Report Overview

Vietnam Electric Vehicle (EV) Market – Industry Trends & Forecast Report, 2030

Vietnam Electric Vehicle (EV) Market size by value was estimated at USD 2.82 billion in 2023. During the forecast period between 2024 and 2030, the Vietnam Electric Vehicle (EV) Market size is projected to grow at a CAGR of 14.55% reaching a value of USD 5.39 billion by 2030. Prominent drivers of the market are 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 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, the Vietnam Electric Vehicle (EV) Market size was estimated at 1.2 million units in 2023. During the forecast period between 2024 and 2030, the Vietnam Electric Vehicle (EV) Market size 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 the year 2050, aligning with the nation's commitment to achieving net-zero emissions.

Electric Vehicle (EV) – Overview

An electric vehicle (EV) refers to a type of vehicle that utilizes one or more electric motors for propulsion, relying on electricity stored in batteries or other energy storage devices. Unlike traditional internal combustion engine (ICE) vehicles that rely on fossil fuels, EVs are powered by electricity and produce little to no tailpipe emissions. There are different types of EVs, including battery electric vehicles (BEVs) that solely rely on electric power stored in batteries, and plug-in hybrid electric vehicles (PHEVs) that combine an ICE with an electric motor, allowing them to operate on both electricity and traditional fuels. The increasing popularity of EVs is driven by environmental concerns, efforts to reduce dependence on fossil fuels, and advancements in battery technology.

Vietnam Electric Vehicle (EV) Market

Growth Drivers

Government Initiatives and Incentives

Government initiatives and incentives are key catalysts in energizing the Vietnam Electric Vehicle (EV) Market. Despite the sector's initial reliance on private entities, the government has taken decisive steps at various levels. Notably, Decision No. 876/QĐ-TTg outlines the Action Program for Green Energy Transition, committing to a phased transition from fossil-fueled vehicles to complete reliance on electric and green energy by 2050. State-level policies, including fee reductions and consumption tax incentives for EVs, create a favorable environment for market growth. These incentives not only bolster the adoption of EVs but also attract investment, paving the way for a dynamic and thriving Electric Vehicle (EV) Market in Vietnam.

Adoption of Technological Advancements

The progression of technology is a key driver for the expansion of Vietnam Electric Vehicle (EV) Market. Improvements in battery technology contribute to the heightened range and efficiency of electric cars, rendering them more attractive to consumers. Domestic manufacturers, exemplified by VinFast, are making substantial investments in research and development (R&D) to produce competitive EVs in terms of both performance and cost. The increasing emphasis on local manufacturing serves to reduce dependence on imports, consequently lowering costs and improving supply chain efficiency. Furthermore, the integration of advanced technologies such as artificial intelligence (AI) and the Internet of Things (IoT) into electric cars introduces enhanced features like autonomous driving and smart connectivity, thereby further propelling market growth.

Challenges

Limited Charging Infrastructure

The growth of the Vietnam Electric Vehicle (EV) Market is impeded by the limited charging infrastructure. The scarcity of charging stations hinders the widespread adoption of EVs, as potential buyers are concerned about the availability and accessibility of charging facilities. This limitation acts as a bottleneck, restricting the market's expansion and necessitating increased investment in charging infrastructure to support the growing demand for EVs in the country.

Impact of Escalating Geopolitical Tensions on Vietnam Electric Vehicle (EV) Market

Geopolitical tensions can have a multifaceted impact on the Vietnam Electric Vehicle (EV) Market. Despite the country's burgeoning role in the 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 nation holds significant potential, navigating geopolitical tensions becomes imperative for ensuring a resilient and thriving EV industry in Vietnam.

 Vietnam Electric Vehicle (EV) Market

Segmental Coverage

 Vietnam Electric Vehicle (EV) Market – By Propulsion Type

By propulsion type, the Vietnam Electric Vehicle (EV) 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 (EV) 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 throughout the forecast period.

