Electric car market in Vietnam has significant growth in 2023

The electric car market in Vietnam has significant growth in 2023


Many experts believe that the development trend of the electric car market in Vietnam in 2022 will be the most potential in Southeast Asia, especially in the next few years. With the same view, the Vietnam Automobile Manufacturers Association (VAMA) also forecasts that Vietnam will reach 1 million electrified cars (EVs) around 2028 and grow rapidly in 2030-2040. By 2040, Vietnam will have about 3.5 million electric cars. 


Outlook of the electric car market in Vietnam


In the first 9 months of 2022, Vietnam had car sales in the whole market reaching 33,462 vehicles, an increase of 8.5% compared to August 2022 and an increase of 147% compared to the same period in 2021.


Which, there are 33,463 travel cars, 7,539 commercial vehicles, and 313 specialized vehicles.


electric car
The proportion of different types of cars in the Vietnamese market in 2022


Sales of passenger cars increased by 2%, commercial vehicles by 37%, and special-purpose vehicles by 17% compared to the previous month.


Sales of locally assembled cars reached 17,193 units, up 11% from the previous month and sales of imported complete units were 16,270 units, up 6% from the previous month.


Regarding prospects, VIRAC forecasts that the automobile market in Vietnam will “cool down” in the fourth quarter of 2022. The cause comes from:


  • As for supply sources, auto industry experts predict that the global semiconductor chip shortage will continue to last, at least until the end of 2022, from which the supply is limited. Moreover, a series of worldwide car manufacturers have also planned to cut production because they have not solved the supply chain problem.


  • In addition, the end of the 50% discount on registration fees will likely reduce people’s consumption demand. In addition, the micro and macro factors of the current economy will more or less affect the auto market in the coming time.


However, VIRAC also believes that the auto market is still having growth opportunities. In the last months of the year, many new car models will be launched, and along with that, the Vietnam auto show 2022 coming back in October promises to make the market more dynamic.


The electric car market in Vietnam is expected to explode strongly in the next few years


In 2019, the total number of electric vehicles sold on the market was 1.4 million, an increase compared to 2018. However, the increase was only 9% while the growth rate of electric vehicles in the previous 6 years was very strong, from 46 to 69%. 


In 2020, despite the impact of the Covid-19 epidemic, the number of newly registered cars did not have a clear growth, but the number of electric cars sold globally still increased sharply, reaching 2.01 million vehicles. This shows that users have gradually had a clear view of electric vehicles and are more and more sympathetic to green vehicles. That is why, in 2020, the market share of electric vehicles worldwide reached a record level of 4.6%.


By 2021, the number of electric vehicles sold globally will reach 4.2 million units. That proves electric vehicles are gradually dominating the automobile market in general. Electric carmakers have seen unexpected sales as they move towards the use of green energy in the auto industry.


Experts consider 2022 as a turning point for electric vehicles when many car manufacturers “land” into the market, creating more opportunities for consumers to gradually go with electric vehicles. The heat of competition is greater but always comes with opportunities for car manufacturers who know how to take advantage of opportunities and advantages to access the market.


VINFAST VF-e36 electric car at the 2022 US auto exhibition
VINFAST VF-e36 electric car at the 2022 US auto exhibition


With the development of electric vehicles worldwide as an inevitable trend, Vietnam cannot be behind. In addition, in the face of uncertainties in the global oil supply chain, and the continuous increase in gasoline prices, electric vehicles are considered to be the future of the transportation industry around the world.


In Vietnam, the trend of using new electric vehicles led by VinFast’s electric models will drive the demand for cars even higher in 2022. Vietnam is expected to be a potential electric car market in Southeast Asia in the next few years.


With the same opinion, the Vietnam Automobile Manufacturers Association (VAMA) also foresees that Vietnam will reach 1 million electrified vehicles (EVs) around 2028 and grow rapidly from 2030 to 2040. By 2040, Vietnam will have about 3.5 million electric cars.


Factors driving the strong development of the Vietnamese electric car market 


Demand for cars remains high in Vietnam


According to the Industry and Trade Information Center (Ministry of Industry and Trade), it is estimated that automobile demand in 2022 will increase by 16% compared to the same period last year. Coupled with the very low car ownership rate in Vietnam and the government’s 50% reduction in registration fees under Circular 103/2021/ND-CP could be a solid foundation for high growth in 2022. In addition, the trend of using new electric vehicles in Vietnam, led by VinFast’s electric models, will drive car demand even higher in 2022.


