Vietnam – Buying or Importing a Car

How do I buy a new car in Vietnam as a foreigner?

Foreign nationals are allowed to buy a car in Vietnam, though once a vehicle is chosen, it must be registered within ten days of the transaction. In practical terms, this makes a valid residence permit indispensable: dealerships will ask for evidence of legal residency in the country before they can process a sale in a foreigner’s name.

When making a purchase as a foreigner, you will typically be required to provide your passport, visa, proof of address, and financial documentation demonstrating your capacity to own and maintain a vehicle. A tax identification number (TIN), which can be obtained through the General Department of Taxation, may also be needed for the sale and subsequent registration. It is worth confirming exact requirements with both the dealership and your local tax office, as these can vary.

Vietnam has a well-established new car market, with leading international brands — including Toyota, Honda, Hyundai, Kia, Ford, and a rising number of Chinese manufacturers — selling through franchised dealerships, primarily concentrated in Hanoi and Ho Chi Minh City. Most vehicles in the market are priced between VND 350 million and VND 1.2 billion, with MPVs and SUVs commanding particularly strong demand.

The electric vehicle segment is growing rapidly, with battery-electric vehicles benefiting from favourable tax treatment and registration fee exemptions. When the full tax burden is factored in, EVs can be comparatively attractive in cost terms relative to conventionally powered alternatives.

Financing options for foreign nationals are constrained. The majority of Vietnamese banks require a local guarantor, an established credit record in Vietnam, and a long-term residence permit before they will extend a car loan to a non-citizen. In practice, many expats buy vehicles outright with cash, or arrange a company purchase through their employer where this is possible. Check the current lending criteria directly with your bank or the dealership’s own finance arm.

For regulatory guidance on vehicle ownership by foreigners, consult the Ministry of Public Security (MPS) and the Ministry of Transport, the two principal authorities responsible for vehicle registration and road traffic matters in Vietnam.

How do I buy a used car in Vietnam?

The second-hand car market in Vietnam is lively, with vehicles on offer through franchised used-car outlets, independent dealers, and private listings. Buyers can locate sellers via online classifieds, dealerships, or personal recommendation. Widely used online platforms include Chotot.com and Carmudi Vietnam. As with a new car purchase, a valid residence permit is required to register the vehicle in your name.

A sale and purchase agreement capturing the agreed price and any other conditions must be drawn up and notarised. This distinguishes Vietnam from many other markets where a simple written private contract is sufficient: notarisation is a legal requirement here. If the seller resides in a different province, the buyer must travel to that province with all the relevant legal documentation to have the agreement notarised, with the sale formally concluded there and the registration subsequently completed in the buyer’s home province.

Thorough due diligence before committing to any used vehicle purchase is essential. Key checks include:

• Ownership verification: Confirm that the seller is the registered owner by examining the vehicle’s “Blue Book” (registration certificate/giấy đăng ký xe). The name recorded in the document should match the seller’s identification.
• Outstanding fines or tax: Check with the local traffic police or the relevant provincial Department of Transport for any unpaid penalties or road tax associated with the vehicle’s licence plate.
• Accident and maintenance history: Vietnam does not yet have a fully centralised national vehicle history database comparable to those found in certain European markets. Ask for any available service records, examine the vehicle carefully, and consider commissioning a pre-purchase inspection from an independent mechanic.
• Finance or liens: Establish that the vehicle has not been pledged as security for a loan. A notary or legal adviser can assist with this verification.

At the point of sale, the principal documents that change hands are the notarised sale contract and the original registration certificate (Blue Book). Following the purchase, the buyer must apply to transfer ownership at the local traffic police station or Department of Transport within the legally stipulated period — generally within ten days. An updated registration document in the new owner’s name is issued once all formalities are complete.

Cross-province purchases involve a notably lengthy and involved process and are not an approach recommended unless you have dependable legal support. Engaging a local lawyer or a reputable agent to manage the documentation is strongly advisable, particularly for those unfamiliar with the system.

