Electric vehicles in Vietnam : 7 years of development and double-digit growth prospect

The shift toward greener mobility has been underway in Vietnam and the local electric vehicle (EV) market is expected to see double-digit growth thanks to favorable policies, infrastructure development, automakers’ efforts, and a young consumer base.

Accelerating EV market

Experts predicted that by 2025, EVs will become the leading segment driving Vietnam’s automotive market forward. The transition has already been happening, with not only individual car buyers but also taxi and transport companies joining the green mobility trend.

A series of policies, such as the government’s Decision 876, require that by 2030, 100% of taxis in urban areas must run on electricity or clean energy. This mandate, combined with the competition among major players like VinFast, BYD, TMT, Hyundai, and Wuling, is expected to propel the market forward. This is further validated by market shifts seen in the first half of 2025 and prior years.

According to the Vietnam Automobile Manufacturers Association (VAMA), the total sales of its members including Toyota, Ford, Honda, Suzuki and other non-member importers reached 226,500 vehicles in H1/2025, a 70.2% surge compared to the same period in 2024. This is a remarkably high number, reflecting the significant efforts of domestic automakers during H1.

Meanwhile, VinFast, the national EV champion, delivered 67,569 EVs in H1, accounting for roughly 30% of the total automobile market share.

These numbers reflect the vast potential of the EV segment and the market’s ongoing transition. It is clear that this trend is inevitable, especially as EV brands continue to grow their market share through incentives such as price reductions and free charging.

For example, VinFast has offered free charging at V-Green stations for customers purchasing vehicles before June 30, 2027, and has adjusted prices on many models. Most recently, the company reported unexpected success with its gasoline-to-electric vehicle exchange program.

Seven years and hundreds of thousands of EVs on the road

Hanoi-based development and investment firm Kirin Capital cited the Ministry of Transport (now the Ministry of Construction) as saying that more than 20,000 EVs were registered in Vietnam from 2018 to July 2023, showing a dramatic increase in just five years.

Notably, between 2021 and 2023 alone, the number of EVs in Vietnam jumped from 167 to 12,585.

Another report by Mordor Intelligence estimated Vietnam’s EV market size at $2.93 billion in 2025, projected to reach $6.69 billion by 2030, representing a compound annual growth rate (CAGR) of 18% between 2025 and 2030. The higher the growth, the fiercer the competition.

Vietnam’s EV market is booming, with tens of thousands of vehicles produced annually, bringing the current market size to around 250,000-300,000 EVs.

While this figure may still pale in comparison to fuel-powered vehicles, it’s important to note that it’s only been seven years since VinFast inaugurated its first EV plant in July 2018.

Since then, the EV market in this 100-million-strong nation has made significant strides. In addition to the success of homegrown VinFast, global brands like Wuling, BYD, Mercedes-Benz, Audi, Porsche, and Tesla have also entered the Vietnamese market, particularly in the luxury segment.

Market outlook

In the short term, EVs will remain the dominant segment as gasoline-powered vehicles lose their appeal. However, in certain segments such as pickup trucks, EVs will face difficulties replacing combustion engines due to specific technical and performance requirements, said Nguyen Tran Quan, manager of a car showroom in Ho Chi Minh City.

“In general, though, EVs are meeting customer preferences very well, particularly in the urban car category, with reasonable sizes and prices catering to most young consumers,” he added.

In the medium term, from now until 2030, Vietnam’s EV market is expected to be strongly driven by supportive policies. Infrastructure is gradually improving, and EVs are increasingly being used in public transport and ride-hailing services – another advantage for adoption.

“But fundamentally, it’s still about charging infrastructure,” Quan noted. “EVs require a more extensive and organized charging station network. VinFast is showing strong growth in this area, but what about the others? It’s also worth noting that most EV charging stations in Vietnam are currently designed for electric motorbikes, not cars.”

He also pointed out that some manufacturers offer portable chargers, allowing users to charge from anywhere, but few do this effectively. Moreover, overnight charging without supervision raises safety concerns like fire hazards.

“If these challenges are addressed, there’s no doubt Vietnam’s EV market will grow even more. With a young, tech-savvy, and environmentally conscious population, electric vehicles are well-positioned to see double-digit growth in this 100-million-strong market,” Quan concluded.

By Lien Thuong & Minh Hue – Theinvestor.vn – July 14, 2025