Workers at a Honda factory in Vĩnh Phúc. — VNA/VNS Photo

HÀ NỘI — The Government has issued Decision No. 1891/QĐ-TTg, approving a plan to reduce and simplify administrative procedures in production and business under the management of the Ministry of Public Security in 2025.

A key highlight is a 30 per cent reduction in fees for first-time vehicle registration and number plate issuance when completed through the national public service portal. The policy is expected not only to ease financial burdens but also to help stimulate the slowing automobile and motorbike market.

According to the Decision, which takes effect on September 3, 2025, citizens completing first-time vehicle registration, either in person or online, will receive a 30 per cent fee reduction compared to the current rate. At the same time, registration results will be integrated into the VNeID digital identification app, helping to cut costs, simplify procedures and improve management efficiency.

Fees are divided into three regions. In Hà Nội and Hồ Chí Minh City – where the highest rates apply – the reductions are significant: motorbikes valued at VNĐ15–40 million drop from VNĐ2 million to VNĐ1.4 million; motorbikes worth over VNĐ40 million fall from VNĐ4 million to VNĐ2.8 million; cars with fewer than nine seats drop from VNĐ20 million to VNĐ14 million. In other regions, the absolute reductions are smaller, but the 30 per cent rate applies consistently nationwide.

In particular, integrating vehicle registration data into VNeID means citizens no longer need to carry paper documents, while also assisting authorities with management and verification. Experts note that beyond the immediate financial benefits, the policy has long-term significance in promoting digitalisation, moving towards e-government and e-citizenship.

Decision 1891/QĐ-TTg was issued against the backdrop of difficulties in the automobile and motorbike market. According to the Vietnam Automobile Manufacturers’ Association (VAMA), sales in August 2025 reached only 25,973 units, down 18 per cent from the previous month. Beyond seasonal factors, purchasing power has also been affected by Directive No. 20/CT-TTg, issued in July 2025, which restricts fossil-fuel vehicles starting from 2028, causing many buyers to hesitate before purchasing petrol or diesel vehicles.

“With demand declining, cutting registration fees by 30 per cent is a timely measure. For cars, savings of VNĐ6 million may not be a big push, but it still provides important psychological support. For motorbikes – the most common means of transport – reductions from several hundred thousand to over VNĐ1 million will have a more direct impact,” urban transport expert Nguyễn Văn Bình said.

“This policy not only eases the financial and administrative burden for citizens but also helps businesses sustain demand, while preparing for the transition to green vehicles,” added Lê Thị Hương, a motorbike dealer in Hà Nội.

Experts also noted that the ripple effects will extend to transport and service companies, as lower costs make it easier to expand fleets. Digitalising registration data will further improve tax, insurance and traffic violation management.

They said the reduction in registration fees is not merely a financial measure but also a demonstration of the Government’s determination to reform administrative procedures, promote digital transformation and encourage green consumption. At a time of declining purchasing power, it is expected to be an important boost for Việt Nam’s vehicle market. — VNS