Vietnam Electric Vehicle Market Size Booming at Robust CAGRs to Reach Value of USD 5.4 Billion and Volume of 1.8 Million Units by 2030

Published | 15 March 2024

Vietnam Electric Vehicle Market is flourishing due to the government’s supportive initiatives and incentives, rising adoption of technological advancements, and volatile fossil fuel prices.

BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated the Vietnam Electric Vehicle Market size by value at USD 2.82 billion in 2023. During the forecast period between 2024 and 2030, BlueWeave expects the Vietnam Electric Vehicle Market size to expand at a CAGR of 14.55% reaching a value of USD 5.39 billion by 2030. Vietnam Electric Vehicle Market is propelled by the growing consumer interest in fuel-efficient and low-emission vehicles, stringent regulatory frameworks, and a rise in government backing. Vietnam, as one of Southeast Asia's fastest-growing economies, demonstrates a steadfast government commitment to establishing itself as a leader in sustainable transportation. The government has set ambitious targets for electric vehicles (EVs), aiming for them to constitute 10% of all new vehicle purchases in Vietnam by 2030. Private enterprises play a pivotal role in propelling Vietnam into the e-mobility sector, transitioning from a focus on electric scooters to achieving a significant milestone as the first Southeast Asian country with a successful domestic electric car manufacturing company. This accomplishment positions Vietnam to potentially surpass neighboring countries like Thailand and Indonesia in EV growth and challenge China's dominance in the sector. The thriving middle class in Vietnam, characterized by a keen interest in cutting-edge technologies, fuel efficiency, and environmental consciousness, presents a substantial opportunity for robust double-digit growth in the country's EV market over the forecast period.

By volume, BlueWeave estimated the Vietnam Electric Vehicle Market size at 1.2 million units in 2023. During the forecast period between 2024 and 2030, BlueWeave expects the Vietnam Electric Vehicle Market size by volume is projected to grow at a CAGR of 13.62% reaching the volume of 1.8 million units by 2030. Presently, Vietnam is actively advancing towards a future characterized by sustainable mobility, as reflected in the government's initiative outlined in the Green Energy Transformation Action Program. This strategic plan aims to achieve the ambitious target of making all vehicles on the road powered by green energy by 2050, aligning with the country's commitment to achieving net-zero emissions.

Opportunity - Growing environmental awareness

The rising consumer consciousness surrounding environmental concerns and the enduring economic advantages of electric vehicles (EVs) contribute significantly to the accelerated adoption of such products. In Vietnam, consumers are increasingly mindful of the environmental repercussions associated with conventional gasoline vehicles and are displaying an elevated preference for sustainable and eco-friendly transportation alternatives. This heightened awareness, coupled with growing apprehensions about air pollution in major urban centers, is driving the demand for cleaner transportation solutions. Electric cars, characterized by zero tailpipe emissions, emerge as a practical remedy to address these environmental issues. This transformative shift in consumer perspectives holds paramount importance for fostering the acceptance and expansion of the electric car market in Vietnam.

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Impact of Escalating Geopolitical Tensions on Vietnam Electric Vehicle Market

Geopolitical tensions can have a multifaceted impact on the Vietnam Electric Vehicle Market. Despite the nation's burgeoning role in the electric vehicle (EV) industry, challenges arise amidst escalating geopolitical uncertainties. Vietnam's ambitious plans to disrupt China's dominance in EVs, driven by a rapidly growing middle class and strategic investments in the EV supply chain, may face hurdles amid geopolitical complexities. The interplay of international dynamics could influence manufacturing, supply chain elements, and government initiatives crucial for sustaining Vietnam's momentum in the EV market. While the country holds significant potential, navigating geopolitical tensions becomes imperative for ensuring a resilient and thriving electric vehicle industry in Vietnam.

Vietnam Electric Vehicle Market

Segmental Information

Vietnam Electric Vehicle Market – By Propulsion Type

By propulsion type, the Vietnam Electric Vehicle Market is divided into BEV, HEV, PHEV, and FCEV segments. The BEV (battery electric vehicle) segment holds the highest share in the Vietnam Electric Vehicle Market by propulsion type. In the BEV model, the exclusive propulsion source is the battery, responsible for generating the power necessary for the vehicle. Dispensing with a conventional fuel tank, the BEV relies on a substantial battery to store the energy needed to operate its electric motor efficiently. Also, from a vendor perspective, BEVs offer several advantages. Notably, BEVs stand out as one of the most widely manufactured vehicle types, attributed to their simplified manufacturing process that demands less expertise and capital compared to Plug-in Hybrid Electric Vehicles (PHEVs). The streamlined structure of BEVs, incorporating only one motor and a battery, results in a model with fewer components, facilitating easier maintenance in comparison to counterparts. A significant environmental boon lies in BEVs' emission-free operation, earning them the designation of zero-emission vehicles. Consequently, these compelling benefits are anticipated to drive the demand for BEVs substantially over the forecast period.

Competitive Landscape

The Vietnam Electric Vehicle Market is fragmented, with numerous players serving the market. The key players dominating the Vietnam Electric Vehicle Market include VinFast, Me Linh Electric Car, CÔNG TY TNHH XE ĐIỆN XE MÁY DETECH, Honda Vietnam Company Ltd, Yamaha Motor Co., Ltd., TMT Motors, BYD, Selex Motors, and WU'S TECH CO., LTD. The key marketing strategies adopted by the players are facility expansion, product diversification, alliances, collaborations, partnerships, and acquisitions to expand their customer reach and gain a competitive edge in the overall market.

Don’t miss the business opportunity of the Vietnam Electric Vehicle Market. Consult our analysts to gain crucial insights and facilitate your business growth.

The report's in-depth analysis provides information about growth potential, upcoming trends, and the Vietnam Electric Vehicle Market statistics. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in the Vietnam Electric Vehicle Market along with industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.

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