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Transport Ministry proposes incentives for EVs producers, users



The Ministry of Transport has just submitted its proposal to Deputy Prime Minister Tran Hong Ha on incentives for electrical vehicle (EV) producers and users.

Transport Ministry proposes incentives for EVs producers, users hinh anh 1A model of electric car by VinFast. (Photo: VNA)

Hanoi – The Ministry of Transport has just
submitted its proposal to Deputy Prime Minister Tran Hong Ha on incentives for
electrical vehicle (EV) producers and users.

According to the ministry, Vietnam’s policies to encourage the
use of EVs now only focus on battery EVs (BEVs) with incentives relating to
special consumption tax and registration fees.

Under its proposal, the ministry suggested three types of EVs to
receive incentives including battery EVs, Fuel cell electric vehicles (FCEVs)
which are powered by hydrogen, and solar EVs.

The ministry proposed to add EV manufacturing and assembling
industries, and battery production to the list of industries that receive
special investment incentives. It also proposed an exemption and reduction of
import tax on equipment, production lines, and import of complete components
and components for the production and assembly of EVs and batteries.

For EV manufacturing, assembly, and maintenance companies, the
ministry asked for a preferential mechanism that helps them access financial
sources. At the same time, a tax incentive mechanism is also needed for
imported EVs.

Notably, according to the ministry, many businesses have
proposed the continued application of the special consumption tax incentive of 3% for EVs
with 9 seats or less after February 28, 2027, for domestically produced and
assembled EVs. The companies also asked for VAT exemptions for the first five
years and a reduction of 50% for the five following years.

The registration fee for EVs is exempted for the first five
years from March 1, 2022. In the next two years from March 1, 2027, the first
registration fee is 50% of the fee for petrol and diesel cars with the same
number of seats.

It was also proposed that EV buyers receive an incentive totaling 1,000 USD per vehicle purchase.

Meanwhile, company exemptions could include import tax
on components and equipment for the installation of electric charging stations
and an exemption from land tax for the first five years, a reduction of 50% in the
next five years, a corporate income tax exemption for the first five years and
50% reduction for the next five years.

According to the Transport Ministry,  Vietnam has only two EV
producers and assemblers – Vinfast (belonging to Vingroup) and TMT
Automobile Joint Stock Company.

Until now, the Thanh Cong Group Joint Stock Company and Truong Hai
Automobile Joint Stock Company have also introduced electric car models to
explore the market and eyed domestic production and assembly.

The number of EVs in Vietnam has increased rapidly in recent
years. From 2018 to 2021, there were only 167 vehicles. By July 2023, the
number increased to nearly 12,600. However, they are mainly passenger cars and
city buses.

Regarding the electric charging station system, VinFast has
developed a system of charging stations with more than 150,000 charging ports
for electric motorcycles and electric cars in all 63 provinces and cities. As
of October 14, 2022, VinFast had installed 1,560 charging stations nationwide.

Currently, Vinfast is providing the market with four types of
electric cars. A car with batteries has prices ranging from 538 million VND to
more than 2 billion VND, the versions without batteries are from 458 million
VND to nearly 1.7 billion VND.

To realise Vietnam’s commitment to achieve net-zero carbon
emissions by 2050, the Prime Minister approved an action programme on green
energy transformation, reducing carbon and methane emissions in the transport

According to the programme, between 2022 and 2030, Vietnam will
promote the production, assembly, import, and use of electric motorized
road vehicles, along with charging infrastructure. It is expected that from 2025, all new buses on
roads will use electricity and green energy.

From 2030, all new taxis will use electricity and green energy.
By 2050, all road motorized vehicles and construction vehicles participating
in traffic will be converted to electricity and green energy. Vietnam aims to
complete charging infrastructure to sufficiently provide green energy to meet
the demand of people and businesses nationwide./.



Emerging trends expected to power Vietnam’s tourism boom: study



Several ongoing trends in the Vietnamese tourism sector have contributed to its strong recovery in the wake of the global COVID-19 pandemic, with the increasing travel demands of Gen Z and families with kids as significant contributors, according to the Visa Global Travel Intentions Study (GTI) 2023.

Vietnam, with its stunning landscapes and diverse cultural heritage sites, has become a popular destination for travelers from around the world.

According to the study, it is vital for both travelers and industry stakeholders to understand new trends in Vietnamese tourism following the pandemic.

In terms of leisure trips, families with kids and ‘Silvers’ – individuals older than 60 – made an average of 2.4 trips over the past 12 months, more than any other market segments, according to the GTI 2023.

Besides ticking visiting landmarks, Vietnamese tourists are now placing a strong emphasis on leisure-focused and experiential journeys.

Relaxation was the main driver of travel, followed by shopping and exploration.

As the country blossoms into a playground for adventure seekers and culture enthusiasts, tourists are opting for personalized experiences that enable them to immerse themselves in local customs, traditions, and cuisine.

Environmental awareness was also a primary catalyst for travel over the past year. As such, Vietnamese travelers demonstrated remarkable interest and action in sustainable travel.

Up to 73 percent of those surveyed said they were either interested or very interested in sustainable travel options, while half had actively looked for these options when planning trips.

With an increasing number of travelers seeking eco-conscious options, the tourism sector is witnessing a shift toward greener travel practices, more support for local communities, and the preservation of natural resources.

Given the country’s growing middle class and their increasing disposable income, Vietnamese travelers are embarking on more domestic and international trips and they seek unforgettable experiences and bonding opportunities.

About one-fifth of the respondents said visiting and connecting with friends or families would be a key motivation for travel in the next year.

