On June 12, 2025, Vietnam’s National Assembly made a sweeping change to the country's administrative landscape by passing a resolution that reduced the number of provinces and centrally governed cities from 63 to just 34. This major reorganization, set to take effect on July 1, 2025, has significant implications for vehicle registration and licensing across the nation, especially in major urban hubs like Ho Chi Minh City and Hanoi, which will now hold the most vehicle license plate prefixes.
Following the merger, the vehicle license plates issued will be a combination of the existing plates from the pre-merger provinces. However, for vehicles already on the road before July 1, owners are not required to change their license plates immediately. According to Circular 79/2024/TT-BCA issued by the Ministry of Public Security on November 15, 2024, and effective from January 1, 2025, new vehicle registrations and license plate issuances will follow the new administrative region codes. But for existing vehicles, the previously issued license plates and registration documents remain valid until their expiration or if there is another compelling reason to change them.
Deputy Chairman of the National Assembly, Nguyen Khac Dinh, reassured the public that "people and businesses can continue to use existing documents until they expire; if re-issuance is needed for a new address, procedures will be simplified and free of charge." This means that despite the administrative reshuffle, citizens can rest easy knowing their vehicle documentation remains legitimate without immediate action.
Temporary guidelines are in place for new registrations as well. For example, residents in the former Thai Binh province will continue to register vehicles under their old provincial codes until further instructions are issued, even though Thai Binh has merged with Hung Yen province, which uses the code 89. This transitional approach avoids confusion and administrative backlog during the initial phase of the merger.
However, there are six specific cases where vehicle owners must update their registration or license plates, regardless of the administrative changes. These include situations where the registration certificate or license plates are damaged or illegible, vehicles have undergone modifications such as color changes or technical alterations, or when the vehicle’s usage purpose changes (for instance, switching from personal to commercial use). Other mandatory cases include transferring vehicle ownership to a different province, changes in owner information, expired registration certificates, or when owners request to switch between short and long license plates.
Meanwhile, the Ministry of Finance has proposed a unified registration fee structure to ease the financial burden on citizens amid these administrative reforms. Under the current system, first-time motorcycle registrations in six centrally governed cities—Hanoi, Hai Phong, Hue, Da Nang, Ho Chi Minh City, and Can Tho—as well as 83 provincial cities, incur a 5% registration fee. This disparity arises because these cities have historically charged higher fees than other provinces.
With the mergers reducing the number of provincial-level units to 34 and some provinces merging into centrally governed cities (for example, Hai Duong with Hai Phong, Quang Nam with Da Nang, Ba Ria – Vung Tau and Binh Duong with Ho Chi Minh City, Soc Trang and Hau Giang with Can Tho), the current fee system would inadvertently increase fees for residents in merged provinces by 3%, creating an unfair financial burden.
To address this, the Ministry of Finance has drafted an amendment to Decree No. 10/2022, proposing to eliminate the 5% registration fee for motorcycles in cities and implement a standardized 2% fee nationwide for first-time motorcycle registrations. Subsequent registrations would be charged at 1%. This change aims to reduce difficulties for citizens during the administrative unit consolidation.
For other vehicles such as cars, trailers, motorized four-wheeled passenger and cargo vehicles, and specialized motorcycles, the proposed registration fee is set at 2%. Passenger cars with up to nine seats would face a first-time registration fee of 10%, though local People's Councils can adjust this fee by up to 50% depending on regional conditions. Notably, battery-electric cars will enjoy a 0% registration fee from the decree's effective date until February 28, 2027, encouraging environmentally friendly transportation.
The Ministry of Finance also plans to use a streamlined government procedure to enact this decree by June 2025, ensuring it takes effect on July 1, alongside the administrative mergers. Until provincial and city authorities issue their own fee schedules for cars and motorcycles, the Ministry’s existing tables will remain in force through the end of 2025.
These coordinated efforts reflect the Vietnamese government’s commitment to smoothing the transition amid significant administrative changes, ensuring that citizens face minimal bureaucratic and financial hurdles. The combination of maintaining existing vehicle registrations, simplifying re-issuance processes, and adjusting registration fees demonstrates a pragmatic approach to governance during this period of transformation.
While the mergers promise streamlined administration and potentially more efficient governance, the government’s careful handling of vehicle registration and fees highlights sensitivity to everyday citizens' practical concerns. As the new 34 provincial units begin operation, residents and businesses can expect a period of adjustment but also reassurance that their current vehicle documentation remains valid and that any necessary changes will be handled with simplicity and fairness.
