Key Points:
- A recent BMI Research analysis predicts that the EV Market in Vietnam will rise to 13.6% in 2023 from 2.9% in 2022.
- In 2023, the research group predicts EVs will rise rapidly in Vietnam’s passenger vehicle market.
- As the local EV Manufacturers increase production in 2023, VinFast deliveries and inexpensive China-made EVs will rise.
Electric Vehicles (EVs) are a symbol of innovation and environmental awareness in Vietnam’s vibrant economy. Vietnam is on the verge of a transformation as EV adoption weaves itself into its future. Myriad forces collide to accelerate EV growth like a rainstorm. Like rains revitalizing lush trees after a drought, legislative incentives and government measures are driving Vietnam’s EV rebirth. A visionary administration has planted the seeds of change via tax incentives, subsidies, and substantial infrastructure development, allowing EVs to blossom like lotuses in a peaceful pond.
The EV Market in Vietnam will develop rapidly in the coming decade, but obstacles may slow it. BMI Research, a Fitch Solutions research subsidiary, expects passenger EV sales to quadruple this year.
BMI’s analysis predicted 114.8% year-over-year passenger EV sales growth reaching 18,000 units in 2023. The research predicted 104.4% growth in battery electric vehicle (BEV) sales to approximately 17,000 units. Plug-in hybrid vehicles (PHEVs) in Vietnam might increase nine-fold to 1,100 units annually.
By 2030, passenger EV sales will account for 13.6% of total passenger car sales in Vietnam
Passenger EV sales in Vietnam with an average 25.8% annual growth between 2023-2032 will reach 65,000 units, up from 8,400 in 2022, according to BMI. By 2030, passenger EV sales will account for 13.6% of total passenger car sales in Vietnam. That’s up significantly from 2.9% last year.
The Vietnam Automobile Manufacturers Association expects 1 million EVs by 2028 and 3.5 million by 2040. Last year, electric cars made up a minor portion of Vietnam’s passenger automobile market. Statista reported 284,000 passenger vehicle sales in Southeast Asia, “with only a few thousand of them being electric cars.”
EV Growth Factors in Vietnam
In the rest part of 2023, VinFast will enhance manufacturing, which could boost EV sales. “The local production of VinFast, Wuling HongGuang, Skoda, and Hyundai-branded EVs over 2023-2032 forecast will drive strong market growth,” stated BMI. According to BMI, VinFast dominates Vietnam’s passenger EV market with over 50% market share in 2022. Chinese brands control the remainder.
A rise in inexpensive Chinese EVs will also stimulate growth
According to BMI, Wuling HongGuang’s inexpensive micro EV might boost passenger EV sales. In Vietnam, the Wuling Hongguang Mini EV costs 239 million dong ($10,065). For Vietnam, VinFast introduced a $23,000 affordable electric vehicle in April. The EV manufacturing in the Association of Southeast Asian Nations—Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam—boosted growth, according to the research company.
Vietnamese authorities said in January that they would exclude fully manufactured automobiles from the 10-member bloc from import duty until 2027.
The challenges facing the EV Market in Vietnam
In Vietnam, poor salaries and a lack of incentives would slow EV adoption, BMI stated without details. Battery leasing, which lets buyers rent batteries when they purchase new EVs, may reduce costs. The research forecasts more taxi fleet operators due to this policy. Green SM established a VinFast-powered EV taxi service in Vietnam in April. Similar developments from other local taxi fleet operators will also help EV adoption in Vietnam by raising public awareness of EVs, stated the research firm.
The charging infrastructure may potentially hamper Vietnam’s electric car market. Most charging stations serve electric bikes and scooters. To expand the EV charging network, BMI anticipates additional players in 2024, and beyond. EBOOST will add charging sites to Vietnam’s EV charging network. Taiwanese media reported that Foxconn would spend $250 million to develop EV charging equipment and component manufacturing facilities in Vietnam. BMI has stated this will speed up the local and Southeast Asia regional EV charging networks.
Concluding Remarks
Technological innovation emerges like a banyan tree in this fruitful terrain, supporting EV development with its complex branches. With advances in battery technology and charging infrastructure, EV adoption becomes easier, allowing sustainable transportation to penetrate Vietnamese culture like Jasmine on a soft breeze. The promise of a greener future makes EVs appealing beyond their utility. In a nation where environmental consciousness and cultural reverence for nature weave together, EVs symbolize a harmonious dance between tradition and modernity, where progress and tradition blend like nature’s orchestration.
Time is turning, and EVs are ushering in a new age of sustainable transportation in Vietnam. EVs fly like the magnificent dragon in Vietnamese legend, shedding a dazzling light on the horizon of possibilities and illuminating a future where innovation and sustainability mingle like jasmine vine tendrils. Electric vehicles’ quiet hum on Hanoi’s busy streets and Hue’s peaceful alleys show Vietnam’s commitment to advancement. EVs lead a revolutionary journey where the past and future collide in a kaleidoscope of promise.
In Vietnam’s cultural mix, EVs represent the irrepressible spirit of innovation, where progress grows from tradition. As the petals of possibility unfold, Vietnam embarks on a journey where the wheels of change propel the nation toward a brighter, greener tomorrow, where the symphony of progress reverberates with the timeless melodies of tradition, whispering hope through time.
