Vietnam plans to extend the tax incentives for electric cars until 2030.

The Office of the Vietnamese National Assembly announced over the weekend that in order to boost electric vehicle sales and reduce carbon emissions, Vietnam plans to extend the special consumption tax exemption policy for electric vehicles by nearly 4 years, until the end of 2030. The Office cited a report from the Ministry of Finance in the announcement, stating that the government will submit a proposal to extend the tax break to the National Assembly for review. Vietnam reduced the special consumption tax on electric vehicles in March 2022, with the tax rate decreasing from 4%-11% to 1%-3%. The original tax exemption policy was set to expire in February 2027. Data shows that thanks to the tax break, annual sales of electric vehicles in Vietnam surged from nearly 7,000 in 2022 to nearly 175,000 last year.