Vietnam’s electric vehicle market has untapped potential, with more than 60% of people owning motorbikes and only 5.7% owning cars. The report “Vietnam At A Glance: The Story of Electric Vehicles” by HSBC Bank highlights this trend and the challenges that manufacturers may face in popularizing electric cars due to users’ hesitancy caused by the lack of charging stations, high battery and car prices.
To address these challenges, the development of infrastructure, particularly charging stations, will be crucial for the growth of electric vehicles in Vietnam. HSBC estimates that the country needs significant investment and energy resources to support electric vehicles from 2024 to 2040. Currently, Vietnam has nearly 150,000 electric vehicle charging ports, mainly located in residential areas, shopping centers, and parking lots. However, there is a lack of charging stations on highways, which presents a barrier to widespread adoption of electric vehicles. By investing in charging stations in key areas, users may feel more confident in choosing electric vehicles as their primary mode of transportation.
In addition to electric cars, the electric motorbike market in Vietnam is forecasted to thrive due to affordability and a high localization rate. Vietnamese people are more familiar with motorbikes than cars, which contributes to the potential growth of the electric motorbike market. Domestic manufacturers are expected to play a significant role in the electrification of two-wheeled vehicles, with sales forecasted to increase significantly by 2036.
Overall, HSBC predicts that Vietnam’s electric vehicle market will continue to grow rapidly over the coming years. Sales are projected to reach 2 million units by 2036 if addressing infrastructure issues such as expanding accessibility through network extension and improving user experience through smart grid technology implementation can be achieved successfully
