Vietnam EV market projected to reach $5-7bn in next 5 years
Vietnam EV market projected to reach $5-7bn in next 5 years
Electric vehicles (EVs) are gaining attention in Vietnam as more consumers shift toward eco-friendly transportation, with RMIT University Vietnam forecasting the market could reach a value of $5-7 billion in the next five years.
Consumers have a look at a VF3 car of VinFast at skyscraper Landmark 81 in Ho Chi Minh City. Photo: Cong Trung / Tuoi Tre |
Local consumers have begun to consider environmental protection as one of the important motivations when deciding to buy a car, Dr. Nguyen Son, a lecturer in logistics and supply chain management at RMIT University Vietnam, said in the university’s latest report.
This is in line with the global trend towards sustainable transportation and is also the result of communications and education about environmental protection.
Policies such as registration fee exemption and reduced import taxes have also made EVs more attractive to consumers while the operational costs of EVs are generally quite competitive when compared to conventional vehicles, especially in the context of rising fuel prices.
According to Son, VinFast's success in the EV market is likely to have a significant positive impact on both domestic and foreign investors, proving Vietnam's growing EV industry is a great opportunity for larger investment funds to participate in.
Amid this trend, upgrading the grid infrastructure and strategic government intervention are needed to further enhance the competitiveness of the EV industry, according to experts.
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| RMIT University Vietnam forecast the Vietnamese EV market could reach a value of $5-7 billion in the next five years in its latest report. Photo: Cong Trung / Tuoi Tre |
VinFast is pioneering the green revolution in transport with audacious moves, from building a charging station network and promoting ride-hailing services using electric motorbikes and cars.
VinFast’s sales reached 16,000 EVs last month, increasing the number of its EVs sold in the domestic market since early this year to over 67,000.
VinFast was followed by South Korea’s Hyundai with over 10,300 vehicles delivered and Japan’s Toyota with some 8,900 units sold.
Even the monthly sales of the best-selling car brand in 2022, the peak year of the Vietnamese auto market, could not exceed 11,000 vehicles.
VinFast’s sales in November this year surged over 40 percent month on month.
According to Duong Thi Thu Trang, global deputy CEO of sales at VinFast, the result proved that Vietnamese consumers are showing a stronger preference for environmentally-friendly transport modes.
Besides VinFast, TMT Motor, BYD, MG, Mercedes-Benz, BMW, Porsche, and Audi are actively expanding their presence in Vietnam, making the market more bustling and providing consumers with more options.
However, charging stations and the grid's capacity remain major obstacles.
To date, VinFast has installed more than 150,000 charging ports, meeting a ratio of 15 charging ports per 10,000 people.
