Vietnam is planning to extend its electric vehicle (EV) tax incentives through 2030 as part of a broader push to accelerate clean mobility and cut emissions. The proposal, which will be submitted to parliament, seeks to prolong the reduced special consumption tax currently applied to EVs.
The country had earlier slashed EV tax rates in March 2022 from 4–11% to a much lower 1–3%, with the policy initially set to expire in February 2027. This move has already delivered strong results, with EV sales jumping from around 7,000 units in 2022 to nearly 175,000 units last year.
Government estimates suggest that each EV can reduce carbon dioxide emissions by about 0.85 metric tons annually compared to conventional internal combustion engine vehicles, supporting the nation’s goal of achieving net-zero emissions by 2050.
Officials believe that extending these incentives will further drive EV adoption, particularly in urban areas, helping to improve air quality and reduce pollution. In addition to tax cuts, Vietnam has also extended exemptions on first-time EV registration fees until February 2027, reinforcing its commitment to sustainable transportation.
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