Decree 199 / 2025 / ND-CP was issued in the context that the Government needs to adjust the preferential export tax and import tax mechanism for a number of goods to balance fiscal policy and support the manufacturing industry, especially in industries with large demand for imported raw materials, or the automobile - green car industry, and auto parts industry. At the same time, the amendment aims to adjust the tax incentive conditions to better suit the actual production - business situation and sustainable development policy orientation. Join GREEN IN to learn in detail the content and impact of Decree 199/2025/ND-CP!
Main contents of Decree No. 199/2025/ND-CP
Decree 199 / 2025 / ND-CP There are many important amendments related to preferential export and import tariffs and tax incentives for the manufacturing industry, of which three main groups of changes stand out: adjusting tax rates, adding incentives for green cars and abolishing inappropriate regulations.
Amendments and supplements to export tax and preferential import tax schedules
One of the core contents of Decree 199/2025/ND-CP is to adjust tax rates for a number of key commodities. Specifically, export tax on yellow phosphorus is adjusted down to encourage deep processing instead of raw export. Meanwhile, preferential import tax on raw materials such as black steel plate (TMBP), polyethylene, and some plastic and chemical materials are adjusted to support domestic enterprises to reduce production costs, meeting the needs of developing supporting industries. These adjustments reflect the policy of both ensuring budget revenue and encouraging domestic production to increase added value.
New regulations provide incentives for the production and assembly of green/environmentally friendly cars
In addition to changes in tax schedules, Decree 199/2025/ND-CP also focuses on promoting the automobile industry in an environmentally friendly direction. Accordingly, electric, hybrid, plug-in hybrid, and biofuel vehicles are added to the list of minimum output for consideration of preferential import tax on components.
A notable new point is that it allows the accumulation of output between companies with capital relationships to meet preferential conditions, instead of only considering each legal entity as before. This policy is expected to create motivation to attract investment, expand scale and reduce the cost of green car production in Vietnam.
Abolish and adjust unreasonable procedures and regulations
In addition to the above two policy groups, Decree 199/2025/ND-CP also abolishes a number of inappropriate provisions in Decree 26/2023/ND-CP, such as Point a.7, Clause 8, Article 8 and a number of product notes, to reduce overlapping procedures and difficulties in application in practice.
At the same time, the decree also adjusts the application period of preferential tax rates for a number of imported goods to better suit international market fluctuations and the development orientation of the economy. These moves demonstrate the Government's efforts to create a more transparent, stable and favorable legal environment for import and export activities.
Impact on stakeholders
The changes in Decree 199/2025/ND-CP are not only technical in terms of tax but also directly impact many groups of subjects, from import-export enterprises, the automobile industry, specific manufacturing industries to the State in fiscal policy planning.
Import and export enterprises
For businesses operating in the import-export sector, the change in tax rates has a double impact. On the one hand, items with reduced import tax such as raw plastics or some intermediate steels will help businesses reduce import costs and have an advantage in maintaining competitiveness.
On the other hand, products subject to increased taxes, such as yellow phosphorus or black steel plates (TMBP), will increase import and production costs, forcing businesses to adjust their business plans, restructure their raw material sources or seek alternative partners.
Automotive industry
In the automotive sector, new regulations on tax incentives are considered an important “push” to promote the development of electric vehicles and green vehicles. Adding the production of electric vehicles, hybrid vehicles, and vehicles using biofuels to the criteria for considering tax incentives for imported components creates favorable conditions for businesses to access support policies.
In particular, the regulation allowing the accumulation of output between capital-related enterprises will make it easier for small and medium-sized companies or business alliances to meet the criteria, thereby increasing their opportunities to participate in the market.
Manufacturing industry/specialty products
For manufacturing industries that rely on imported raw materials, the impact of the decree is quite obvious. Adjusting taxes on polyethylene, black steel and yellow phosphorus may increase production costs, leading to higher product prices and affecting the competitiveness of domestic enterprises. Industries such as chemicals, packaging plastics, fertilizers or deep-processed steel may face pressure to change technology to reduce dependence on imported raw materials and take advantage of the new incentives.
The State and Fiscal Policy
From a macro-management perspective, Decree 199/2025/ND-CP will help the State increase budget revenue from import and export taxes, especially for items in high demand in the international market. However, to ensure a balance between budget revenue targets and support for green industry development, the Government may need to consider compensation mechanisms through other incentives, such as tax exemptions for businesses investing in green technology or interest rate support for the electric vehicle manufacturing industry. This advantage will help maintain investment attractiveness while ensuring sustainable development goals.
Conclusion
In general, in the short term, businesses need to quickly adapt to changes in costs and preferential conditions; while in the long term, the decree opens up opportunities to promote green industry development, reduce dependence on imported raw materials and improve national competitiveness. If implemented synchronously with other support policies, Decree 199 / 2025 / ND-CP Not only does it bring economic efficiency, it also contributes to shaping a sustainable economy, in line with Vietnam's green growth orientation and international integration commitment.