EV market anticipated to see positive signs this year
VOV.VN - The supportive and preferential policies implemented by the Government, such as the exemption of registration fees and reduction in special consumption tax for electric vehicles (EVs), has played a significant role in accelerating the adoption of this type of vehicle in Vietnam, particularly as the nation is experiencing a strong shift towards EVs.
The number of EVs rose from 138 units in 2019 to over 28,000 EVs and 3,557 hybrid vehicles in September, 2023, along with more than two million electric motorbikes.
The forecast for the domestic electric vehicle market in the year ahead therefore appears encouraging. With the participation of both domestic and foreign automobile manufacturers, the market is expected to expand further. VinFast, along with other automobile companies operating in the country, is gradually transitioning to electric vehicles and "green" energy-powered vehicles.
This comes after many foreign car makers have already introduced hybrid car models to the Vietnamese market. Brands like Honda, Kia, Hyundai, BMW, and Toyota have all brought hybrid options such as the Honda CR-V, Kia Sorento, Hyundai Santa Fe, BMW XM, Toyota Yaris Cross, Corolla Altis, and Innova Cross to the market. This diverse range of hybrid models therefore provides consumers with greater choice and further contributes to the overall growth of the electric vehicle market in the nation.
Chinese car manufacturers are also looking to re-enter the Vietnamese market by introducing new electric and hybrid car models. These manufacturers have committed to a long-term development roadmap, including investing in manufacturing and assembly plants in the country through strategic partnerships.
The Vietnamese Government has issued regulations which seek to intensify the use of EVs to address declining air quality and promote green economic development. However, challenges such as incomplete awareness of businesses about green energy conversion, a lack of charging station infrastructure, and insufficient mechanisms to encourage consumption and use of electric vehicles still exist.
According to representatives of the Vietnam Automobile Manufacturers Association (VAMA), the transition to electrified and eco-friendly vehicles is vital. However, price remains a significant factor, with electric cars generally being more expensive due to the high cost of batteries. The VAMA therefore suggests that the transition to electric vehicles should be approached in a balanced manner to avoid disrupting the market.
