Vietnam’s journey towards a cleaner and greener future is accelerating at an astonishing pace, with electric vehicle (EV) adoption marking a significant milestone. A report has shed light on the country’s inspiring leap from 2.9% EV adoption last year to an expected 13.6% by 2030.
The nation is geared up for an electrifying decade ahead, with electric vehicle sales projected to grow by 25.8% annually over the 2023-2032 period. An impressive increase to 65,000 units by 2032 marks an eight-fold rise from 2022, BMI Research, a unit of Fitch Solutions, has noted.
The key players in this promising transformation include domestic and international giants like VinFast, Wuling HongGuang, Skoda, and Hyundai. Their combined efforts are expected to drive the market’s robust growth from 2023-2032.
This year’s sales are already on an upward trend, with a projected 115% rise from last year, taking the tally to around 18,000 units.
One can’t ignore the government’s supportive role, which announced a tax-free policy on completely built-up units imported from ASEAN until the end of 2027. This encouraging initiative will undoubtedly boost regional imports, as per BMI.
The homegrown hero, VinFast, accounting for over 50% of the domestic passenger EV market, is leading the charge. The announced expansion plans by Chinese companies to establish factories in Vietnam will further fuel the supply.
Moreover, TMT Motors’ production of the mini EV under the Chinese brand Wuling HongGuang will supplement the domestic passenger EV segment. Their facility is expected to roll out 30,000 units in its first phase and 60,000 in its second.
The public is also witnessing a surge in eco-consciousness with the launch of Green SM taxi firm, employing VinFast EVs exclusively. This move is bound to raise awareness and encourage wider EV adoption.
An expansion in Vietnam’s EV charging network is underway, and while VinFast is currently the frontrunner, several new contenders will join the competition from this year onwards.
In a welcome move, Foxconn has announced a $250 million investment to build an EV charging and component production plant in Vietnam. This vital investment is poised to facilitate a rapid growth of the charging industry.
Indeed, Vietnam is not merely adopting the global trend of electric vehicles but shaping a future that is ecologically sound and economically vibrant. This revolutionary path shows a nation ready to embrace the future with innovation, determination, and foresight.