Electric Cars in Vietnam: An Untapped Market with High Potential

According to a report by HSBC Bank, Vietnam’s electric vehicle market is poised for growth, with sales projected to reach 2.5 million units by 2036. However, the bank estimates that the country will need an investment of about 12.3 billion USD to build enough charging stations to support the popularity of electric cars in the country.

The report “Vietnam At A Glance: The Story of Electric Vehicles” by HSBC highlights the untapped potential of Vietnam’s electric car market, especially considering that more than 60% of people own motorbikes and only 5.7% own cars. The lack of charging stations on highways presents a barrier to widespread adoption of electric vehicles, which could be addressed by investing in charging infrastructure in key areas.

To address price barriers, Vietnam has implemented tax policies and subsidies for electric car buyers, which have led to progress in the sector despite some challenges. However, manufacturers may face challenges in popularizing electric cars due to users’ hesitancy caused by the lack of charging stations and high battery and car prices.

In addition to electric cars, the electric motorbike market in Vietnam is also forecasted to thrive due to affordability and a high localization rate. Vietnamese people are more familiar with motorbikes than cars, which contributes to the potential growth of the electric motorbike market. Domestic manufacturers are expected to play a significant role in the electrification of two-wheeled vehicles, with sales forecasted to increase significantly by 2036.

Overall, addressing infrastructure, price, and ecosystem challenges will be crucial for Vietnam’s transition to green transportation in the coming years.