H. Yoo
Research expert covering South Korea
Electric vehicle market in Vietnam - statistics & facts
In recent years, the Asia-Pacific region has led the global electric vehicle (EV) revolution, accounting for the largest share of battery electric vehicles worldwide. Driven by powerhouses like China, Japan, and South Korea, the regional EV market has seen rapid growth. But another exciting story might be unfolding in Vietnam, where a new market for electric vehicles is emerging with impressive momentum. Although EVs still account for a modest share, signs point to an electrifying shift on the horizon.
In 2023, car sales in Vietnam exceeded 278,000, though only around 15,700 of these were electric. Yet, the outlook for electric four-wheelers is bright. With gas prices climbing and environmental awareness on the rise, EVs offer a sustainable alternative. To accelerate the transition, the Vietnamese government has rolled out incentives ranging from lower import taxes to waived registration fees, making EVs an even more attractive option. Experts forecast that by 2028, one million electric cars will be on Vietnam's roads, with projections reaching 3.5 million by 2040.
But this ambitious expansion has faced obstacles. In 2024, VinFast scaled back its delivery goal from 100,000 to 80,000 units after reporting mid-year sales of only 21,000 electric cars —largely to GSM, a Vietnamese taxi company owned by VinFast’s parent. The North Carolina plant’s completion was also pushed from 2025 to 2028. Competing with EV giants like Tesla and BYD further means VinFast must define a unique edge in a competitive, brand-loyal market. As VinFast moves forward, it encounters both immense opportunities and considerable challenges, representing a transformative step toward putting "made in Vietnam" in the global EV map. In sum, Vietnam’s EV market is poised for rapid growth, with VinFast at the forefront, demonstrating the nation’s potential to become a significant player in the global electric vehicle landscape.
The rise of electromobility in Vietnam
While electric cars are still gaining traction, Vietnamese consumers have long embraced smaller electric vehicles like bikes, motorcycles, and scooters. These two-wheelers have become a staple for young commuters —especially students—who enjoy the freedom of faster, license-free transportation that blends convenience with speed. Seizing this trend, major motorbike makers like Honda and Yamaha have introduced electric models to meet the evolving needs of the market, breathing new life into Vietnam’s saturated motorcycle scene.In 2023, car sales in Vietnam exceeded 278,000, though only around 15,700 of these were electric. Yet, the outlook for electric four-wheelers is bright. With gas prices climbing and environmental awareness on the rise, EVs offer a sustainable alternative. To accelerate the transition, the Vietnamese government has rolled out incentives ranging from lower import taxes to waived registration fees, making EVs an even more attractive option. Experts forecast that by 2028, one million electric cars will be on Vietnam's roads, with projections reaching 3.5 million by 2040.
VinFast: Vietnam's bold entry into the global EV arena
VinFast has quickly risen as Vietnam’s first electric automaker, symbolizing the rise of electromobility and the ambitions of a homegrown brand with global reach. Having captured Vietnam’s EV market, VinFast looked beyond borders, shipping its first electric cars to the U.S. in early 2023—a bold step into one of the world’s largest automotive arenas. By August 2023, VinFast went public on NASDAQ, with shares briefly peaking at 37.06 U.S. dollars, giving it a valuation over $85 billion—surpassing legacy brands like Ford and General Motors. Strengthening its U.S. presence, VinFast also began building a North Carolina plant with a 150,000-car annual production target.But this ambitious expansion has faced obstacles. In 2024, VinFast scaled back its delivery goal from 100,000 to 80,000 units after reporting mid-year sales of only 21,000 electric cars —largely to GSM, a Vietnamese taxi company owned by VinFast’s parent. The North Carolina plant’s completion was also pushed from 2025 to 2028. Competing with EV giants like Tesla and BYD further means VinFast must define a unique edge in a competitive, brand-loyal market. As VinFast moves forward, it encounters both immense opportunities and considerable challenges, representing a transformative step toward putting "made in Vietnam" in the global EV map. In sum, Vietnam’s EV market is poised for rapid growth, with VinFast at the forefront, demonstrating the nation’s potential to become a significant player in the global electric vehicle landscape.
