Vietnam Electric Vehicle Market Research Report: Forecast (2025-2030)

Market Definition

An electric vehicle is a type of vehicle which is operated with the help of electricity. It comprises an electric motor and a rechargeable battery that helps to reduce carbon footprints in the environment.

Market Insights & Analysis: Vietnam Electric Vehicle Market (2025-30):

The Vietnam Electric Vehicle Market size was valued at around USD 2.4 billion in 2024 and is expected to reach USD 6.74 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. The factors contributing to the market’s growth include the rapid shift of the country towards greener and more sustainable practices, government efforts to promote green mobility, increasing technological advancements, and the integration of IT and AI in electric vehicles. Additionally, rising government policies, such as the Green Transport Action Plan, reduced import duty taxes, and the Action Program for Green Energy Transition, contribute to the rapid adoption of these vehicles in the electrified transportation and renewable energy sectors.

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Also, several big EV manufacturing companies, such as V-Green, TMT Motors, etc., are enthusiastically investing substantially in improving the charging stations for electric vehicles in different areas of the country, which is creating substantial growth opportunities for the Vietnam Electric Vehicle industry. It is leading to the high growth of electric vehicles, which are battery-based. As a result, the country has witnessed a rapid expansion of lithium-ion battery production facilities in the country, as the demand for battery-based vehicles is increasing significantly in Vietnam, which is playing a key role in the market’s growth.

Moreover, technological innovations are transforming the EV Industry in Vietnam as various companies are investing in the integration of artificial intelligence and Information Technology in the latest models of Electric Vehicles in the country for high autonomous driving, encouraging energy efficiency, and driver & passenger safety. However, the high upfront cost of these vehicles is a major challenge for this market because customers still prefer traditional fuel-based automobiles due to their cost-effectiveness.

Vietnam Electric Vehicle Market Driver:

Rising Environmental Concerns Boosting Market Growth – The rising awareness regarding environmental health is driving the market’s growth. Vietnam has witnessed a peak in air pollution in recent years due to transportation emissions. It is the 2^nd most polluted country in the Asian region, which is causing severe health problems in the country. Respiratory diseases like asthma are major outcomes of these emissions. As per the National Library of Medicine (2023), over 2.9 million individuals in Vietnam were suffering from Asthma due to rising air pollution in the country. Additionally, WHO has stated that over 59,000 deaths annually are due to air pollution in the country, which is contributing to the rapid shift of Vietnamese citizens towards greener practices, including electric vehicles. As a result, there has been about a 560-fold increase in EV adoption in the last four years (2020-2024) in Vietnam, which shows a substantial increase in the market.

Vietnam Electric Vehicle Market Opportunity:

Government Efforts to Promote Green Transportation – The Vietnamese government is actively promoting Electric vehicles in the country by significantly investing and drafting various policies such as the Registration Fee Exemption Policy, Green Transition Policies, etc. For instance, the government has extended the registration fee exemption policy up to 2027, under which there is a 100% exemption on the registration of Electric Vehicles (EVs) in Vietnam.  

Additionally, the Green Transition policies such as the National Development Plan 8 aimed to reduce coal-based plants. It is leading to the high requirement for alternatives for transportation, opening opportunities for the adoption of more EVs in the country. Moreover, the Vietnam Electricity Group (EVN) (2023), and several manufacturing companies such as VinFast are substantially investing in new charging stations across Vietnam for EVs. All these efforts are offering ample opportunities for the market to grow substantially in the country.

Vietnam Electric Vehicle Market Challenge:

Initial Cost Burden Hindering Market Growth – The high initial cost is a major obstacle to Electric Vehicle adoption in the country because a major fraction of the buyers is unable to afford such high-priced vehicles. They usually prefer traditional vehicles, which are cost-effective for them. Mainly, the batteries alone account for about 40% of the total electric vehicle cost, making EVs substantially expensive. Additionally, the high cost is due to the incorporation of advanced technologies, including different control software in the latest EVs. For instance, conventional gasoline-based vehicles cost around USD10,000, while the new models of EVs in Vietnam are nearly double in price and cost a minimum of USD20,000. Consequently, customers still prefer traditional fuel-based vehicles in Vietnam.