Can I import a vehicle into Vietnam, and how does the process work?

Importing a vehicle into Vietnam is among the most involved processes a foreigner or expat will encounter. Those thinking about bringing their own car into the country must be aware that import taxes and duties are substantial, and the procedures can quickly become complicated. With careful planning, however, it is achievable.

Eligibility and vehicle restrictions

Vietnam limits personal car imports to vehicles with no more than nine seats, and only left-hand drive vehicles are eligible for permanent registration. Right-hand drive vehicles are allowed exclusively for tourists for a maximum of 30 days. This is a critical point for anyone relocating from a country where traffic drives on the left — such as Australia, Japan, or the United Kingdom — as their existing vehicle cannot be permanently registered in Vietnam.

The vehicle must be less than five years old from its manufacturing date, must have been owned and registered in the importer’s name for at least six months, and must have covered a minimum of 10,000 km. All new passenger car imports must meet Euro 5 exhaust emission standards.

The importer must be the original owner of the vehicle. If the car has passed through any additional ownership since the original title was issued, it cannot be brought into Vietnam.

There is no “personal effects” or “removal goods” concession that waives import duties on a vehicle transported as part of a household relocation — unlike, for instance, the EU’s Transfer of Residence relief. Every vehicle import is subject to the full tax framework described below.

Step-by-step import process

1. Confirm eligibility: Verify that the vehicle satisfies all age, ownership, mileage, emissions, and drive-side criteria. Gather the original title, registration paperwork, and evidence of how long the vehicle has been in your ownership.
2. Obtain an import licence: Apply for an import permit from the Ministry of Industry and Trade (MOIT), which holds authority over vehicle import authorisation in Vietnam.
3. Arrange shipping: Select a shipping method — roll-on/roll-off (RoRo) or container. As a reference point, RoRo shipping from the Port of Los Angeles to the Port of Saigon starts at around US$1,550 with an estimated transit time of 22–45 days (as of 2025; confirm current rates with shipping providers).
4. Customs declaration and payment: On arrival, submit your import licence, bill of lading, commercial invoice, certificate of origin, and translated registration documents; settle all applicable SCT, import duties, and VAT; and obtain the Customs Release Certificate. The relevant authority is the General Department of Vietnam Customs (GDVC).
5. Technical and environmental inspection: Within 10 days of customs clearance, register the vehicle with the Vietnam Register or an authorised inspection centre and obtain the Certificate of Technical Safety and Environmental Protection following a successful inspection.
6. Vehicle registration: Foreigners must register their vehicle within three working days of customs clearance. Submit the Customs Release Certificate, the safety and environmental certificate, a completed registration form, proof of insurance, passport, visa or residence permit, and work permit or residence certificate; pay Registration Tax (10–12%; EVs are exempt until February 2027).
7. Obtain licence plates: A Vietnamese licence plate is issued only after completing registration with a traffic police officer. Foreign licence plates cannot be used on Vietnamese roads. Plates issued to foreign-owned vehicles are always prefixed with NN or NG, indicating foreign or diplomatic ownership respectively.

Always confirm current import procedures and documentation requirements with the General Department of Vietnam Customs and the Ministry of Industry and Trade before proceeding, as rules are subject to frequent revision.

What are the costs involved in importing a car to Vietnam?

Vietnam’s vehicle import cost structure ranks among the most complex and expensive in Southeast Asia, applying multiple taxes in sequence on top of one another. The calculation follows a defined order: the customs value is first established on the basis of the CIF (cost, insurance, and freight) figure; import duty is then applied as a percentage of CIF; other relevant taxes such as the SCT or environmental protection tax are added on; and finally, VAT is assessed on the aggregate of CIF plus import duty plus those other taxes.