Vietnam Electric Vehicle (EV) Market – By Component

Based on components, the Vietnam Electric Vehicle (EV) Market is divided into Battery Cells & Packs, On-Board Charge, Motor, Reducer, Fuel Stack, Power Control Unit, Battery Management System, Fuel Processor, Power Conditioner, Air Compressor, and Humidifier segments.

Vietnam Electric Vehicle (EV) Market – By Vehicle Type

Based on vehicle type, the Vietnam Electric Vehicle (EV) Market is bifurcated into Passenger Car and Commercial Vehicle segments. The passenger car segment holds a higher share in the Vietnam Electric Vehicle (EV) Market by vehicle type. The dominance is linked to escalating environmental apprehensions, continuous advancements in EV technology, governmental incentives, and the diverse array of models offered by various automakers. Heightened awareness concerning environmental challenges, coupled with enhancements in battery capacity and charging infrastructure, has rendered EVs increasingly viable for daily utilization. Across the globe, governments are introducing initiatives to encourage EV adoption, encompassing financial incentives and more stringent emission standards. Additionally, the competitive pricing of EVs has further stimulated consumer interest and spurred demand.

Vietnam Electric Vehicle (EV) Market – By End User

On the basis of end user, the Vietnam Electric Vehicle (EV) Market is divided into Low-priced, Mid-priced, and Luxury segments.

Competitive Landscape

Major players operating in Vietnam Electric Vehicle (EV) 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. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In January 2024 – VinFast, a leading EV manufacturer based in Vietnam, revealed its plans to start operations in India by the third quarter of 2024, introducing both two-wheelers and four-wheelers in the country. The company has engaged with potential Indian dealer partners, planning to import vehicles as completely-built up units. The company announced its plans to invest USD 500 million in Tamil Nadu for an integrated EV manufacturing facility.

Scope of the Report

By Propulsion Type

• BEV

• HEV

• PHEV

• FCEV

By Component

• Battery Cells & Packs

• On-Board Charge

• Motor

• Reducer

• Fuel Stack

• Power Control Unit

• Battery Management System

• Fuel Processor

• Power Conditioner

• Air Compressor

• Humidifier

By Vehicle Type

• Passenger Cars

• Commercial Vehicles

By Vehicle Class

• Low-priced

• Mid-priced

• Luxury

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Vietnam Electric Vehicle (EV) Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Government initiatives and incentives
         2. Advancements in technology
         3. Rising fuel prices
      2. Restraints
         1. Limited charging infrastructure
         2. Limited model availability
         3. Range anxiety
      3. Opportunities
         1. Collaborations and investments
         2. Rising environmental awareness
         3. Urbanization and economic growth
      4. Challenges
         1. High initial costs
         2. Limited awareness and understanding of Electric Vehicle (EV)s among consumers
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Vietnam Electric Vehicle (EV) Market: Marketing Strategies
5. Vietnam Electric Vehicle (EV) Market Overview
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Million)
      2. By Volume (Thousand Units)
   2. Market Share & Forecast
      1. By Propulsion Type
         1. BEV
         2. HEV
         3. PHEV
         4. FCEV
      2. By Components
         1. Battery Cells & Packs
         2. On-Board Charge
         3. Motor
         4. Reducer
         5. Fuel Stack
         6. Power Control Unit
         7. Battery Management System
         8. Fuel Processor
         9. Power Conditioner
         10. Air Compressor
         11. Humidifier
      3. By Vehicle Type
         1. Passenger Cars
         2. Commercial Vehicles
      4. By Vehicle Class
         1. Low-priced
         2. Mid-priced
         3. Luxury
6. Competitive Landscape
   1. List of Key Players and Their Products
   2. Vietnam Electric Vehicle (EV) Company Market Share Analysis, 2023
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
7. Vietnam Electric Vehicle (EV) Market: Import & Export
8. Impact of Escalating Geopolitical Tensions on Vietnam Electric Vehicle (EV) Market
9. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)
   1. VinFast
   2. Me Linh Electric Car
   3. CÔNG TY TNHH XE ĐIỆN XE MÁY DETECH
   4. Honda Vietnam Company Ltd
   5. Yamaha Motor Co., Ltd
   6. TMT Motors
   7. BYD
   8. Selex Motors
   9. WU'S TECH CO., LTD
   10. Other Prominent Players
10. Key Strategic Recommendations
11. Research Methodology
    1.    Qualitative Research
       1.  Primary & Secondary Research
    2.    Quantitative Research
    3.    Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4.    Breakdown of Primary Research Respondents, By Vehicle Class
    5.    Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable

