Electric two-wheeler market growth in Vietnam: An overview

Electrifying Vietnam’s two-wheeler vehicles (2Ws), the main transport mode in the country, is a promising approach to reducing GHG emissions and air pollution there. In this paper, we take a close look at the readiness of and potential for mass deployment of electric two-wheelers (E2W) in the country. The analysis is from the perspective of manufacturers, who are the chief drivers of incentive policies for E2W manufacturing in the country. This briefing first provides an overview of 2W market sales in Vietnam. Vietnam’s 2W market has contracted since 2018, from 3.6 million vehicles in 2018 to 2.8 million in 2021, the lowest level in 15 years. Although the 2W market declined, the market share of E2Ws increased significantly and reached 10% in 2021. The paper also reviews the major 2W manufacturers in Vietnam, their production capacities, and E2W development plans. We also review the development of charging infrastructure, the E2W industry and its supply chains, and the policy context for promoting E2Ws in the country. The key messages from this paper are summarized here:

• The two-wheeler market in Vietnam is facing market saturation
• Vietnam’s electric 2W market is the second largest in the world and the largest and fastest growing in the ASEAN region (see Figure)
• Several brands dominate the two-wheeler market
• Vietnam’s existing production capacity of ICE 2Ws and E2Ws can support Vietnam becoming a substantial exporter of ICE 2Ws and E2Ws
• The E2W market is dominated by local brands
• Vietnam could become a leader in manufacturing E2Ws and E2W parts in the ASEAN region with proper support from the government
• Vietnam’s E2W market penetration is high, but most E2Ws use lead-acid batteries
• On the demand side, policies to support E2W ownership and usage as well as the E2W industry are not yet available

Figure. E2W market share in key ASEAN countries, 2019 and 2020

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