Vietnam Electric Car Market

Vietnam Electric Car Market Size and Share:

The Vietnam electric car market size was valued at USD 3.02 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 12.23 Billion by 2033, exhibiting a CAGR of 16.81% from 2025-2033. The escalating trend towards sustainability and reduction of greenhouse gas emissions, rising investment by the government for building electric vehicles (EVs) charging stations, increasing middle class population, and growing need for cleaner and more efficient modes of transportation represent some of the key factors driving the market.

Vietnam’s government plays a vital role in accelerating EV adoption through strong policy support and long-term strategic planning. Incentives like tax reductions, waived registration fees, and green transport initiatives have significantly improved public access to EVs. These actions align with the national goal of reducing carbon emissions and transitioning to clean energy by 2050. The establishment of charging infrastructure and support for domestic EV production further strengthen the market's foundation. Highlighting this commitment, the World Bank estimates Vietnam will need up to $9 billion in additional power sector investments by 2030 and $14 billion annually from 2031 to 2050 to support EV growth. This comprehensive approach not only benefits consumers and manufacturers but also positions Vietnam as a regional leader in sustainable mobility and clean energy transformation.

Environmental concerns are increasingly influencing consumer behavior in Vietnam, particularly in urban areas where air pollution and traffic congestion are prominent. EVs offer a cleaner, quieter alternative to internal combustion engines, making them appealing to city dwellers seeking sustainable mobility options. As urbanization continues, demand for efficient, eco-friendly transport rises. Public awareness campaigns, media coverage, and trends in climate action also inspire Vietnamese consumers to choose greener alternatives. Combined with improved technology and affordability, this growing consciousness is pushing more people toward EVs, making environmental awareness a powerful driver of the market’s expansion.

Vietnam Electric Car Market Trends:

Rapid EV Market Expansion Driven by Domestic Leaders

Vietnam’s EV market is undergoing a rapid transformation, with homegrown automakers like VinFast playing a key role in shaping the market. These brands have made EVs more accessible by offering affordable, innovative models, accelerating public acceptance. Government initiatives, such as the proposed $1,000 subsidy for EV buyers and various tax incentives, are driving the shift from traditional gas-powered vehicles to cleaner alternatives. Growing public awareness about climate change and the demand for sustainable transport further fuels this transition. As consumer demand rises, Vietnam is investing in the infrastructure and expertise needed to become a regional EV hub. This shift is supported by favorable policies, such as incentives for manufacturing and the development of a comprehensive EV ecosystem, positioning Vietnam as a leader in green transportation.

Strategic Entry of International EV Manufacturers

Vietnam’s growing interest in EVs has attracted the attention of automotive giants. Foreign manufacturers, especially from Asia and Europe, are increasingly entering the market to tap into its long-term potential. These companies are not only introducing new vehicle models but also exploring local partnerships and production opportunities to integrate more deeply into the Vietnamese economy. Their presence adds variety and quality to consumer choices, pushing local companies to innovate and compete more effectively. This influx of international players also brings advanced technology, supply chain improvements, and expertise that benefit the entire industry. As competition intensifies, consumers are likely to enjoy better designs, features, and after-sales service, accelerating the overall adoption of electric mobility across the country.

Infrastructure Development and Policy Support

Infrastructure is a critical piece in the success of EVs, and Vietnam is making strategic moves to support this shift. Efforts are underway to develop a national charging network, with both public and private players stepping in to build convenient and widespread access to EV chargers. Alongside infrastructure development, government policies are encouraging EV use through tax breaks, reduced registration fees, and other financial incentives. These combined efforts aim to reduce barriers for consumers considering an EV purchase. However, challenges like limited charging availability in rural areas and a need for domestic component manufacturing still exist. Despite these hurdles, Vietnam’s commitment to sustainable mobility and clean energy is clear, laying the groundwork for a more robust EV ecosystem in the near future.

Vietnam Electric Car Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the Vietnam electric car market, along with forecast at the regional, and country levels from 2025-2033. The market has been categorized based on type, vehicle class, and drive type.

Analysis by Type:

• Battery Electric Vehicle
• Plug-In Hybrid Electric Vehicle
• Fuel Cell Electric Vehicle

Battery Electric Vehicle (BEV) are gaining strong momentum in Vietnam due to their zero-emission operation and lower running costs. Government incentives and expanding charging infrastructure support their growth. Ideal for urban commuting, BEVs appeal to environmentally conscious consumers and are driving the country’s shift toward fully electric transportation.

Additionally, plug-in hybrid electric vehicle (PHEV) offers a flexible option by combining electric power with traditional fuel. They appeal to consumers concerned about charging accessibility, especially outside major cities. While less popular than BEVs, PHEVs serve as a transitional choice for drivers seeking reduced emissions without fully committing to all-electric mobility.

Apart from this, the fuel cell electric vehicle (FCEV) remains largely experimental in Vietnam due to limited hydrogen infrastructure and higher costs. Though promising for long-distance, low-emission travel, their adoption is minimal. Significant investment and technological development are needed before FCEVs can compete with BEVs and PHEVs in Vietnam’s growing EVecosystem.