Import duty

Import duties are computed on the CIF value. The applicable rate is 0% under ATIGA for vehicles originating from ASEAN member states; 32–50% for 2.0–2.5 litre vehicles under MFN rates, reduced under Decree 73/2025; and up to 70% for vehicles from countries that do not have a preferential trade agreement with Vietnam (as of 2025). Because Vietnam belongs to ASEAN and has concluded multiple Free Trade Agreements — including with the EU (EVFTA) — the rate that applies depends heavily on the vehicle’s country of origin. Verify current applicable rates with the General Department of Vietnam Customs.

Special Consumption Tax (SCT)

The Special Consumption Tax ranges from 35–150% for petrol and diesel vehicles, scaling upward with engine capacity; hybrid vehicles attract 70% of the standard SCT rate; and battery EVs are charged at only 3% until February 2027, rising to 11% after that date (as of 2025). New SCT rates under Law No. 66/2025/QH15 are scheduled to come into force from 1 January 2026, so it is essential to check current figures before finalising any import. The SCT is one of the most significant components of the total tax burden and is calculated on the CIF-plus-duty subtotal, substantially compounding the overall cost.

VAT

VAT at 10% is imposed on the combined total of CIF value, import duty, and SCT. This cascading structure means the effective tax burden on a mid-range imported vehicle can readily approach or surpass the vehicle’s original purchase price.

Used vehicle surcharges

Importing a used vehicle attracts flat surcharges on top of the regular duties and taxes — for example, US$10,000 for used cars with an engine capacity up to 1,000 cc (as of 2025), and US$15,000 for those with engine capacity above 2,500 cc. These surcharges are applied irrespective of the vehicle’s actual market value and can significantly inflate total costs. Always confirm current surcharge figures with customs authorities before proceeding.

Registration tax

Registration Tax is levied at 10–12% of the vehicle’s assessed value, with battery EVs exempt until February 2027 (as of 2025).

Other costs

Additional charges include freight and insurance to the CIF value, customs broker fees, port handling charges, quarantine cleaning, local compliance modifications, and registration fees. Compliance modifications — which may involve adapting lighting systems, fitting locally required safety equipment, or recalibrating instrumentation — can add anywhere from several hundred to several thousand US dollars depending on the vehicle.

To illustrate the scale involved: a vehicle with an original value of US$25,000 can ultimately cost approximately VND 1.29 billion once imported, with close to half the total attributable to taxes and duties (as of 2025; treat this as an indicative estimate only). Always obtain a full cost breakdown from a licensed customs broker before committing to an import.

How do I register a vehicle in Vietnam?

Vehicle registration in Vietnam falls under the remit of the traffic police — specifically, the Traffic Police Division (Cảnh sát giao thông) operating under the Ministry of Public Security — rather than a separate civil licensing body as is the case in some other countries. This is worth bearing in mind for those accustomed to systems where registration and law enforcement functions are handled by different agencies.

Documents required for registration

To register a vehicle in Vietnam, you will need to present a valid passport alongside your visa or residency permit, as well as documentation confirming your permanent or temporary residence — such as a work permit or tenancy agreement. Other documents typically required include:

• Proof of ownership (purchase receipt, notarised sale contract, or customs release certificate for imported vehicles)
• Evidence of valid insurance cover, including third-party liability insurance
• A technical inspection report, as the vehicle may be required to pass a safety assessment before registration can proceed
• For imported vehicles: the Certificate of Technical Safety and Environmental Protection

Roadworthiness inspection

Newly purchased domestic vehicles generally need to undergo a technical safety and emissions check — conducted at an authorised inspection centre operated by the Vietnam Register (Cục Đăng kiểm Việt Nam) — before registration can be finalised. For imported vehicles, this inspection forms part of the customs clearance procedure. The Vietnam Register is the body responsible for vehicle technical safety certification and the ongoing periodic roadworthiness testing programme.

Timeframe

All vehicles must be registered within ten days of purchase. For imported vehicles, foreigners are required to complete registration within three working days of clearing customs. Adhering to these deadlines is important, as late registration can attract financial penalties.