Vietnam Electric Vehicle (EV) Market Trend:

Increasing Integration of IoT & AI-Powered Features in EVs – The latest technological innovations, such as the incorporation of Artificial Intelligence and the Internet of Things, have modified the electric vehicle market in Vietnam. Many companies such as PEGA, Dat Bike, VinFast, and Selex Motors are proactively manufacturing electric vehicles with these advanced features, including AI and IoT. For instance, Vin Fast (2024) has discovered an AI-powered Mirror Sense technology in electric vehicles that has increased safety measures by detecting the driver’s head position and corresponding mirror adjustments. Additionally, it has launched IoT-connected smart charging stations for EVs in Vietnam.

Moreover, Dat Bike, Selex Motors, and PEGA are manufacturing electric scooters with IoT connections providing battery monitoring, and smart gadgets connection systems such as mobile phones, smart watches, etc. Also, companies are planning to expand these integrations in EVs, such as VinFast has collaborated with Amazon to launch Alexa voice AI in electric vehicles in Vietnam in their VF8 and VF9 models, which is a great opportunity for the market to further grow.

Vietnam Electric Vehicle Market (2025-30): Segmentation Analysis

The Vietnam Electric Vehicle study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2025–2030 at the national level. Based on the analysis, the market has been further classified as:

Based on Propulsion Type:

• Battery Electric Vehicle (BEV)
• Plug-in Hybrid Electric Vehicle (PHEV)
• Fuel Cell Electric Vehicle (FCEV)

Out of these, the Battery Electric Vehicle (BEV) is the leading segment, which accounts for more than 35% market share. The growth is driven by the expansion of charging stations for battery EVs across the country. These efforts are made by the government and several manufacturing companies to increase the adoption of battery vehicles in the country. These use 100% electricity as compared to the other hybrid EVs, thus, they are the most sustainable alternatives preferred by the customers. Additionally, the fluctuating fuel prices are raising the demand for battery electric vehicles. For instance, on average, gasoline prices increased by more than 2% in 2025. Also, diesel prices rose by more than 2%, thus, customers are now attracted to electric vehicles in the country.

Based on Battery Type:

• Lithium-ion Battery
• Nickel-Metal Hydride Battery
• Others

Among these, the Lithium-ion Battery segment holds the largest market share of more than 60%. The contributing factor to its dominance in the market is the high-energy-density, low-maintenance, and longer lifespan as compared to the nickel-metal hydride battery. VinES is actively producing lithium-ion batteries, and it is one of the largest manufacturing plants in the country. For instance, the average production capacity of this plant is about 1,00,000 batteries per year, and it is planning to further expand the production capacity to more than 1 million lithium-ion batteries annually.

Moreover, various manufacturing units such as Samsung and Selex Motors are partnering to increase the manufacturing units and lithium-ion battery supply in the country. Samsung SDI is the largest supplier of lithium-ion batteries, accounting for more than 55% supply, thus contributing to the dominance of this segment in Vietnam, therefore increasing the market growth.

Vietnam Electric Vehicle Industry Recent Development:

• 2025: Honda Vietnam has launched new electric scooter models, including the locally-made ICON e: (1.5kW battery, 50km range), and expanded sales of the CUV e: and ICON e: commuter scooters, targeting both urban commuters and young riders.
• 2024: VinFast Auto Ltd. has launched an EV charging station company called V-green across Vietnam mainly for VinFast cars, aiming to make Vietnam a world leader in electric vehicle charging infrastructure.

Gain a Competitive Edge with Our Vietnam Electric Vehicle (EV) Market Report

1. Vietnam Electric Vehicle Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. Vietnam Electric Vehicle Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

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