Analysis by Vehicle Class:

• Mid-Priced
• Luxury

The mid-priced EV segment in Vietnam is experiencing significant growth, driven by increasing consumer demand for affordable and efficient transportation options. These vehicles offer a balance between cost and functionality, making them attractive to a broad range of consumers. Government incentives and expanding charging infrastructure further support this segment's expansion. As urbanization continues and environmental awareness rises, mid-priced electric cars are becoming a practical choice for daily commuting and city driving.

Besides this, the Vietnam's luxury EV market is growing steadily, fueled by rising affluence and a desire for premium, technologically advanced vehicles. Consumers in this segment seek status symbols that offer superior performance, comfort, and cutting-edge features. The entry of international luxury brands has expanded choices, introducing models with advanced safety systems, autonomous driving capabilities, and high-end infotainment. Improved financing options and favorable import policies have made luxury electric cars more accessible.

Analysis by Drive Type:

• Front Wheel Drive
• Rear Wheel Drive
• All-Wheel Drive

Front-Wheel Drive (FWD) EVs are popular in Vietnam due to their affordability, efficiency, and suitability for city driving. They offer better traction in wet conditions and are easier to maintain. Most mid-range electric cars fall into this category, making FWD a practical choice for everyday urban commuters.

Rear-Wheel Drive (RWD) EVs cater to drivers who prioritize performance and handling. Though less common than FWD, RWD offers better weight distribution and driving dynamics, appealing to enthusiasts and those seeking a more engaging driving experience. This type is typically found in mid to high-end EV models.

All-Wheel Drive (AWD) EVs are gaining interest among Vietnamese consumers who prioritize safety, stability, and off-road capability. Though priced higher, AWD EVs are favored for long-distance travel and premium segments. Their advanced traction makes them suitable for diverse road conditions, enhancing confidence and control in all weather scenarios.

Analysis by Region:

• Northern Vietnam
• Central Vietnam
• Southern Vietnam

Northern Vietnam leads in EV adoption due to its dense population, economic hubs like Hanoi, and early infrastructure development. The region benefits from strong government presence, public awareness, and investment in charging stations. These factors make it a focal point for both production and early market penetration in EV deployment.

Also, the Central Vietnam is gradually embracing EVs, with adoption centered around urban areas like Da Nang. Though infrastructure is developing, the region faces challenges like limited charging networks in rural zones. However, tourism, rising environmental consciousness, and government-backed green initiatives are helping drive interest in sustainable transport solutions.

Furthermore, the Southern Vietnam, especially Ho Chi Minh City, shows strong EV market potential due to its economic vibrancy and growing middle class. Urban congestion and pollution issues are prompting a shift toward cleaner transportation. Increasing private investment in charging infrastructure and eco-conscious consumer behavior are further accelerating EV adoption in the region.

Competitive Landscape:

The competitive landscape in Vietnam’s electric car market is becoming increasingly dynamic and diverse. Both domestic and international players are entering the space, leading to heightened competition and rapid innovation. Companies are focusing on affordability, design, and technological features to attract a wide range of consumers, from budget-conscious buyers to premium market seekers. The race is also on to develop reliable charging infrastructure and enhance after-sales services. As competition intensifies, firms are investing in localized production, strategic partnerships, and customer experience improvements. This evolving environment is pushing the entire market forward, resulting in better product offerings, competitive pricing, and faster adoption of electric mobility throughout the country.

The report provides a comprehensive analysis of the competitive landscape in the Vietnam electric car market with detailed profiles of all major companies.

Latest News and Developments:

• January 2025: VinFast, a Vietnamese company, entered the Indian market in 2025 with the introduction of its VF 7 and VF 6 electric SUVs. The business is spending $500 million on a manufacturing facility in Tamil Nadu, which should be finished by the end of 2025. VinFast is exchanging incentives under the new EV policy with the government. It also preparations to export India-made EVs to the Middle East and Africa.
• December 2024: VinFast builds its instant production plant in Ha Tinh, Vietnam, to meet rising demand for small and mid-sized EVs. The facility is scheduled to start operations in July 2025 and has an annual capacity of 300,000 units. Models VF 3 and VF 5 will be produced for both domestic and international markets. Because of increased production and cheaper material prices, VinFast's Q3 net loss shrank to USD 550 million.
• October 2024: BYD presented the Han EV sedan and M6 MPV in Vietnam, increasing its lineup to five models. This follows the July launch of the Dolphin, Seal, and Atto 3. The Han EV starts at USD 58,930, while the M6 MPV starts at VND 756 Million. BYD continues to strengthen its presence in the Vietnamese EV market.
• September 2024: Vietnam’s VinFast revealed pre-orders for its mini electric SUV, the VF 3, in the Philippines, marking its first international debut. Early customers reserving between September 19-30 will receive special incentives. The VF 3 has an 8-year unlimited mileage battery guarantee in addition to a 7-year/160,000 km vehicle assurance. VinFast also offers free battery maintenance and replacement if capacity drops below 70% under its subscription plan.
• September 2024: Chinese luxury EV brand Zeekr, owned by Geely, entered the Vietnamese market through a partnership with Tasco. Through the deal, Zeekr joins Tasco's portfolio, which already comprises Volvo and Lynk & Co.. Details on model availability and charging infrastructure remain undisclosed. Established in 2021, Zeekr focuses on luxury, driving assistance, and safety equipment.

Vietnam Electric Car Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Vietnam electric car market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the Vietnam electric car market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Vietnam electric car industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.