Once the application has been lodged, a temporary licence plate is issued, valid for 20 days. This may be extended once for a further 20-day period if necessary. The permanent plate is issued once all requirements have been fulfilled to the satisfaction of the authorities.

For current registration requirements and procedures, contact the Traffic Police Division in your city or province, or refer to the Ministry of Public Security.

What insurance do I need to drive legally in Vietnam?

Third-party civil liability (TPCL) insurance — referred to in Vietnamese as bảo hiểm trách nhiệm dân sự — is compulsory for all motor vehicles in Vietnam and must be arranged before a vehicle can be registered. Proof of this cover is a prerequisite for vehicle registration. The policy covers injury or death to third parties and damage to third-party property caused by the insured vehicle.

Unlike some countries where compulsory motor insurance is provided entirely by private insurers competing in an open market, Vietnam’s mandatory third-party scheme operates within a state-established and regulated framework, with premiums determined by the Ministry of Finance. Insurers authorised to offer motor insurance in Vietnam include both state-owned enterprises and private companies. The insurance market is overseen by the Ministry of Finance’s Insurance Supervisory Authority.

Beyond the statutory minimum, comprehensive cover and third-party, fire and theft policies are available from a range of providers and are strongly recommended given Vietnam’s road conditions. Expats are encouraged to compare offerings from major insurers such as Bảo Việt, PVI Insurance, and international providers with a local presence.

Foreign no-claims records are generally not taken into account by Vietnamese insurers when calculating premiums, so expats should expect to pay standard market rates regardless of their claims history overseas. That said, it is worth obtaining a no-claims bonus certificate or equivalent claims history document from your home-country insurer before departing, as the market is developing and some internationally affiliated insurers may consider it.

For current minimum coverage requirements and a list of licensed insurers, consult the Ministry of Finance or the Insurance Association of Vietnam.

What driving licence do I need in Vietnam as an expat?

Foreign driving licences, even when supported by an International Driving Permit (IDP), carry no legal validity for driving in Vietnam. This represents a notable departure from the approach taken in many other countries, where an IDP paired with a foreign licence confers the right to drive for a defined period following arrival. In Vietnam, the IDP does not offer a sustainable long-term solution for anyone planning to live there.

Under Article 18.7 of the Ministry of Public Security’s Circular 12/2025/TT-BCA dated 28 February 2025, anyone wishing to drive in Vietnam must convert their foreign driving licence into the equivalent category of Vietnamese driving licence.

Although a driving licence issued by an ASEAN country may be recognised in certain specific circumstances as valid in Vietnam, it is still advisable to obtain a Vietnamese driving licence if you intend to drive legally over the long term. Where Vietnam is party to a bilateral or multilateral treaty on driving licences that applies to your situation and contains provisions that differ from those in Circular 12, the treaty provisions will take precedence.

Eligibility for conversion

To qualify for conversion, you must have been resident in Vietnam for a minimum of three months and hold a valid driving licence together with one of the specified categories of residence documentation. Specifically, you will need a valid Temporary Residence Card (TRC) and a current driving licence issued in your home country.

Documents required

The conversion application requires a completed application form in the prescribed format; a Vietnamese translation of your foreign driving licence, notarised by a notary office or your embassy or consulate; copies of your passport including the photograph, visa, and personal data pages; and a copy of your Temporary Residence Card, Permanent Residence Card, or other document certifying your residence status in Vietnam.

A certified copy of your home-country driving licence along with a translation, and a certified photocopy of your passport (photograph and visa pages), will also be required.

Process and timeframe

If your application file is approved, a Vietnamese driving licence will be issued and recorded in the national e-database within three working days. The provincial-level Traffic Police Division will then produce the physical licence within five working days. You may collect the licence in person or arrange for it to be delivered by post.