List of Figures

Figure 1       Vietnam Electric Vehicle (EV) Segmentation

Figure 2       Vietnam Electric Vehicle (EV) Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2023

Figure 4       Vietnam Electric Vehicle (EV) Market Size, By Value (USD Million), 2019–2030

Figure 5       Vietnam Electric Vehicle (EV) Market Size, By Volume (Thousand Units), 2019–2030

Figure 6       Vietnam Electric Vehicle (EV) Market Share, By Propulsion Type, By Value, 2019–2030

Figure 7       Vietnam Electric Vehicle (EV) Market Share, By Propulsion Type, By Volume, 2019–2030

Figure 8       Vietnam Electric Vehicle (EV) Market Share, By Components, By Value, 2019–2030

Figure 9       Vietnam Electric Vehicle (EV) Market Share, By Components, By Volume, 2019–2030

Figure 10     Vietnam Electric Vehicle (EV) Market Share, By Vehicle Type, By Value, 2019–2030

Figure 11     Vietnam Electric Vehicle (EV) Market Share, By Vehicle Type, By Volume, 2019–2030

Figure 12     Vietnam Electric Vehicle (EV) Market Share, By Vehicle Class, By Value, 2019–2030

Figure 13     Vietnam Electric Vehicle (EV) Market Share, By Vehicle Class, By Volume, 2019–2030

List of Tables

Table 1        Vietnam Electric Vehicle (EV) Market Size, By Value (USD Million), 2019–2030

Table 2        Vietnam Electric Vehicle (EV) Market Size, By Volume (Thousand Units), 2019–2030

Table 3        Vietnam Electric Vehicle (EV) Market Size, By Propulsion Type, By Value, 2019–2030

Table 4        Vietnam Electric Vehicle (EV) Market Size, By Propulsion Type, By Volume, 2019–2030

Table 5        Vietnam Electric Vehicle (EV) Market Size, By Components, By Value, 2019–2030

Table 6        Vietnam Electric Vehicle (EV) Market Size, By Components, By Volume, 2019–2030

Table 7        Vietnam Electric Vehicle (EV) Market Size, By Vehicle Type, By Value, 2019–2030

Table 8        Vietnam Electric Vehicle (EV) Market Size, By Vehicle Type, By Volume, 2019–2030

Table 9        Vietnam Electric Vehicle (EV) Market Size, By Vehicle Class, By Value, 2019–2030

Table 10      Vietnam Electric Vehicle (EV) Market Size, By Vehicle Class, By Volume, 2019–2030

Table 11      VinFast Company Overview

Table 12      VinFast Financial Overview

Table 13      Me Linh Electric Car Company Overview

Table 14      Me Linh Electric Car Financial Overview

Table 15      CÔNG TY TNHH XE ĐIỆN XE MÁY DETECH Company Overview

Table 16      CÔNG TY TNHH XE ĐIỆN XE MÁY DETECH Financial Overview

Table 17      Honda Vietnam Company Ltd Company Overview

Table 18      Honda Vietnam Company Ltd Financial Overview

Table 19      Yamaha Motor Co., Ltd Company Overview

Table 20      Yamaha Motor Co., Ltd Financial Overview

Table 21      TMT Motors Company Overview

Table 22      TMT Motors Financial Overview

Table 23      BYD Company Overview

Table 24      BYD Financial Overview

Table 25      Selex Motors Company Overview

Table 26      Selex Motors Financial Overview

Table 27      WU'S TECH CO., LTD Company Overview

Table 28      WU'S TECH CO., LTD Financial Overview