Special consumption tax

While the policy reflects Vietnam’s intent to strengthen trade relations with the US, the real impact on car prices will be modest partly because import tariffs are just one part of the vehicle's cost.

The Ministry of Finance (MoF) has proposed a 2% reduction in value-added tax (VAT) from July 1, 2025 to December 31, 2026, expanding eligibility to include fuel, petroleum, and certain technology products and services. Experts have believed the measure will stimulate consumption, support businesses, and drive economic growth.

The Ministry of Finance has proposed to increase the special consumption tax (SCT) on a number of items harmful to health including tobacco, beer, and alcoholic products to limit imports, production and consumption.

The Government has issued Decree No.104/2021/ND-CP on the extension of the deadline for special consumption tax payment on domestically-manufactured or assembled automobiles.