Validity

Your Vietnamese driving licence will be valid for whichever is the shorter of: the remaining validity of your diplomatic passport, official-duty passport, or residence permit; or the maximum validity period stipulated for the equivalent category of Vietnamese driving licence. The categories of vehicle you are authorised to drive will correspond to those permitted under your original foreign licence.

Foreigners may also apply online via dichvucong.gov.vn, although as of 2025 the portal is available in Vietnamese only. For in-person applications, the relevant authority is your local Department of Transport (Sở Giao thông Vận tải) or Traffic Police Division.

How do I sell a car in Vietnam?

Transferring ownership of a vehicle in Vietnam must be formally recorded with the traffic police — the same authority that handles initial registration. The process for the seller broadly mirrors the buying process in reverse, and completing it correctly is important to avoid continued liability for fines or road tax incurred after the sale has taken place.

Paperwork the seller must prepare

• The original vehicle registration certificate (Blue Book) bearing the seller’s name
• A notarised sale and purchase agreement setting out the agreed price and all terms of the transfer
• Valid national ID or passport
• Receipts confirming payment of any outstanding road tax or annual registration fees, demonstrating that no arrears exist

A sale agreement capturing the agreed price and any conditions of the transaction must be completed and notarised. Both parties typically attend the notarisation in person, though in certain cases a legal representative may act on behalf of one party.

Ownership transfer

After the sale is concluded, responsibility for applying to transfer the registration into the buyer’s name at the local traffic police station rests with the buyer — ideally within ten days of the transaction. However, the seller retains a degree of residual liability until the transfer is formally recorded in the traffic police register. It is strongly advisable to retain a copy of the notarised sale agreement and to confirm with the buyer once the registration transfer has been completed, ensuring that any future penalties or incidents are not attributed to the previous owner.

Outstanding obligations

Before finalising the sale, clear any outstanding annual registration fees, road use tax, or traffic penalties associated with the vehicle. These are tracked by licence plate number and can obstruct or delay the ownership transfer process if left unresolved.

Tax implications

Vietnam does not currently impose a specific capital gains tax on the private sale of a personal vehicle in the way that some countries apply to real estate transactions. However, where a vehicle is sold as part of a commercial activity, income tax obligations may arise. Individuals are advised to clarify their personal tax position with the General Department of Taxation or a qualified local tax adviser, as the regulatory landscape may evolve.

Are there any ongoing costs or obligations for vehicle ownership in Vietnam?

Owning a car in Vietnam involves a range of recurring expenses and regulatory requirements. Many new owners are taken aback by the true cost of running a vehicle here, so planning for these obligations from the outset is advisable.

Registration fee (road use fee)

Vietnam levies an annual road use fee (phí sử dụng đường bộ) on all vehicles. The applicable amount varies according to vehicle type and engine capacity and is administered at the provincial level. Check the current fee schedule with your local Department of Transport or the Ministry of Transport.

Periodic technical safety and emissions inspections

All registered cars in Vietnam must undergo periodic roadworthiness inspections — known as đăng kiểm — at authorised centres operating under the Vietnam Register (Cục Đăng kiểm Việt Nam). This is broadly equivalent in function to the annual MOT check in many European countries or the periodic warrant of fitness inspection used elsewhere. The frequency of inspection is determined by the vehicle’s age:

• New cars: first inspection typically after 30 months, then every 18 months
• Older vehicles (generally over 7 years): inspections every 6 months

The inspection covers technical safety, emissions output, and environmental compliance. Vehicles that do not pass must be repaired and resubmitted before they may lawfully be used on public roads. Confirm the current inspection schedule and locate your nearest authorised centre at the Vietnam Register website.

Compulsory insurance renewal

Third-party civil liability insurance must be renewed each year. Premiums are regulated and remain relatively modest, but failing to maintain valid cover constitutes both a criminal and an administrative offence under Vietnamese law.

