Brian Jeffrey
Finding charging stations in Vietnam can be quite challenging, and there are security concerns that prevent many parking facilities from accepting electric vehicles (EVs).
A recent report highlighted a dramatic rise in the global new-energy vehicle market, which grew from 7.3 million in 2019 to 40.5 million by 2023. Vo Minh Luc, CEO of BYD Vietnam Automobile, described this trend as “lightning-fast growth.”
In China, the annual growth rate of EVs ranged from 70 to 100 percent between 2019 and 2023. Thailand saw its EV market share increase from 1 percent in 2022 to 12 percent in just one year later, in 2023.
Despite growing sales of EVs in Vietnam, they still represent a minimal portion of the total 300,000 vehicles sold annually.
Luc is optimistic about Vietnam’s green vehicle market potential. With a population of 100 million, largely consisting of young individuals, Vietnam offers a significant market opportunity.
The current car ownership rate in Vietnam is relatively low, at 55 vehicles per 1,000 people, especially when compared to Thailand and Indonesia.
Each year, around 3 million motorbikes are sold in Vietnam, indicating a strong desire among motorbike owners to transition to cars, further showcasing the market potential for automobiles and electric vehicles.
The rapid advancement of Vietnam’s transport infrastructure, particularly highways, is encouraging more people to switch from bikes and motorbikes to cars. EVs are also economical, with an average monthly charging cost of VND1 million, far below gasoline expenses.
Despite the opportunities, Luc recognizes the challenges in promoting EVs within Vietnam. A primary concern is the limited availability of charging stations.
He argues that this issue must be addressed, as several residential areas lack charging infrastructure.
Many parking lots and residential buildings refuse entry to EVs, mainly due to safety concerns.
Currently, policies that promote vehicle use tend to favor gasoline cars, allowing buyers of traditional vehicles to borrow 80 percent of the car’s value, while EV purchasers can only borrow 70 percent.
Le Xuan Nghia, Director of the Institute for Carbon Finance Development Consulting (CODE), asserts that government support for the green vehicle sector is essential, suggesting reductions in luxury taxes, VAT, and tolls, as well as the development of more charging stations.
