Vietnam Electric Vehicle Market Size (2024 - 2029)

The Vietnam Electric Vehicle Market is projected to experience significant expansion over the forecast period, driven by a combination of factors such as rising demand for fuel-efficient and low-emission vehicles, stringent vehicle emission regulations, and decreasing battery costs. The government's efforts to promote electric mobility, including regulations to reduce fossil fuel dependency, investments in EV charging infrastructure, and financial incentives for EV adoption, are expected to further stimulate market growth. Additionally, the growing middle class and tech-savvy young population in Vietnam, with their focus on environmental sustainability and advanced technologies, are anticipated to contribute to the market's robust development.

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Market Size of Vietnam Electric Vehicle Industry

Vietnam Electric Vehicle Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 2.48 Billion
Market Size (2029) USD 5.67 Billion
CAGR (2024 - 2029) 18.00 %
Market Concentration Medium

Major Players

Vietnam Electric Vehicle Market Major Players

*Disclaimer: Major Players sorted in no particular order

Vietnam Electric Vehicle Market Analysis

The Vietnam Electric Vehicle Market size is estimated at USD 2.48 billion in 2024, and is expected to reach USD 5.67 billion by 2029, growing at a CAGR of 18% during the forecast period (2024-2029).

In the medium term, increasing demand for fuel-efficient, high-performance, and low-emission vehicles, increasingly strict laws and regulations on vehicle emissions, declining battery costs, and other factors are expected to drive market growth between 2024 and 2029.

Electric mobility is gaining popularity throughout the country, mainly due to government regulations aimed at phasing out fossil fuel-powered vehicles, government spending to improve public EV charging infrastructure, and initiatives such as subsidies and tax refunds to encourage the adoption of EVs. All of these measures are expected to contribute to the market's growth.

The increasing middle class and young population and their interest in cutting-edge technologies, fuel efficiency, and environmental awareness are expected to drive the Vietnamese electric vehicle market for double-digit growth.

Vietnam Electric Vehicle Industry Segmentation

An electric vehicle is powered by one or more electric motors that use energy stored in batteries. It doesn't rely on any liquid fuel components or have a tailpipe. \

The Vietnamese electric vehicle market is segmented by vehicle type and propulsion. By vehicle type, the market is segmented into passenger cars and commercial vehicles. By propulsion, the market is segmented into battery electric vehicles, plug-in hybrid electric vehicles, hybrid electric vehicles, and fuel cell electric vehicles. For each segment, the market sizing and forecast have been done based on the value (USD).

By Vehicle Type
Passenger Cars
Commercial Vehicles
By Propulsion
Battery Electric Vehicles
Plug-in Hybrid Electric Vehicles
Hybrid Electric Vehicles
Fuel Cell Electric Vehicles
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Vietnam Electric Vehicle Market Size Summary

The Vietnamese electric vehicle market is poised for significant growth, driven by a combination of government initiatives, regulatory measures, and increasing consumer interest in sustainable transportation. The government's commitment to phasing out fossil fuel-powered vehicles and enhancing public EV charging infrastructure is a key factor propelling the market forward. Additionally, policies such as subsidies, tax refunds, and waived registration fees for battery electric vehicles are designed to make EVs more accessible and affordable, thereby encouraging widespread adoption. The growing middle class and young population, with their affinity for cutting-edge technologies and environmental consciousness, further bolster the demand for electric vehicles. This shift is not only transforming the transportation sector but also contributing to a reduction in greenhouse gas emissions, aligning with the country's broader environmental goals.

The market landscape is characterized by the active participation of major automotive players like VinFast, Hyundai, and Mercedes-Benz, who are introducing new electric models and expanding manufacturing capabilities. These developments, coupled with strategic partnerships and investments in infrastructure, are expected to create lucrative opportunities in the coming years. The Vietnamese government's ambitious Action Program on Green Energy Transition aims to achieve net-zero emissions by 2050, further supporting the transition to electric mobility. As a result, the market for electric vehicles, including passenger cars and commercial vehicles, is anticipated to experience robust growth, with a focus on battery electric vehicles and eco-friendly transport solutions.

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Vietnam Electric Vehicle Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

      1. 1.1.1 Government Initiatives are Expected to Enhance the Electric Vehicle Sale

    2. 1.2 Market Restraints

      1. 1.2.1 Lack of Charging Stations

    3. 1.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION (Market Size in Value - USD)

    1. 2.1 By Vehicle Type

      1. 2.1.1 Passenger Cars

      2. 2.1.2 Commercial Vehicles

    2. 2.2 By Propulsion

      1. 2.2.1 Battery Electric Vehicles

      2. 2.2.2 Plug-in Hybrid Electric Vehicles

      3. 2.2.3 Hybrid Electric Vehicles

      4. 2.2.4 Fuel Cell Electric Vehicles

Vietnam Electric Vehicle Market Size FAQs

The Vietnam Electric Vehicle Market size is expected to reach USD 2.48 billion in 2024 and grow at a CAGR of 18% to reach USD 5.67 billion by 2029.

In 2024, the Vietnam Electric Vehicle Market size is expected to reach USD 2.48 billion.

Vietnam Electric Vehicle Market Report Snapshots

Vietnam Electric Vehicle Market Size & Share Analysis - Growth Trends and Forecasts (2024 - 2029)