WB report recommends pathways for transitioning to electric mobility in Vietnam

The key spheres include boosting EV supply and production, incentivising consumer demand, expanding charging infrastructure, preparing the power sector to absorb increasing power demand from EV charging, and developing a skilled EV workforce.

The report titled “Vietnam: Recommendations to the National Roadmap and Action Plan for the Electric Mobility Transition” provides a clear roadmap for achieving the nation’s ambitious goals, which includes raising the share of urban vehicles powered by electricity or green energy to 50% and the share of urban buses and taxis to 100% by 2030. This is as well as increasing the share of all road vehicles powered by electricity or green energy to 100% by 2050.

This transition could reduce greenhouse gas emissions by 5.3 million tonnes of carbon dioxide equivalent (CO2e), which is 8% of Vietnam’s 2030 emission reduction targets, by 2030 and 226 million tonnes, 60% of the target, by 2050.

“Decarbonizing transport with electric vehicles is a complex undertaking, and Vietnam's commitment is a crucial first step,” said  Mariam J. Sherman, World Bank Country Director for Vietnam, Cambodia, and Lao PDR

“Success hinges on collaboration. Government ministries, private investors, and citizens must work together to reshape the vehicle market, mobility patterns, and energy consumption,” he added.

By 2035, the nation’s EV transition will be driven primarily by two-wheeled vehicles, which are expected to remain the dominant mode for private mobility. Policy interventions, such as facilitating consumer financing, implementing safety standards and testing protocols, incentivising the supply of electric two-wheelers with higher power and range, and promoting the retirement of gasoline-powered two-wheelers, could all serve to boost the share of electric two-wheelers from the current level of 12% to 75% by 2035.

Passenger cars are expected to become the dominant type of private vehicle in the country after 2035, whilst electric cars could be the preferred choice among the majority of first-time car buyers, providing that the needed charging network is in place. The report projects that electric cars will account for 93% of all car sales in the 2036 to 2050 period if the stated targets are met.

The move to E-Mobility is critical for public transport and commercial vehicles, as buses and trucks represent 2% of registered vehicles, but currently contribute 65% of emissions. Transitioning to electric buses requires strong policy interventions to address low ridership, set new standards, and ensure financial viability. Electrifying small commercial trucks under five tonnes using battery EVs is promising. For larger heavy-duty trucks, measures like improving fuel standards and promoting freight demand to move to railway and waterway transport will remain critical for decarbonisation.

The Vietnamese power sector is not expected to face a significant strain from EV charging before 2030, although the impact will grow thereafter. To meet rising EV charging demand, the nation will need to increase electricity generation by up to 5% and network capacity by 4% by 2035. By 2050, these figures will rise to 30% for electricity generation and 15% for transmission capacity if the Government’s EV adoption targets for 2050 are fully achieved.

As such, the country will need to invest up to US$9 billion in additional power sector investments by 2030 in order to support EV growth, as well as US$14 billion a year between 2031 and 2050, on top of investment for implementing the current Eighth Power Development Plan.

The report was prepared with financial support from the Australian Government through the Australia–WB Strategic Partnership (ABP2).