Shopping has also become an integral part of the Vietnamese travel experience, with many Vietnamese travelers seeking out unique souvenirs and indulging in retail therapy as part of their journeys.

Sustainable tourism is increasingly preferable for Vietnamese travelers

Sustainable tourism is increasingly preferable for Vietnamese travelers.

Amid the strong development of digital technology, Vietnamese tourists prefer seamless transactions and optimal security measures.

The digital revolution is transforming payment methods, and Vietnamese travelers have embraced the convenience of credit, debit, and pre-paid cards.

Almost all Vietnamese respondents in the GTI 2023 indicated that they intended to use these cashless payment options during their journeys, streamlining transactions and enhancing their overall travel experiences.

Accordingly, 64 percent of the Vietnamese respondents said they brought their digital wallets along with them for their travels.

Thus, the incorporation of cashless payment solutions has become a pivotal pillar in travel, fostering convenience, security, and efficiency for travelers while contributing to the industry’s overall vitality.

“Vietnam’s tourism is entering a new era where the role of digital payments will advance side by side with the industry as customers demand more efficient and secure payment services,” said Dang Tuyet Dung, Visa country manager for Vietnam and Laos.

“Adapting swiftly, hotels, restaurants, and tour operators must cater to evolving traveler needs, supported by the growing use of cashless payment methods for added convenience.”

Amid the global recovery from COVID-19, Vietnam’s tourism sector is rebounding. Domestic tourism has been pivotal, with locals exploring their own country, bolstering local businesses and jobs.

Vietnam welcomed over 7.8 million foreign visitors between January and August this year, meeting 98 percent of its full-year target of eight million international tourist arrivals.

The tourism sector also served 86 million domestic tourist arrivals in the eight-month period, according to the General Statistics Office.

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Zhejiang Trade Exhibition opens in Hanoi



The 2023 Zhejiang International Trade Exhibition and the 11th Zhejiang Export Fair, the largest and oldest expo independently held by China’s Zhejiang authority in ASEAN, opened at the Hanoi International Convention Centre on September 28.

Zhejiang Trade Exhibition opens in Hanoi hinh anh 1At the opening ceremony of the exhibition (Photo: VNA)

Hanoi – The 2023 Zhejiang International Trade Exhibition
and the 11th Zhejiang Export Fair, the largest and oldest expo independently
held by China’s Zhejiang authority in ASEAN, opened at the Hanoi International
Convention Centre on September 28.

The 4,000sq.m expo features 120 booths, displaying
products in hardware and machinery, textiles and inputs, interior and exterior
furniture, electronics and household appliances.

The three-day event is hosted by the Department of Commerce of Zhejiang province, and co-organised by Zhejiang Yuanda International Exhibition Co Ltd and
the Vietnam National Trade Fair and Advertising Company (VINEXAD).

Deputy Director of the Asia-Africa Market Development under the Ministry of
Industry and Trade  (MoIT) To Ngoc Son
said this is the 11th year the two sides have coordinated to
organise the trade promotion activity which marks the full recovery of economic
and trade exchanges between the two nations after three years of hiatus due to COVID-19.

Zhejiang Trade Exhibition opens in Hanoi hinh anh 2Deputy Director of the Asia-Africa Market Development To Ngoc Son speaks at the opening ceremony. (Photo: VNA)

The event is expected to create more cooperation opportunities for businesses
from both nations in the context that the global economy is facing a gloomy outlook,
he said, adding Zhejiang province – an important gateway in China’s eastern
region has an important role to play in the Vietnam – China trade, with Vietnam
– Zhejiang trade revenue accounting for 10% of the total trade between
the two nations in 2022.

Launched in 2011, the expo has been a platform not only for product exhibition
and promotion but also for Vietnam and China to strengthen economic and cultural
exchanges and multifaceted cooperation between their localities.

Last year, Zhejiang’s exports
to Vietnam reached 14.5 billion USD, an increase of 17.99%, while imports were 6
billion USD, up 14.21% over the same period last year.

The exhibition will run until September 30./.


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Vietnam’s nine-month economic growth reported at 4.24% YoY

The country’s GDP grew by 4.24% in the first 9 months, exceeding the growth rate of 2.19% and 1.57% in 2020 and 2021, according to data from the General Statistics Office.



The results suggest that the economy is experiencing a notable upswing, potentially due to favorable economic politics or external factors.

The gross domestic product in the July-September quarter was estimated to increase by 5.33% from a year earlier, faster than the growth rate of 4.05% in the second quarter.

The recent growth registered in the country’s economy is a positive sign, indicating a continued recovery from the pandemic-induced downturn. Despite a slight decrease in growth compared to the same period last year, the economy remains stable and may continue to grow in the coming months.

In September, the consumer price index increased by 3.66% compared to the same period last year. The average value recorded in the third quarter of 2023 grew by 2.89% compared to the third quarter of 2022.

In the reviewed period, the total import and export turnover of goods reached $497.66 billion, down 11% over the same period last year. Of which export value hit $259.67 billion, down by 8.2%, while import value hit $237.99 billion, down 13.8%.

With regard to trade balance, the country posted a trade surplus of $2.29 billion in September and $21.68 billion during the nine months.

Industrial production in September increased by 5.1% year on year, up 0.1% from the previous month, while the January-September period showed an increase of 0.3% from the previous year.

In addition, the total retail sales and consumer service revenue in the first 9 months of 2023 is estimated to reach VND 4,567.8 trillion, an increase of 9.7% year on year (the same period in 2022 increased 20.9%). 


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