Brian Jeffrey
Vietnam’s Electric Vehicle Surge and Its Impact on Power Demand
The swift rise of electric vehicles (EVs) in Vietnam is leading to a significant increase in electricity demand for charging stations. Pricing for these stations is anticipated to fall between commercial and industrial electricity rates, with the peak potential rate reaching 4,937 VND/kWh (about $0.20).
VinFast, the top EV manufacturer in Vietnam, announced it sold over 87,000 electric vehicles in 2024, far exceeding its targets. This achievement reinforces VinFast’s status as the leading EV brand in the country and lays the groundwork for growth in 2025.
The growing interest in EVs has prompted Hanoi’s local government to collaborate with VinGroup in promoting sustainable transportation. As part of this initiative, VinFast is providing financial assistance of up to 70 million VND ($2,900) for EV owners who register their cars in Hanoi during the period of January 10, 2025, to January 31, 2026.
These incentives are expected to enhance the adoption of EVs, aligning with Vietnam’s goal of achieving net-zero greenhouse gas emissions by 2050. Developing the necessary infrastructure, especially charging stations, is critical for this transition.
Currently, EV charging accounts for only 0.031% of the nation’s commercial electricity output. However, this figure is predicted to rise significantly in the coming years.
V-Green, a firm focused on charging station development, estimates that electricity demand for EV chargers may surge by 277.31% from 2025 to 2030 and further increase by 9.13% from 2030 to 2035. By 2035, the demand for EV charging could reach 2.2 billion kWh annually, comparable to the electricity consumed by Vietnam’s tourism sector in 2023.
The Ministry of Industry and Trade is in the process of determining electricity rates for EV charging. Feedback has varied, with opinions split on whether these rates should fall under industrial or commercial classifications.
Views on EV Charging Rates
Support for commercial rates: Organizations like Vietnam Electricity (EVN), the Hanoi Power Corporation, and consumer rights groups advocate for commercial pricing, suggesting a peak rate exceeding 4,900 VND/kWh ($0.20).
Support for industrial rates: Some, including the Ministry of Transport and VinFast, propose industrial rates, where the maximum would be 3,314 VND/kWh ($0.14).
Neutral suggestions: Other stakeholders recommend a unique pricing structure to reflect the actual operational costs and align with international standards.
The ministry has proposed a distinct electricity pricing category for EV charging that would sit between commercial and industrial rates, based on actual costs without subsidization.
This approach aims to mirror the genuine costs of electricity production and distribution, avoiding subsidies.
Countries like South Korea, the United States, and Thailand have adopted specific electricity rates for EV charging, using cost-based methodologies. They also offer support through tax incentives, governmental subsidies, and administrative policies to encourage EV uptake.
The ministry indicates that charging stations operating under industrial rates would incur costs 552–699 VND/kWh ($0.023–$0.029) below the average system cost, varying by voltage. In contrast, stations classified under commercial rates would pay an additional 467–587 VND/kWh ($0.019–$0.025).
This tailored pricing system aims to promote equity while facilitating Vietnam’s transition to green energy and addressing the escalating demand for EV infrastructure.
