May 4 – The Vietnamese government cut automobile registration fee by half to 5 to 6 percent of the vehicle price until the end of the year to encourage more people to buy cars during the global economic crisis.

Moreover, the value-added tax on a number of goods has also been cut in half including fiber, cloth, garments, leather and footwear, paper and paper products, cement, tiles, and 125cc motorcycles or bigger beginning Friday.

Corporate tax for the last quarter of 2008 has also been cut for some textile, garment and footwear firms. Registration fees for vehicles that have less than ten seats will amount to six percent of the price in Hanoi and five percent in other cities.

According to the Vietnam Automobile Manufacturers’ Association, first quarter sales dropped by 36 percent compared to last year amounting to 21,839 units. Much of the cars were purchased in March when buyers bought quickly before the implementation of a luxury tax in April 1.