New cars may be exempted from registration for the first time from 2023

03 Jan 2023

The Vietnam Register has just submitted to the Ministry of Transport (MOT) a plan to exempt new cars from registration for the first time within one year from the year of manufacture. Previously, the Traffic Police Department also had this proposal.


New cars will be exempted from registration for one year

According to VietNamNet on the morning of December 28, a representative of the Vietnam Register said that, after 6 months of impact assessment combined with the study of technical factors and actual data, the Vietnam Register has synthesized and submitting to the Ministry of Transport a plan to exempt registration for the first time for newly manufactured, assembled, and imported automobiles within one year of manufacture.

This plan has been registered by the Vietnam Register Department in the program of developing legal documents in 2023 of the Ministry of Transport and is taking steps to develop an additional and revised draft 16/2021/TT-BGTVT right in December 2022. If possible, the plan can be applied in early 2023.

Previously, in May 2022, the Traffic Police Department (Ministry of Public Security) sent a written request to the Vietnam Register to adjust several contents, most notably the proposal for exemption from inspection for manufactured vehicles that are still under manufacturer’s warranty.

The reason given by the Traffic Police Department is that the vehicles imported, manufactured, and assembled in the country have been checked for technical safety and environmental protection before being sold on the market, so the registration for new vehicles is not necessary.

“Immediately after the request of the Traffic Police Department, the Registry Department established a Working Group to carry out the study of the above content.

Along with that, based on the direction of the Minister of Transport at a briefing in December 2022, after synthesizing research results from actual data, the Working Group of the Vietnam Register urgently carried out the assessment of the effects, impacts, and tasks to be performed”, said a representative of the Department.

According to the Vietnam Register, the results of research, synthesis, and evaluation from registration units across the country, show that: The rate of critical vehicles that need maintenance and repair for re-inspection for this group of vehicles accounts for a very low percentage (from 0.17-0.31%). Therefore, the exemption of registration for new vehicles is reasonable.

Regarding the study of regulations, warranty period, and storage time before products reach consumers, the Registry Department proposes to apply only to vehicles carrying out inspection within 1 year of manufacture.

Explaining this, a representative of the Registry said that storing warehouses for a long time (more than 1 year) will cause damage, wear and tear, and decrease in technical characteristics. Many details on cars such as plastic, rubber, lubricating oil, electronic components still need to be checked before going into use.

The Registry Department also emphasized that the option only exempts technical and environmental inspection for vehicles, but still needs to make vehicle documentation. During the process of registering the vehicle, the vehicle registration unit will check the identification and compare the identification specifications of the vehicle with the production, assembly, and import database to perform management well.


Saving hundreds of billions every year

Although the implementation of the new vehicle registration exemption for the first time may affect the revenue of motor vehicle registration units, this option is still considered by the Vietnam Register to be very feasible. At the same time, it saves time, effort and money of people and society.

According to experts, with the current size of the new car market in Vietnam at over 500,000 vehicles per year, if all new cars are to be registered, the current fee is from 340-610 thousand VND/car. The amount of money people and businesses spend on registering new cars will reach hundreds of billion VND per year, excluding time, effort, and other costs.

However, when implementing an exemption from technical safety and environmental protection checks for the first time, it means increasing the responsibility of manufacturers, assemblers, and importers.

Specifically, because there is no need to check for technical safety and environmental protection, there may be a situation where a motor vehicle is modified upon delivery, resulting in a difference from design by the manufacturer before going to the registry for documentation. Detection could not be made on time.

Therefore, ensuring technical safety and environmental protection of motor vehicles falls under the main responsibility of vehicle manufacturers, importers, vehicle owners, and drivers. In addition, for insurance enterprises, it is necessary to coordinate with manufacturers and car owners to determine liability when insurance and compensation problems occur.



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