Vietnam leads ASEAN in EV market growth

Vietnam leads ASEAN in EV market growth

Vietnam is emerging as a regional frontrunner in the transition to electric mobility, driven by rapid market growth and rising electrification.

According to the ASEAN-6 eReadiness Report released by PwC Vietnam on January 9, Vietnam is the fastest-growing and 'most electrification-driven' electric vehicle (EV) market among ASEAN’s six major automotive markets. The report assesses EV readiness, consumer behaviour, and infrastructure maturity across Indonesia, Malaysia, Thailand, the Philippines, Vietnam, and Singapore.

The region is undergoing a rapid transformation, where electrification is accelerating at an unprecedented pace and consumer interest continues to surge, even as major variations persist across markets. While Singapore maintains its position as ASEAN’s most e-ready country, and the Philippines remains in the early stages of maturity, Vietnam has emerged as the most dynamic and high velocity outlier in the region.

The report shows that EV adoption continues to accelerate, with sales of electrified vehicles, (xEVs) – a broad category that includes hybrids, plug-in hybrids, and battery-electric models – rising 62 per cent on-year as of the third quarter of 2025.

Singapore remains the most e-ready market in ASEAN with an index score of 4.3/5.0, while the Philippines sits at the lower end of the maturity spectrum.

Vietnam stands out as one of the region’s fastest expanding automotive and EV markets. Supported by strong government incentives, including 100 per cent registration fee exemption for EVs through 2027 – the country is experiencing an electrification wave unmatched in ASEAN. Vietnam’s 33 per cent xEV share is well above the ASEAN-6 average (17 per cent) and second only to Singapore (72 per cent). Thailand stands at 30 per cent; Indonesia at 18 per cent; Malaysia and the Philippines at 4 per cent each.

Vietnam’s total vehicle sales surged 18 per cent on-year, outpacing most regional markets. The most striking development is the 84 per cent growth in xEV sales, which now account for 33 per cent of all vehicles sold, one of the highest shares in ASEAN. VinFast has emerged as the leading xEV brand in ASEAN-6; its sales rose from 56,000 units in the third quarter of 2024 to over 100,000 a year later, driven primarily by demand in Vietnam.

Consumer sentiment towards EVs in Vietnam is among the most positive in the world. However, PwC's data reveals a critical vulnerability in the post-purchase experience that threatens long-term adoption. 15 per cent of consumers already own an EV (highest in ASEAN) and EV sceptics account for only 5 per cent (lowest in ASEAN).

While Vietnamese consumers are eager to buy EVs (79 per cent), the actual ownership experience is falling short for a significant portion of them. The high rate of owners considering a return to petrol-powered vehicles due to maintenance costs is a major red flag, indicating that winning the initial sale is only half the battle. A concerning 42 per cent of current Vietnamese EV owners would consider switching back to a petrol vehicle for their next purchase, with 62 per cent citing higher than expected maintenance costs as the primary driver of dissatisfaction. This represents one of the highest reversion risks in the region.

Despite scoring high on the index for government incentives score: 4.0/5.0) and high consumer demand (3.7/5.0), Vietnam’s physical infrastructure lags, with an infrastructure score of 2.1/5.0. Regarding infrastructure readiness, it lags significantly in relative to Thailand (2.5) and Singapore (4.3).

For Vietnamese EV sceptics, the top concerns are – limited driving range (54 per cent), uncertainty around battery lifetime (49 per cent) and recharging time (35 per cent). This imbalance threatens to constrain the market’s long-term momentum despite its strong head start.

The report also highlights a mismatch between consumer charging habits and infrastructure maturity. Fast charging solutions are preferred across ASEAN-6, with availability, location, and pricing/tariffs ranking as the top dissatisfaction areas for EV owners. In Vietnam, a significant portion of EV owners in Vietnam do not have access to private home charging, making them heavily reliant on a public network that is still underdeveloped. 70 per cent of Vietnamese EV owners charge primarily at their office, on the street, or at other public locations like shopping malls, the highest rate in ASEAN.

VIR