An artist's illustration of an electric car produced by VinFast,
a unit of conglomerate Vingroup. Photo by VinFast. 

Two ministries have voiced support for tax incentives for electric vehicles that dovetails with the government’s goal of reducing emissions. 

Deputy Minister of Industry and Trade Do Thang Hai said his ministry could consider scrapping special consumption tax and registration fees on EVs for five years.

This will promote the purchase of environment-friendly vehicles and reduce emissions as targeted by the government.

The Ministry of Transport has also voiced support for incentives.

Special consumption tax on nine-seat electric cars is now at 15 percent after a 10-percentage-point cut in July 2016.

Registration fees are 10-12 percent depending on locality.

Last month, Vietnam’s largest conglomerate, Vingroup, called for incentives related to taxes and fees as it prepares to sell EVs this year.

The Ministry of Finance has not said yet if it supports the tax cuts, but deputy finance minister Vu Thi Mai said the incentives require changing laws by the National Assembly.

The ministry is soliciting opinions from businesses and plans to submit them and Vingroup’s proposal to the government in October.

Some countries have incentives for EVs. Buyers in South Korea receive a $2,000 rebate on personal income tax and a $1,400 rebate on car buying tax.

China has scrapped consumption tax and cut registration fees by half.

Thailand and Indonesia have several incentives for five years to encourage purchase of EVs.

The Vietnamese government has concerns about the source of energy for EVs.

The finance ministry has pointed out that thermal energy with high carbon emissions account for nearly half of the country’s total electricity production.

Renewable energy accounts for only 4.3 percent yet, it added.