Promoting the development of electric vehicles in Vietnam
Vietnam has the potential to become a leader in EV demand and EV production in the Association of Southeast Asian Nations (ASEAN) region, especially in the electric two-wheeler (E2W) market. The country’s E2W market is the second largest in the world (after China’s) and the largest and fastest growing in the ASEAN region, and the market for electric passenger cars (EPVs) is increasing significantly. (Figure.) Local manufacturers dominate the EPV and E2W markets in the country. However, more actions are needed for the country to fully realize its potential capacity in the EV market and EV production.
In July 2022, the Vietnamese government announced Decision No. 876/QĐ-TTg approving the Action Program on Green Energy Transition and Reducing Carbon and Methane Emissions in the Transport Sector, which aims to achieve net-zero emissions in the transport sector by 2050. The decision sets specific national objectives related to promoting electric vehicle development, including:
- In the first period, from 2022 to 2030, promoting production, assembly, import, and use of electric vehicles (EVs) and developing charging infrastructure;
- In the second period, from 2031 to 2050, ending, by 2040, the production, assembly, and import of fossil-fueled cars, motorcycles, and mopeds for domestic use; and by 2050, requiring that 100% of road motorized vehicles be powered by electric and green energy, and developing a charging infrastructure system across the country to meet the demand of people and businesses.
This paper reviews current EV production and its supply chain, EV demand, and EV charging infrastructure in the country to provide recommendations for accelerating EV development. Accelerating EV development not only contributes to achieving the country’s climate goals, reducing GHG emissions, and improving air quality, but also supports the country’s economic development. The paper will focus mainly on E2Ws and EPVs.