The proposal was made by the Vietnam Automobile Manufacturers Association (VAMA), seeking support for manufacturers amid the Covid-19 pandemic.

However, the Ministry of Finance said that the government had already implemented different measures to support businesses and citizens last year, including extending the deadline for payment of taxes and land use fees and incentives on special consumption tax for cars manufactured or assembled locally.

"After reviewing the proposal, the Ministry of Finance sees that lowering registration fee is not suitable with the current setting," it said.

Last year, the government had provided a 50 percent discount on the registration fees for cars produced domestically.

The move lowered the government’s revenues by VND6 trillion ($260 million).

The Ministry of Finance also denied VAMA’s request to lower the production of cars under an import tax incentive program.