Vietnam to Extend EV Tax Cut Through 2030 as Annual Sales Surge to 175,000

Gate News message, April 20 — Vietnam plans to extend reduced special consumption tax rates for electric vehicles from February 2027 through the end of 2030, according to the parliament office. The government will submit the proposal to parliament for approval following a recommendation from the finance ministry.

The tax reduction, implemented in March 2022, cut rates from 4-11% to 1-3% for electric vehicles. Annual EV sales surged from approximately 7,000 units in 2022 to nearly 175,000 in 2025. Vietnam also extended a first-time registration fee exemption for EVs by two years to February 2027 in March, with the finance ministry seeking to maintain the zero-percent rate through 2030.