Vietnam electric car tax incentives in the U.S. Strengthening ASEAN-US Economic Ties

Vietnam electric car tax incentives: The United States-ASEAN Business Council’s CEO suggested that Vietnam receive electric car tax incentives. The US-ASEAN Corporate Council is a large Southeast Asian corporate organization that works for the U.S. Meanwhile, Vietnam’s VinFast makes cars. A $4 billion North Carolina facility is planned. The U.S. will buy electric vehicles from this plant. VinFast may need the tax incentive to compete.

The U.S. Inflation Reduction Act (IRA) is supposed to reduce China’s role in electric car battery supply chains. These rules only benefit US-free trade partners. These laws diminish the likelihood of the U.S. using Chinese supply chains for electric vehicle batteries. Vietnam doesn’t belong. VinFast wants to expand in the U.S. and make electric cars. It’s aiming to join the tax credit program and be treated like other electric car makers.

VinFast has started building, which is promising. Tax advantages for Vietnam need to be clarified. Former U.S. ambassador to Vietnam, Ted Osius, believes we will solve this problem shortly. Osius started with this employment.

Vietnam electric car tax incentives
VinFast wants to expand in the U.S. and make electric cars.

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E.V. buyers in the U.S. can get a $7,500 IRS tax credit. This credit requires some battery minerals from the U.S. or a free trade agreement country. Japan and the U.S. agreed on vital minerals. Japanese autos can earn tax credits. The E.U. and Britain seek to use laws to do that. Despite the US-Japan mineral deal, this is true.

Vice President Joe Biden wants to strengthen our relationship with Vietnam at the September G20 summit in New Delhi, India. This is essential since our partnership has grown as US-China tensions have increased—September’s meeting. Osius recommends tax breaks for 14 IPEF members. This trade agreement involves Vietnam and Indonesia. Osius believes these tax concessions could benefit Vietnam and Indonesia. This project includes Indonesia and Vietnam. Indonesia supplies many minerals for electric car batteries.

The Biden administration seeks to engage with ASEAN governments and Asia’s economy. Vietnam joining the International Plug-In Electric Vehicle (IPEF) E.V. Tax Credit Program could demonstrate the IRA’s strength and importance. IPEF runs the application.

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