New decree offers preferential import tariff policies for auto firms

The Government has issued a new decree, amending and supplementing the Decree No. 26/2023/ND-CP on the export and preferential import tariff schedules, as well as the lists of goods subject to absolute tax, mixed tax, and out-of-quota import duties, according to a report from the Vietnam News Agency.

The new decree, which took effect on July 8, 2025, revises the minimum production volume criteria for enterprises seeking to benefit from preferential import tariffs on automotive components under the preferential tariff program.

This policy aims to support domestic vehicle manufacturers and assemblers, particularly those producing environmentally friendly models.

Specifically, the decree stipulates that in cases where manufacturers and assemblers of petrol- or diesel-powered vehicles also produce electric vehicles, fuel cell vehicles, hybrids, vehicles powered entirely by biofuels, or those using natural gas, the output of these environmentally friendly vehicles may be included in both the total and model-specific production volume calculations. This combined figure will be used to determine eligibility for preferential import tariffs for corresponding petrol and diesel vehicle categories.

Additionally, if a company holds over 35% of the charter capital in other automotive manufacturing or assembly firms that have been certified by the Ministry of Industry and Trade, the vehicle output of those affiliated companies may be consolidated. The combined production volume will count toward meeting the minimum production threshold under the preferential tariff program.