Vietnam Electric Vehicle (EV) Market to Touch USD6.74 Billion Mark by 2030

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The Vietnam Electric Vehicle (EV) Market size was valued at around USD2.4 billion in 2024 and is expected to reach USD6.74 billion in 2030. Along with this, the market is estimated to grow at a CAGR of around 18.12% during the forecast period, i.e., 2025-30, cites MarkNtel Advisors in the recent research report. The growth is driven by the rapid inclination towards sustainable alternatives and greener practices due to rising environmental issues, continuous efforts of the Vietnamese government through significant investments and incentives for the encouragement of electric vehicles in Vietnam, technological advancements, efforts to improve electric infrastructures, etc., in the country. Additionally, several companies, along with the help of the country’s government, are proactively investing in the renewable energy sector and the infrastructure, including charging stations for electric vehicles in Vietnam, contributing to the market’s growth.

Also, battery electric vehicles are dominating this market due to the increased demand for rechargeable, non-fuel vehicles. Thus, the country is robustly expanding the production units for battery EVs in the country. It has created a demand for sustainable, high-energy-density raw materials to make reliable batteries for such EVs. Consequently, the demand for lithium-ion batteries has grown in the country to increase the production capacity of battery-based electric vehicles. It is leading to the overall growth of Vietnam’s electric vehicle industry.

Moreover, the latest innovations, such as Artificial Intelligence, Data Analysis, and Information Technology, have transformed the market by making modernized electric vehicles with autonomous systems, energy-efficient solutions, and increased efficiency and safety. Several Vietnamese companies, such as VinFast, Dat Bike, PEGA, etc., are actively incorporating these advancements in their EVs, thus contributing to the market’s growth. However, some of the remote areas lack electrified infrastructure, which is increasing the initial cost of the EVs in the country and is marked as a major challenge for this market, further, states the research report, “Vietnam Electric Vehicle Market Analysis, 2025.”

Vietnam Electric Vehicle Market Segmentation Analysis

Lithium-ion Battery Holds the Largest Market Share

Based on the battery type, the market is further bifurcated into Lithium-ion Battery, Nickel-Metal Hydride Battery, and Others. Lithium-ion Battery accounts for more than 60% of the market share. The dominance is due to the related benefits such as a high energy-density output, longer shelf-life, and low-maintenance cost, contributing to the overall market’s growth. Many manufacturing facilities are increasing their production capacity due to the rising demand to promote the adoption of EVs in the country. Additionally, the country is witnessing a high number of collaborations, such as Samsung SDI and Selex Motors, to increase the production capacity of the country. In addition, foreign direct investments have also increased in the country to promote the expansion of lithium-ion battery production, thus contributing to the segmental growth.

Battery Electric Vehicle (BEV) is the Preferred Propulsion Type

Battery Electric Vehicle (BEV) is dominating the Vietnam Electric Vehicle Market and holding more than 35% market share. The reason behind its supremacy over the other types of vehicles is the operational cost-effectiveness over traditional fuels such as diesel, gasoline, etc. Additionally, the government is extending the charging stations in the country to increase battery vehicle adoption in Vietnam. Also, these are fully operated by using electricity, unlike other hybrid models, which require electricity along with fuels, thus leading the market. Moreover, the batteries are reusable and have net-zero emissions as compared to the hybrid EVs, creating negligible pollution, therefore, they are still chosen as a better alternative.

Competitive Landscape

With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market companies, including VinFast Auto Ltd., Tesla Inc., Mercedes-Benz Vietnam, Toyota Motor Vietnam, Honda Vietnam, Hyundai Thanh Cong Vietnam, Kia Vietnam, TMT Motors, Nissan Vietnam, Dat Bike (for electric two-wheelers), Great Wall Motors (Haval), and Others are looking forward to strengthening their market positions.

Key Questions Answered in the Research Report

1. What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
2. What are the trends influencing the current scenario of the market?
3. What key factors would propel and impede the industry across the country?
4. How has the industry been evolving in terms of geography & product adoption?
5. How has the competition been shaping up across the country?
6. How have buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2020-30?
7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?