to ask the Vietnamese Government to directly subsidize electric car buyers like the above countries because of limited budgets, but to support part of costs for vehicle owners such as reducing part or all of the registration fee, excise tax, reducing part or all of the road use fee, etc. is completely feasible.

In the near future, the auto market may be more active with the participation of foreign electric car models. But regardless of the brand, what manufacturers and users are all waiting for is a system of appropriate support policies to gradually form and develop a stable and sustainable market for electric cars in Vietnam.

Therefore, the orientation of the Party and the State to encourage the development of electric cars in particular and environmentally friendly vehicles in general needs to be concretized by clear and transparent policies and legal regulations, so that people can use electric vehicles with peace of mind, and electric car manufacturing and trading businesses can feel secure to develop.

Source : Autobikes