Electric Vehicle Revolution in Vietnam: Unlocking the Potential of a Growing Market

The report by HSBC Bank highlights the untapped potential of Vietnam’s electric car market, despite the majority of people in the country owning motorbikes rather than cars. While previous predictions suggested there would be 3.5 million electric cars in Vietnam by 2040, HSBC believes that challenges such as high battery and car prices and limited charging station coverage need to be addressed.

To overcome these challenges, HSBC emphasizes the importance of infrastructure development in the electric vehicle sector. The bank estimates that Vietnam needs 12.3 billion USD in investment and 14tWh of cumulative energy to support the growth of electric vehicles through 2040. Currently, there are around 150,000 electric vehicle charging ports in Vietnam, but more investment is needed to expand this infrastructure, particularly along highways.

In addition to infrastructure, HSBC suggests that tax policies, subsidies, and partnerships with foreign businesses can help overcome price obstacles and build a stronger ecosystem for electric vehicles in Vietnam. The bank highlights efforts by companies like VinFast and Chery Automobile to establish battery factories and electric vehicle manufacturing plants in the country.

While electric cars face challenges, the electric motorbike market in Vietnam is forecasted to be more favorable due to affordable prices and high localization rates. Domestic manufacturers like VinFast, Selex Motors, and Dat Bike are expected to play a key role in the growth of electric motorbikes in Vietnam. Overall, HSBC predicts that electric vehicle sales in Vietnam could reach 2.5 million units by 2036, showing significant growth potential for the sector.