– Gasoline is becoming scarce and expensive


electric car impact
The recent trend of gasoline scarcity and price increases


During the early 1800s, a series of technological breakthroughs in batteries and motors aided the birth of the first electric cars. Then, when the US discovered oil in Texas, gasoline became cheap and readily available to many people, while at this time, electricity was only available in the big cities. For the next 30 years, electric cars didn’t make much progress, and by the mid-1930s, they had almost completely disappeared from the U.S. vehicle market.


However, since the beginning of 2022, the world and Vietnam’s gasoline prices have experienced many price increases due to the influence of the supply-demand gap and world political tension. In less than a year, gasoline prices in Vietnam have doubled compared to the same period last year. This has a huge impact on vehicles running on gasoline and diesel and also promotes a huge increase in customer demand for the electric vehicle market.


– Consumer behavior changes significantly after Covid-19 affects the electric car market


  • Avoiding crowded place behavior


After the COVID pandemic, most people have a habit of avoiding crowded places and limiting travel by public transport. This is also driving an increase in the use of personal vehicles for commuting. Resonating with the factor of “increasing gasoline”, many people have had the idea of ​​switching to a personal vehicle but with cheaper operating costs like electric vehicles.


To understand clearly the behavior and trends of changing consumer needs, register for market research below:



  • Green consumption trends of consumers


Currently, consumers are increasingly interested in smart and sustainable consumption, as well as environmentally friendly products and services right from production to consumption and use of products. People and investors have gradually changed their shopping habits with “green” consumption channels and prioritized health protection and renewable energy. Starting from small items around our lives such as wrapping vegetables, tubers, and fruits with banana leaves; using glass water bottles, bamboo or paper straws; utilizing paper cups instead of plastic cups, cloth bags instead of plastic bags, etc to great value products such as electric motorbikes, electric cars.


Buying electric cars is becoming a trend chosen by many Vietnamese consumers. According to the latest survey of a prestigious forum about cars and motorcycles, up to 99.4% of consumers over 25 years old have heard of electric cars, of which 82% are interested and have learned about electric cars. this green vehicle and more than 46% of people choose to buy an electric car in the next 12 months.


– Technology development and energy achievements are applied to electric vehicles


With newly equipped technologies, electric vehicles travel longer distances, have less charging time, have larger payloads, and have more modern designs are the factors that help electric vehicles become closer to consumers. 


In the transportation industry, the price of gasoline is the biggest cost in operation, at the moment, replacing gasoline with electric energy at a cheaper cost is an optimal choice for the future.


– Government and state support


Vietnam now also has several preferential policies for the production of environmentally friendly vehicles, such as preferential import tax on components for enterprises manufacturing and assembling electric cars and used fuel-cell cars, hybrid cars, or special consumption tax incentives for these vehicles.


Recognizing the seriousness of the problem of vehicle emissions affecting the environment, the Government has taken many measures to promote green transport.


On July 22, 2022, the action program on green energy transformation, reducing carbon and methane emissions of the transport sector was approved by Deputy Prime Minister Le Van Thanh in Decision No. Decree No. 876/QD-TTg.


The program has set out a roadmap for green energy transformation in the period of 2022 – 2030 with a number of goals such as: promoting the production, assembly, import, and use of electric vehicles; expanding mixing, and using 100% E5 gasoline with road vehicles.


At the same time, develop charging infrastructure to meet the needs of people and businesses; encourage bus stations and rest stops to convert according to green criteria.


Green traffic – future development trend


Currently, there are 4 types of green cars in the world, including:


  • Electric Vehicle
  • Hybrid Electric Vehicle
  • Plug-in Hybrid Electric Vehicle
  • Fuel cell vehicles


The above information is updated from Automobile Report in Q3/2022 and VIRAC‘s comprehensive reports and related information sources.


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  • Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank)
  • Joint Stock Commercial Bank for Industry and Trade of Vietnam (Vietinbank)
  • Bank for Agriculture and Rural Development of Vietnam (Agribank)
  • Military Commercial Joint Stock Bank (MB Bank)
  • Unilever Vietnam International Co., Ltd
  • Olam International
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