USAID V-LEEP II Technical Report: Vietnam EV Market Assessment

As of 2020, there were 69.2 million registered vehicles in Vietnam, with 65.3 million being two-wheelers, 2.3 million being four-wheelers, and 1.4 million being trucks. The International Energy Agency has identified Vietnam as a high-volume global growth market for electric two-wheelers (E2Ws). The EV market in Vietnam is currently dominated by VinFast, a domestic battery electric vehicle (BEV) manufacturer, with a small number of imported BEVs from international companies. Domestic E2W options are extensive, with various manufacturers offering a range of makes and models to cater to different customer needs and preferences. The lack of public EV charging infrastructure remains a significant barrier to the growth of the EV market in Vietnam. VinFast currently owns and operates the majority of BEV charging in Vietnam, with proprietary software only compatible with VinFast vehicles. Most E2W owners primarily charge at home, but solutions are needed for those who need to access public charging, such as individuals living in urban areas with multi-unit dwellings. Several key legal documents have formed the basis for EV development in Vietnam, including Decision No. 896/QD-TTq on the National Climate Change Strategy, Decision No. 888/QD-TTq on Approving the Scheme to Implement COP26, and Decision No. 876/QD-TTq on Approving the Action Plan for Green Energy Transition and Carbon Dioxide and Methane Emissions Mitigation in Transportation. These decisions set the strategic vision for EV deployment and transportation sector decarbonization, but there is a need for policies, regulations, and standards that cover EV manufacturing, purchasing, and usage. The Vietnamese government has been actively promoting the development of the EV sector through various initiatives, including the establishment of the Vietnam Low Emission Energy Program II (V-LEEP II). The program aims to advance the transition of Vietnam to a clean, secure, and market-based energy sector by increasing the deployment of advanced energy systems, improving energy sector performance, and increasing competition in the energy sector. The EV market in Vietnam is expected to continue growing, with an estimated 4,000 four-wheeled EVs and 3 million electric bicycles and electric motorcycles on the road as of October 2022. The growth of the EV market is expected to contribute to Vietnam's clean energy and climate change goals, as well as provide benefits to consumers, including reduced fuel costs and improved air quality. The V-LEEP II program has identified several key areas for further analysis and recommendations, including providing policy and regulatory certainty, adopting standards, promoting universal public charging, increasing EV awareness, and assessing the impacts of widespread EV adoption in Vietnam. The program aims to support the growth of the EV sector in Vietnam and contribute to the country's transition to a clean, secure, and market-based energy sector. The electric vehicle (EV) landscape in Vietnam is characterized by a growing market with significant growth potential. The EV market is currently dominated by VinFast, a domestic battery electric vehicle (BEV) manufacturer, with a small number of imported BEVs from international companies. Domestic E2W options are extensive, with various manufacturers offering a range of makes and models to cater to different customer needs and preferences.