Vietnam’s landscape for transportation is undergoing a pronounced move towards electric vehicles (EVs) and hybrids, marking a notable stride in consumer preferences for environmentally friendly transport solutions. Propelled by government incentives, including exemptions on registration fees and reductions in special consumption tax, the trajectory towards electrification is advancing at an impressive rate.
The statistics from 2019 to September 2023 reveal a dramatic increase from 138 electric vehicles to over 28,000, complemented by 3,557 hybrid vehicles. This surge is supported by the adoption of over two million electric motorbikes, highlighting a national pivot to sustainable mobility options.
Projections for Vietnam’s electric vehicle market beyond 2024 signal an optimistic expansion. With the entrance of both domestic and international manufacturers like VinFast into the market, there is a concerted move towards electric and ‘green’ energy-powered vehicles.
Vietnam’s roads are witnessing an increasing diversity with hybrid models from global leaders such as Honda, Kia, Hyundai, BMW, and Toyota. Models such as the Honda CR-V, Kia Sorento, and Toyota Yaris Cross offer consumers a spectrum of choices, contributing to the dynamic growth of the electric vehicle market.
Chinese manufacturers are strategizing a return to the Vietnamese market with new electric and hybrid models. Their long-term development strategies include significant investments in local manufacturing and assembly operations, indicating a robust commitment to Vietnam’s green transition.
Despite the government’s comprehensive regulatory support for electric vehicle adoption to counter air quality degradation and promote green economic growth, obstacles remain. These include limited awareness among businesses regarding the transition to green energy, an embryonic charging infrastructure, and the absence of adequate mechanisms to stimulate electric vehicle consumption and usage.
A recent electrified vehicle exhibition in Hà Nội
offered an immersive experience with EV technology, showcasing a variety of electrified vehicles and accessories from prominent brands. This event provided a concrete glimpse into the transformative potential of transportation in Vietnam.
The Vietnam Automobile Manufacturers Association (VAMA) emphasizes the critical nature of this shift, noting the significant cost barrier presented by expensive battery technology. VAMA advocates for a strategic approach to ensure market stability, with VAMA’s Policy Subcommittee leader, Nguyễn Trung Hiếu, expressing confidence in the sustained growth of electric vehicle adoption into 2024 and beyond.
The introduction of Chinese manufacturers is anticipated to enrich the sector, expected to augment the electric vehicle segment without significantly impacting the market presence of local behemoths like VinFast, which targets consumers transitioning from traditional to electric vehicles.
Automotive expert Lê Trường Giang anticipates the trend towards electric cars will not only persist but intensify into 2024, with the debut of numerous new models in the local marketplace. This trend mirrors a global movement towards electric vehicles, reflecting the industry’s resilience and capacity for innovation in addressing contemporary challenges.
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