Vietnam in the EV Conversation: Emerging Power in the Global Electric Vehicle Race
As the world shifts toward sustainable mobility, Vietnam is no longer sitting on the sidelines. With strong investment from domestic automakers, growing government support, and rising consumer interest, Vietnam is steadily carving out its role in the global electric vehicle (EV) landscape.
1. The rise of local manufacturers
VinFast is the trailblazer in Vietnam’s EV revolution. Within just a few years, the company has launched a full EV lineup — from electric cars (VF e34, VF8, VF9) to electric scooters (Klara, Feliz). VinFast has also built an expansive charging network across all 63 provinces, signaling its global ambitions with a successful IPO in the U.S. in 2023.
Other Vietnamese firms like THACO Auto and TC Motor are also exploring EV ventures, laying the groundwork for a competitive domestic market.
2. A shifting consumer mindset
Vietnamese consumers are increasingly drawn to greener transportation. According to a 2024 Q&Me survey, over 65% of young consumers are willing to consider buying an EV — provided the charging infrastructure and government incentives continue to improve. Key drivers include lower operating costs, quieter performance, and environmental friendliness.
3. Strong policy push from the government
The Vietnamese government is actively promoting the electrification of transportation. Some major policy measures include:
- Waiving registration fees for EVs on first-time purchase
- Reducing registration tax by 50% compared to gasoline vehicles
- Planning over 150,000 public charging stations by 2030
- Tax incentives for battery and EV component manufacturers
These policies are aligned with Vietnam’s pledge to reach net-zero emissions by 2050, made at the COP26 climate summit.
4. Vietnam as a potential EV manufacturing hub in ASEAN
With advantages in labor cost, manufacturing capacity, and strategic location, Vietnam is becoming an attractive destination for EV investment. Giants like Foxconn (Taiwan), LG Energy Solution (South Korea), and others have already set up operations in provinces such as Bac Giang, Hai Phong, and Vung Tau to produce EV batteries and components.
Given sustained momentum, Vietnam could replicate Thailand’s past success with gasoline vehicles and become the EV production hub of Southeast Asia.
5. Challenges to overcome
Despite its promise, Vietnam’s EV ecosystem still faces notable challenges:
- Charging infrastructure is uneven, especially in rural and less-developed regions
- EV prices remain high relative to the average consumer’s income
- Shortage of skilled EV technicians and engineers, affecting maintenance and after-sales service quality
6. Conclusion
Vietnam is on track to becoming a key player in the global EV movement. With synchronized efforts from local businesses, government backing, and rising consumer awareness, the country is well-positioned not only to adopt but also to export electric vehicles.
In the near future, every EV rolling on Vietnamese roads could represent more than just a mode of transport — it will symbolize progress, innovation, and a firm commitment to a greener, more sustainable future.
