Electric Vehicle Trend
Electric cars are becoming more visible on Vietnamese streets, signaling a shift from traditional vehicles. However, this transition is slower compared to the US, Europe, or China. According to the Vietnam Register, imported electric car numbers rose from 6 in 2020 to 190 in 2023, reaching 366 by early 2024. In contrast, domestically produced EVs saw significant growth, with over 15,000 units produced in 2023 and over 7,000 in the first quarter of 2024, totaling over 30,000 since 2021.
Opportunities and Challenges
Foreign car brands, including long-established ones, are introducing hybrid and electric models in Vietnam. The main players, however, are VinFast and several Chinese brands. China’s BYD, for example, leads globally due to substantial government support and incentives. Despite interest, the market size has made some companies hesitant to invest. BYD, initially planning a factory in Vietnam, postponed this in favor of a $1.3 billion investment in Indonesia.
Other Chinese brands are collaborating with local firms, such as TMT Motors and GM’s joint venture producing mini electric vehicles, and Chery Group’s $800 million investment with Geleximco. Experts see great potential in Vietnam’s EV market despite its current small scale.
Infrastructure Needs
The growth of EVs demands a robust charging infrastructure. VinFast is investing in its charging stations, and companies like EV One are establishing a network, aiming for over 100 stations by 2025. However, Chinese brands have yet to develop charging stations in Vietnam.
Nguyen Hoang Anh from the Vietnam Road Department highlights the ongoing transition to electric transportation. Efforts include updating rest stop standards to accommodate EV charging and encouraging the shift to electric taxis and buses. Future policies will focus on expanding charging infrastructure and promoting green transport criteria.
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Source: Vietnam Insider