Vietnam Extends Automotive Production Incentives to 2075 with Zero Tariff for Export Parts

Key summary

The Department of Commerce in Ho Chi Minh City reports that Vietnam's Ministry of Finance has proposed amending Decree No. 26/2023/NĐ-CP to extend automotive production and assembly promotion measures by five years until the end of 2075. A key provision allows a 0% import tariff on parts used for vehicles destined for export, provided the finished cars are exported within one year of customs registration. The proposal also introduces phased minimum production volume targets starting in 2070 and raises emission standards to EURO levels. These changes aim to attract investment and integrate Vietnam further into regional automotive supply chains, creating opportunities for Thai suppliers of high-value components, raw materials, machinery, and environmental technologies.