Mordorintelligence's market research estimates Vietnam's electric vehicle market to reach US$2.93 billion in 2025, projected to further expand to US$6.69 billion by 2030, demonstrating a Compound Annual Growth Rate (CAGR) of 18% during the forecast period (2025-2030).
Driving factors for market growth in the 2024-2029 period include a surge in demand for fuel-efficient, high-performance, and low-emission vehicles, increasingly stringent vehicle emission regulations, declining battery costs, and other contributing elements.
Industry experts anticipate continued robust growth in Vietnam's electric vehicle market in 2025. This growth is fueled not only by individual consumers but also by the taxi industry, which is undergoing a transformation with major players joining the race to green their fleets in compliance with Government Decision 876. After 2030, all taxis in urban areas are required to operate on electricity or clean energy.
Vietnam's significant opportunity: Transitioning to the Electric Vehicle era
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Government incentives: The government has implemented Decree No. 10/2022/ND-CP, stipulating preferential registration fees for electric vehicles. From March 1, 2025, to March 1, 2027, the registration fee for new electric vehicles is 50% of that for gasoline or diesel vehicles with the same seating capacity. After a three-year preferential period, battery-powered electric cars will enjoy a 0% registration fee. Upcoming adjustments to this policy are expected to have a substantial impact on the entire market.
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Growing awareness of Green transportation: Vietnam's expanding middle class and youthful population, coupled with increasing interest in advanced technologies, fuel efficiency, and environmental consciousness, is projected to drive double-digit growth in the Vietnamese electric vehicle market.
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Development of charging infrastructure: Numerous electric vehicle manufacturers in Vietnam have focused on installing free charging stations for the public in areas such as supermarkets, parks, and shopping centers. Additionally, they have introduced various services to encourage greater adoption of green transportation.
Roadmap for transitioning to Green transportation
To achieve its net-zero emissions commitment by 2050 and promote the transition to green transportation while capitalizing on the significant opportunities presented by the electric vehicle era, the Prime Minister issued Decision No. 876/QD-TTg on July 22, 2022, approving the Action Program on Green Energy Transition, Carbon and Methane Emissions Reduction in the Transportation Sector.
Roadmap for Green road transport
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2022-2030: Increase the production and use of electric vehicles, expand the charging station network, and promote the use of E5 gasoline to reduce pollution.
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2040: Gradually restrict and eventually halt the production, assembly, and import of fossil fuel-powered automobiles, motorcycles, and mopeds for domestic use.
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2050: 100% of road-based motor vehicles and construction machinery will transition to electricity or clean energy. A nationwide charging infrastructure will be developed to meet the needs of the public and businesses.
Tasks and solutions to achieve the goals
To promote green transportation, the following solutions should be implemented in a coordinated manner:
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Perfect the legal framework and encourage the use of electric vehicles and clean energy.
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Develop policies to incentivize the transition to green transportation.
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Expand the charging infrastructure, prioritizing densely populated areas.
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Improve energy efficiency and reduce greenhouse gas emissions.
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Research and apply green technologies in transportation.
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Enhance public awareness through communication campaigns.
References:
Lâm H. (2025b, January 8). Bức tranh thị trường xe điện Việt Nam 2025. Nhịp Sống Kinh Tế Việt Nam & Thế Giới. https://vneconomy.vn/techconnect/buc-tranh-thi-truong-xe-dien-viet-nam-2025.htm
Việt Nam có cơ hội lớn để chuyển sang kỷ nguyên xe điện. (n.d.). https://consosukien.vn/viet-nam-co-co-hoi-lon-de-chuyen-sang-ky-nguyen-xe-dien.htm
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