E-vehicle infrastructure financing for high growth

E-vehicle infrastructure financing for high growth

The next phase of high growth is opening a window to develop electric vehicle charging infrastructure nationwide as a bankable asset class, provided financing and market frameworks evolve in step with rising demand.

Dr. Nguyen Tien Viet, senior research economist, Centre of Economic Performance, London School of Economics and Political Science

Vietnam’s growth ambitions and climate commitments are increasingly shaping investment priorities across the economy, with electric vehicle (EV) charging infrastructure emerging as a practical focal point for long-term capital deployment. Rather than being driven solely by environmental objectives, the expansion of charging networks offers a pathway to support sustained growth while preserving fiscal discipline and strengthening energy resilience.

This opportunity is reinforced by strong demand fundamentals. By 2030, Vietnam could have around one million EVs on the road, rising to approximately 3.5 million by 2040. Applying a conservative benchmark of one public charger for every 10 vehicles implies demand for roughly 100,000 chargers by 2030 and 350,000 by 2040, creating clear scope for predictable revenue models and investment structures that can attract both domestic and international investors.

Beyond emissions reduction, the economic rationale is equally compelling. Every kilowatt-hour delivered through EV chargers reduces dependence on imported oil, improves the balance of payments, and strengthens energy security. As renewable energy penetration increases, EV charging can also provide flexible demand that helps absorb clean electricity. Scaling charging infrastructure therefore sits at the intersection of Vietnam’s growth ambitions, capital mobilisation, and energy transition objectives.

European experience shows that EV charging networks do not scale organically without a stable and predictable framework. In the European Union, long-term targets for EV deployment and charging density have provided investors with clarity on demand trajectories, reinforcing confidence in long-term revenue potential.

Standardised technical requirements covering connectors, communication protocols, and interoperability have reduced market fragmentation and enabled competition based on service quality and operational efficiency rather than proprietary systems. Targeted public support has played a catalytic role, particularly during early deployment phases or in locations where commercial returns are initially uncertain.

Critical operations

Vietnam already has an encouraging starting point. Around 150,000 chargers have been deployed nationwide by the leading domestic EV manufacturer across highways, urban centres, residential areas, and commercial hubs. This network has improved convenience and demonstrated early commercial viability, helping to build user confidence in EV adoption.

However, the existing network remains largely brand-specific, limiting access for other EV users and constraining broader private investment. Moving from a single-operator model to an open, multi-operator ecosystem will be critical if charging infrastructure is to support mass adoption and attract international capital. Open access and interoperability are not only technical considerations, but financial ones, as they reduce demand risk and improve the bankability of charging projects.

To manage risk while mobilising private investment, Vietnam can adopt clearer and more predictable project structures. A ready-made model, under which utilities are responsible for grid connections and transformers while private operators install chargers, payment systems, and monitoring software, can reduce upfront uncertainty and accelerate deployment.

For less commercially attractive locations, viability gap funding combined with competitive reverse auctions, as applied in countries such as the Netherlands, Germany and France, can lower financial risk while still maintaining cost discipline.

Given limited fiscal space, the expansion of charging infrastructure will depend heavily on blended finance and public-private partnerships. Concessional loans, guarantees, or first-loss capital from development partners can help de-risk projects and crowd in commercial investors, while private operators retain responsibility for construction and operations. Official development assistance and climate funds can support early-stage or lower-return sites, but the emphasis should remain on commercially viable projects to ensure long-term sustainability and minimise reliance on public budgets.

Bundling charging projects with renewable energy or smart-grid initiatives can further enhance bankability. From an investor perspective, projects that combine predictable charging revenues with grid services or renewable integration offer more stable cash flows than standalone assets. Clear project pipelines, transparent governance arrangements, and measurable performance indicators will be essential to ensuring that public support accelerates deployment without weakening financial discipline.

Scaled nationwide

European experience also highlights the importance of aligning charging deployment with grid capacity and renewable generation. Vietnam can apply this principle pragmatically by embedding charging infrastructure planning within broader energy and environmental strategies. In the near term, dynamic tariffs can respond to periods of peak demand, encouraging charging when the system is under less stress.

Over time, pricing mechanisms can be refined to align charging behaviour with periods of high renewable output, such as midday solar generation or windy nights.

Pilot projects in major cities and along key transport corridors can demonstrate commercial and technical feasibility before being scaled nationwide. Close coordination with the energy regulator will be required to prioritise grid upgrades in high EV-density areas, ensuring reliability while avoiding unnecessary investment. Cross-sectoral coordination linking transport, power, and emissions targets can generate measurable co-benefits and strengthen Vietnam’s net-zero pathway.

Balanced growth in EV supply and demand will require coordinated incentives and regulatory measures. On the demand side, tax reductions, registration incentives, and targeted subsidies can encourage early adoption, while fleet electrification programmes for taxis, ride-hailing services, and government vehicles create visible and predictable demand. Low-emission zones in urban centres can further accelerate uptake by making EVs the most practical option for daily mobility.

On the supply side, charging infrastructure should be strategically distributed across urban areas, transport corridors, and residential clusters. Communal charging solutions will be particularly important for apartment buildings in major cities, supported by smart load management to prevent local grid congestion. Requirements for new developments to be EV-ready, combined with utility support for grid connections, can help ensure infrastructure scales in line with vehicle adoption.

Vietnam is well-placed to apply international experience while avoiding the fragmentation seen in other markets. Prioritising standardisation, open access, and integration with energy planning would reduce investor risk and lower the cost of capital. Mobilising international finance will therefore be central to scaling EV charging infrastructure in line with Vietnam’s next phase of high growth, allowing charging networks to evolve into a viable infrastructure asset class with predictable returns and wider macroeconomic benefits.

VIR