Electric vehicle market share in Vietnam: Development trends and challenges

DNHN - The global automotive industry is transitioning from internal combustion engines to electric vehicles, aiming to reduce pollution and protect the environment. In Vietnam, the electric vehicle is growing rapidly, but it also faces many challenges.

It is known that the Government has committed to a green future through the Green Energy Transformation Action Program, with the goal of having all road vehicles use green energy by 2050. This is not only a commitment to sustainability but also an important political directive, promoting the use of electric vehicles (EVs) in industries and consumer communities. Government incentives, tax exemptions, and infrastructure development (such as EV charging stations) can accelerate consumption, making Vietnam an attractive market for global electric vehicle manufacturers.

In recent years, the development of the electric vehicle market in Vietnam has attracted the attention of many leading global automakers. Government support policies and environmental awareness have created favorable conditions for the development of electric vehicles in Vietnam.

One of the key factors driving this development is the reduced production cost of electric vehicles. Along with advancements in battery technology and electronic components, the cost of producing electric vehicles has significantly decreased. This has made electric vehicles more popular and competitive compared to internal combustion engine vehicles.

Additionally, the Government's policies encouraging the purchase of electric vehicles have contributed to increasing the market share of electric vehicles in Vietnam. Reduced import taxes and preferential tax rates have lowered the prices of electric vehicle models, attracting consumer interest. Many automakers have launched promotional programs and financial support to stimulate demand for electric vehicles.

However, Vietnam's electric vehicle transition journey, despite its great prospects, still faces challenges that need to be addressed to ensure a smooth transition and widespread use of electric vehicles (EVs).

According to SSI Research, challenges in the electric vehicle market include high costs, limited range after each charge, and a shortage of charging station infrastructure and repair centers. To boost demand, SSI Research suggests the Government should implement more incentive policies, including reducing the special consumption tax by 12% and exempting registration fees for electric vehicles. Businesses involved in assembling and distributing electric vehicles could greatly benefit from these policies in the future.

Although the electric vehicle market share in Vietnam is developing, many challenges need to be overcome to achieve a sustainable future for the electric vehicle industry.

One of the biggest challenges is the charging infrastructure. Building a sufficiently extensive and convenient charging infrastructure network is a crucial task to meet the charging needs of electric vehicles. Currently, the charging infrastructure system in Vietnam is still limited and does not meet user demand. This can reduce the accessibility and use of electric vehicles.

Another challenge is the range limitation. Although battery technology has improved significantly, electric vehicles still have a limited range compared to internal combustion engine vehicles. This can cause concerns and limit consumer choices, especially for those who need to travel long distances.

Additionally, there are other challenges such as limitations in traffic infrastructure, the development of autonomous vehicle technology, and the business and maintenance operations of electric vehicles. All these issues require investment and improvement to create a favorable environment for the development of electric vehicles.

Despite facing challenges, the electric vehicle market share in Vietnam has potential for future development. The Government has committed to promoting the use of electric vehicles through support and incentive policies. Strengthening charging infrastructure and developing battery technology will help address some of the current challenges. Government support policies and environmental awareness have created favorable conditions for the development of electric vehicles in Vietnam.

Furthermore, consumers are gradually becoming aware of the benefits of electric vehicles and the importance of environmental protection. These trends will drive the demand for electric vehicles and create a potential market for automakers.

Thus, despite many challenges, the electric vehicle market share in Vietnam is developing and bringing many opportunities for the automotive industry and environmental protection. Government support and consumer awareness of electric vehicles will play an important role in promoting the growth of this market. With investment in infrastructure and technology, electric vehicles can become an indispensable part of Vietnam's transportation landscape and contribute to global environmental protection goals.

Dai Hai