Brian Jeffrey
An investment report by the Center for Strategic and International Studies (CSIS) reveals that China has heavily invested $230.8 billion in the electric vehicle sector over the past decade. The Chinese government has provided substantial support, contributing to 18.8% of electric vehicle sales between 2009 and 2023.
With significant government backing, China’s electric vehicle industry has thrived, with 4.91 million automobiles exported in 2023, predominantly electric vehicles.
Major Chinese auto manufacturers, such as BYD, Geely, Chery, Great Wall, SAIC, and Wuling, are establishing a strong presence in Vietnam.
Recognizing Vietnam as a key market due to its large population and tech-savvy, environmentally conscious younger demographic, BYD views Vietnam as a strategic market for electric vehicles.
The Ministry of Industry and Trade (MOIT) anticipates that by 2030, Vietnam’s market will have 1 million vehicles, with projections reaching 1.5-1.8 million post-2035.
Vietnam has set ambitious targets to reduce greenhouse gas emissions and promote the adoption of clean-energy vehicles, with a planned transition to electric and green energy vehicles by 2050.
Chinese electric vehicle manufacturers are positioning themselves to capitalize on these opportunities in Vietnam.
Wuling and TMT Motors have teamed up to assemble electric mini cars in Vietnam, with plans for further collaborations. Chery is partnering with Geleximco to establish a joint venture for electric vehicle production.
Collaboration agreements are also being made by SAIC and other Chinese manufacturers to set up assembly factories in Vietnam.
Forecasts indicate a surge in sales agents representing Chinese automakers in Vietnam, with BYD, Chery, and SAIC leading the expansion efforts.
To address concerns about charging infrastructure limitations, Chinese companies are exploring partnerships to develop shared charging networks in Vietnam.
The Vietnamese government is incentivizing the adoption of electric vehicles with tax exemptions and reductions, aiming to boost the usage of green-energy vehicles.
Experts suggest the need for revised policies to further incentivize the shift towards green-energy vehicles in Vietnam.
Vietnam’s automotive industry development strategy, set to be finalized by the Ministry of Industry and Trade, emphasizes the importance of the auto industry in socio-economic development and environmental conservation.
The ministry plans to offer incentives to promote the development and adoption of fuel-efficient and green energy vehicles in line with the strategic vision.
Chinese manufacturers stand to benefit from these incentives in both China and Vietnam, provided they address existing consumer biases towards Chinese product quality.
