- Vietnam’s electric vehicle market remains in its infancy, but there are plenty of opportunities as we are likely to see a paradigm shift from gasoline to electric-powered vehicles.
- With a rising population and an expanding middle class, consumers are increasingly aware of the environment, fuel efficiency, and increasing pollution levels in cities.
- Vietnam Briefing outlines the opportunities in Vietnam’s electric vehicle market despite the slow progress till date.
The electric vehicle market in Vietnam has not garnered as much attention compared to other countries in the region and globally, but this doesn’t mean that opportunities are not there. Electric vehicles are an irreversible trend and will be the future as governments move towards clean energy and consider the environment. This means that investors that are interested can set up the groundwork including production facilities, supply chains, and manpower to prepare for this future shift.
With a population of more than 96 million, about half of Vietnam’s population owns motorcycles, while car ownership is at a ratio of 23 per 1,000 people. Major cities such as Hanoi and Ho Chi Minh City are gridlocked with motorbikes on streets, alleys, and even sidewalks. This in turn has resulted in increased pollution and congestion. Hanoi and Ho Chi Minh City have ranked high in pollution levels globally several times. A poll by IQAir listed Vietnam as the 15th most polluted country in the world.