Registration fees for domestically manufactured and assembled cars will be cut by 50% for three months, from September 1, 2024 to November 30, 2024, following a Decree issued freshly by the Government.

The move is expected to help promote consumption and support the domestic automobile industry as car sales have dropped drastically, according to the Ministry of Finance (MoF).

The number of cars sold in the first six months of this year was 67,849, a year-on-year reduction of 15%, figures from the Viet Nam Automobile Manufacturers' Association (VAMA) show.

In April, domestic auto sales dropped 3-14% compared to that of imported cars, the VAMA said.

According to the MoF, the cut will reduce State budget collections by VND867 billion ($34 million) per month.

From December 1, 2024, the current registration fees will be applied again to cars produced and assembled in Vietnam.

Last year, the Government also decided to slash registration fees for domestic cars by half in six months.