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Official Gazette

Friday, January 24, 2020

New incentives for domestic automobile industry

Updated: 07:45’ - 19/02/2016
From February 4, domestic enterprises’ investment projects to manufacture automobile parts or assemble automobiles and special-use vehicles will be given access to loans from the Vietnam Development Bank under the regulations on the State’s development investment loans.

Domestic enterprises’ investment projects to manufacture automobile parts will be given access to loans from the Vietnam Development Bank__Photo: Internet

Under Prime Minister Decision No. 229/QD-TTg dated February 4, on mechanisms and policies to implement the strategy and master plan on Vietnam’s automobile industry development through 2025, with a vision toward 2035, domestic suppliers joining in the global supply chain in manufacture and export of automobile parts and automobiles in complete units will enjoy the export credit policies under current regulations.

Those manufacturing automobiles of priority, including trucks and passenger cars with 10 seats or more, passenger cars with up to nine seats and special-use vehicles, will be supported in trade promotion activities under the National Trade Promotion Program.

Agencies, organizations and individuals that purchase small (under 3 tons) multifunctional vans for use in agriculture and rural areas will receive support under Prime Minister Decision No. 68/2013/QD-TTg dated November 14, 2013.

Other tax and land incentives will also be given to the automobile industry.

Specifically, enterprises importing goods to create fixed assets for automobile part manufacturing projects, or automobile manufacturing or assembling projects in industrial parks, economic zones or hi-tech parks will enjoy import duty incentives under the laws on investment and import duty and export duty.

Large-scale projects that annually manufacture or assemble over 50,000 automobiles of priority, or manufacture engine parts, gearboxes and gear assemblies will be entitled to corporate income tax or land rental incentives on a case-by-case basis.

These mechanisms and policies will be uniformly implemented for at least 10 years.- (VLLF)

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