The Vietnamese government has approved a plan to reduce vehicle registration fees by 30% in centrally-administered provinces and cities. This cost reduction, outlined in Decision 1891 issued by the Prime Minister on 3/9/2025, applies to both online and in-person registrations. The decision focuses on streamlining administrative procedures within the Ministry of Public Security for 2025. The fee reduction will be implemented sometime in 2025, but a specific date has yet to be announced. Following the recent merger, Vietnam now has six centrally-administered cities: Hanoi, Hai Phong, Hue, Da Nang, Ho Chi Minh City, and Can Tho.

The 30% fee reduction applies to several procedures, including first-time registration, renewal, reissue of registration certificates and license plates, and temporary vehicle registration within the centrally-administered provinces and cities. Registration results will also be integrated into the VNeID national digital identification app.

Current vehicle registration fees are stipulated in Circular 60/2030, amended by Circular 71/2025 of the Ministry of Finance. The current and reduced fees for centrally-administered cities are detailed below:

Expected fee reductions for vehicle registration procedures in the six centrally-administered provinces and cities. Graphics: Ho Tan

This reduction will significantly lower administrative costs related to cars and motorbikes, ranging from a few hundred thousand to several million dong. For example, in Hanoi and Ho Chi Minh City, the registration fee for cars with fewer than 9 seats will drop from 20 million dong to 14 million dong, and for motorbikes from 1-4 million dong (depending on the vehicle's value) to 700,000-2,800,000 dong. Other fees, such as those for renewing registration certificates, license plates, and temporary plates, will see smaller reductions of a few tens of thousands of dong.

After the merger, many residents previously in Region II provinces like Vung Tau and Binh Duong now reside in Region I (Ho Chi Minh City). This resulted in a sharp increase in car registration fees, from 1 million to 20 million dong. The 30% reduction will lessen the financial burden for these residents.

In addition to the fee reduction, registration results will be integrated into the VNeID app, making it easier for people to track their registration status. This means first-time vehicle registration will be fully online, allowing applicants to submit documents, pay fees, and receive results entirely digitally.

People completing vehicle registration procedures at the Road Motor Vehicle Registration and Management Team in Binh Thanh District, Ho Chi Minh City. Photo: Pham Trung

The fee reduction, coupled with the implementation of fully online public services, is expected to encourage digital platform use, reduce travel time and social costs, and enhance transparency in administrative processes. This initiative forms part of the national administrative reform and digital transformation program.

Ho Tan