TAX RESCHEDULING PROPOSED TO SUPPORT LOCAL AUTOMOBILE INDUSTRY

The Ministry of Finance (MoF) has proposed rescheduling excise tax payments for local automobile manufactures and assemblers. The draft decree recommends that payments over VNĐ4.4 trillion (US$191 million) for October and November be delayed until late December.

Under the draft decree the payment deadline of the October excise tax, or special consumption tax, for domestically manufactured or assembled cars will be extended to December 20, while the November deadline will be extended to December 30, according to the MoF.

The draft decree was set up following the results of Decree No 109, which allowed local auto firms to enjoy excise tax payment extensions in 2020 to provide support for enterprises impacted by the COVID-19 pandemic.

To be entitled to the extension, local automotive firms will have to submit online or written applications for extensions to tax agencies when making excise tax declarations, in line with current regulations.

If the application is not submitted while making tax declarations, the firms will have to submit the applications before December 15.

If automotive firms, who were not subject to the incentive during the extension period, are found to have obtained an extension, they will have to fully pay their excise taxes and delayed amounts.

After the extension period, if tax agencies discover firms who are not subject to the incentive but still hold an extension, they will have to pay fines on top of fully paying their excise taxes and delayed amounts.

Most of the relevant ministries and agencies agree with the MoF's draft decree.

The Ministry of Foreign Affairs has agreed that it is essential to support businesses in overcoming the difficulties of the COVID-19 pandemic. By doing so, local automobile manufacturers and assemblers, as well as automobile joint-venture car makers and assemblers in Việt Nam, will benefit from the decree. This will allow them to gather more capital to maintain and expand their production.

The Việt Nam Chamber of Commerce and Industry (VCCI) has also come to a consensus on the extension policy to support businesses, as proposed by the Ministry of Finance. VCCI recognises that local automobile assemblers and manufacturers have played an important role in the country’s economic development. The manufacturers and assemblers have made great contributions to the State budget through the collection of all kinds of taxes and fees, as well as creating jobs for hundreds of thousands of people.

Successfully maintaining a domestic automobile industry will also be an opportunity to transfer advanced technologies to the local auto industry.

Source: VNS

Related News

VIETNAM ECONOMY INVESTMENT

AGRICULTURAL, FORESTRY AND FISHERY EXPORTS REACH NEARLY $49.3 BILLION AFTER EIGHT MONTHS

Asia remained Việt Nam’s largest export market, accounting for 45.5 per cent of total market share, with exports to the region increasing 11.3 per cent year on year. Việt Nam’s agricultural, forestry and fishery exports totaled nearly US$49.3 billion in the first eight months of this year, up 7 per cent year on year, maintaining growth momentum despite divergent trends among major product groups.

Sep 09, 2026

BANKING / FINANCE / INSURANCE / TAX

BANK DEPOSITS OVERTAKE CREDIT GROWTH IN LATE AUGUST

Vietnamese đồng deposits at banks grew faster than credit by late August, reversing a trend seen earlier this year and easing some short-term liquidity pressure, although banks continue to face high funding costs amid strong demand for loans. Speaking at the Government’s regular meeting, Trần Quốc Phương, deputy minister of finance, said that as of August 22, Vietnamese đồng deposits at credit institutions had increased 8.77 per cent from the beginning of the year, slightly exceeding the 8.38 per cent growth in Vietnamese đồng lending.

Sep 09, 2026

VIETNAM ECONOMY INVESTMENT

FOREIGN CAPITAL SEEKS STRONGER FOOTHOLD IN VIỆT NAM THROUGH M&A

Foreign investors carried out 1,815 capital contribution and share purchase transactions in Việt Nam in the first seven months of 2026, with total capital exceeding $6.5 billion. While the number of transactions fell 8.4 per cent year-on-year, their value rose 61.6 per cent. Rather than investing from scratch to build new production facilities, many foreign investors are choosing to acquire stakes in existing Vietnamese companies as a faster way to establish a foothold in the market.

Sep 09, 2026

GARMENT / TEXTILE

MANUFACTURING PRODUCTION RISES AT FASTEST PACE IN JUST OVER TWO YEARS

Growth in the Vietnamese manufacturing sector continued to strengthen midway through the third quarter of the year. The S&P Global Vietnam Manufacturing Purchasing Managers' Index (PMI) posted 53.3 points in August, up from 52.9 points in July and above the 50.0 no-change mark for the fourteenth consecutive month. The latest strengthening of business conditions in the sector, as revealed on September 3, was the most pronounced since February.

Sep 09, 2026

TECHNOLOGY

TECHNOLOGY, INNOVATION DRIVE CHEMICAL INDUSTRY TOWARDS HIGHER-VALUE GROWTH

Technological innovation, automation and digital transformation are becoming central to the chemical industry as companies seek to move towards higher-value products, strengthen domestic technological capabilities and pursue greener, more sustainable production. The shift is being accelerated by Politburo Resolution No. 57-NQ/TW on breakthroughs in science, technology, innovation and national digital transformation, alongside Việt Nam's chemical industry development strategy to 2030 with a vision to 2040.

Sep 09, 2026

VIETNAM ECONOMY INVESTMENT

FDI INFLOWS RISE 55.4 PER CENT ON YEAR

According to the Foreign Investment Agency under the Ministry of Finance, total foreign direct investment (FDI) registered in Vietnam reached $40.63 billion as of August 31, up 55.4 per cent year-on-year. All three components – newly registered capital, additional capital injected into existing projects, and foreign investors’ capital contributions and share purchases – recorded increases.

Sep 09, 2026