Illustration photo

Accordingly, the new decision regulates mechanisms and policies to implement the Viet Nam’s Automobile Industry Development Strategy through 2025 with a vision toward 2035 and the Viet Nam’s Automobile’s Industry Development Master Plan through 2020 with a vision toward 2030.

The aforesaid policies and mechanisms will be effective at least ten years with a view to boosting the domestic automobile industry.

Incentives in credit, demand stimulation, and market development

Projects producing automobile spare parts and assembling complete cars will be able to access capital from the Viet Nam Development Bank.

Domestic enterprises joining the global chains in production and exports of spare parts and automobiles will enjoy export credit policies in accordance with the current regulations.

Enterprises which produce automobiles of priority will be supported in trade promotion in line with the National Trade Promotion Program.

Tax and land preferences

The new decision also regulates in details preferential policies on tax and land.

Benefiting from tax and land preferences are imports for spare part producing projects; automobile production projects in industrial parks, economic zones, as well as high-tech areas.

Under Decision No. 1168/QD-TTg, dated July 16, 2014 on the Strategy for Viet Nam’s automobile industry development through 2025, with a vision toward 2035, Viet Nam prioritizes the manufacture of trucks and passenger cars of 10 seats or more, passenger cars of up to 9 seats and special-use vehicles.

By 2020, 2025 and 2035, the support industries will meet 35 and over 65% of the demand for local content, respectively. The strategy also targets the export of around 20,000 locally made cars by 2020; 37,000 by 2025; and 90,000 by 2035./.

By Huong Giang