Fuel and running costs

Petrol prices in Vietnam are set by the government and revised on a periodic basis. Fuel expenses are generally lower than in Western Europe but somewhat higher than in certain other Southeast Asian markets. Parking in major urban centres — particularly central Hanoi and Ho Chi Minh City — can represent a meaningful additional cost, especially given the fees charged in commercial parking facilities in prime districts.

Environmental and emissions levies

Vietnam applies an Environmental Protection Tax to fuel at the point of sale. While this is not a direct vehicle-specific charge, it forms part of the effective running cost of any petrol or diesel car. Growing consumer interest in fuel-efficient and lower-emission vehicles reflects Vietnam’s broader policy direction to decarbonise transport and tackle urban air quality, suggesting that further regulatory developments in this area are likely in the years ahead.

Frequently asked questions

Can a foreigner own a car in their own name in Vietnam?

Yes. Foreign nationals holding a valid residence permit — such as a Temporary Residence Card (TRC) — are entitled to own and register a car in their own name in Vietnam. You will need your passport, residence documentation, and proof of address. Visitors on short-stay tourist visas are generally not in a position to register a vehicle in their name. Always verify current eligibility requirements with the local traffic police or Department of Transport.

Is it cheaper to buy a car locally or import one from abroad?

For the vast majority of people, purchasing a vehicle already available in the local market — whether new from a dealership or second-hand — is far less expensive than importing. Vietnam’s multi-layered import tax structure (import duty + Special Consumption Tax + VAT + registration tax) means that even a modestly valued imported car can end up costing double or more its original price by the time all taxes are settled. Buying locally sidesteps these import costs entirely.

Can I drive in Vietnam on my foreign driving licence?

Foreign driving licences, even when accompanied by an International Driving Permit, are not legally valid for driving in Vietnam. If you plan to live in Vietnam and drive, you must convert your foreign licence into a Vietnamese one. The conversion process requires a minimum of three months’ residency in Vietnam and a valid Temporary Residence Card. Contact the local Department of Transport or Traffic Police Division for the current procedure.

How long does the vehicle registration process take?

For a locally purchased vehicle, registration must be completed within ten days of the purchase date. For an imported vehicle, registration must take place within three working days of customs clearance. A temporary licence plate, valid for 20 days with one possible further extension, is issued when the application is lodged. Including the inspection stage, the entire process typically takes one to two weeks, depending on how busy the relevant inspection centre and traffic police office are.

Are right-hand drive vehicles allowed in Vietnam?

Right-hand drive vehicles are only permitted in Vietnam for tourists, for a maximum stay of 30 days. Permanent registration is restricted to left-hand drive vehicles. This means anyone relocating from a country where traffic moves on the left cannot import and permanently register the car they already own.

What happens to my car’s registration if my residence permit expires?

Your vehicle registration and Vietnamese driving licence are generally linked to the validity of your residence permit. When your permit expires or is renewed, you will need to update both your registration and your driving licence accordingly. Continuing to drive and own a registered vehicle after your residence permit has lapsed may affect both your legal entitlement to drive and the validity of your insurance cover. Always consult the relevant traffic police division and your insurer whenever your residency status changes.

Do I need to pay any tax when selling my car in Vietnam?

Private individuals selling a personal vehicle are not generally liable for a specific capital gains tax on that transaction. However, where a sale takes place as part of a business activity, different tax rules may apply. Vietnam’s tax regulations are subject to change, so you should confirm your obligations with the General Department of Taxation or a qualified local tax adviser before completing any sale.

How often does a car need to be inspected in Vietnam?

Vietnam mandates periodic technical safety and emissions inspections (đăng kiểm) for all registered vehicles. New cars are typically due for their first inspection after 30 months, then every 18 months thereafter. Older vehicles — generally those over seven years of age — must be inspected every six months. Inspections are conducted at authorised centres under the Vietnam Register. Check the current schedule and find your nearest authorised centre at the Vietnam Register website.