A fleet of VinFast's green taxi. (Photo courtesy of VinFast)

The electric and hybrid vehicle market in Vietnam is projected to experience significant growth, with forecasts indicating an increase of 25-30% in 2025, according to industry experts.

The projections by analysts show that by the end of this year, electric and hybrid vehicles will comprise approximately 15-20% of total passenger car sales in Vietnam. This growth is anticipated to be driven by popular models from manufacturers such as VinFast, Toyota, Honda, Hyundai, Kia, BYD and MG. The most dynamic and appealing segments for consumers are expected to be small electric cars, affordable electric vehicles and mid-range hybrids.

The Oto.com.vn Market Research Department under Nextgen Vietnam Joint Stock Company (Oto.com.vn) reports that the growth of the electric vehicles (EVs) market in Vietnam is driven by several key factors including government incentives, increasing infrastructure expansion for more EV charging stations, new model launches and rising consumer awareness.

The significant rise in green car sales in Vietnam in 2024 marks a strong shift towards sustainable transport. With 97,000 electric and hybrid vehicles sold, making up over 22% of total new passenger car sales, the market is clearly embracing environmentally friendly alternatives.

Of those VinFast dominated the market with 87,000 electric cars, showing strong local brand preference and trust. Toyota followed with 5,350 hybrid cars, reinforcing its hybrid technology expertise. Meanwhile, Suzuki and Honda sold 2,515 and 1,905 hybrid cars, respectively, indicating growing consumer interest in more fuel-efficient vehicles.

Vietnam’s commitment to carbon neutrality by 2050 is driving strong policies to support electric vehicle (EV) adoption. The Government has implemented significant incentives, including a zero% registration fee for battery electric vehicles (BEVs) from March 1, 2022, to February 28, 2025, followed by a 50% reduction compared to gasoline and diesel vehicles from March 1, 2025, to February 28, 2027.

At the same time, major enterprises such as VinFast, V-Green, Petrolimex, PV Power, EVN and private investors are rapidly expanding Vietnam’s EV charging infrastructure. These investments create more convenience for EV users, addressing a key barrier to adoption.

Growing environmental awareness and lower operating costs make EVs increasingly attractive to consumers. With strong policy support and market momentum, electric cars are becoming a mainstream trend in Vietnam, aligning with global green transformation goals.

The launch of VinFast's low-cost mini SUV VF3 in May 2024 created a market sensation, attracting nearly 27,700 deposits in just 66 hours and generating over 30,000 searches for 'VF3 car price' on Google. With the presence of models like VinFast VF3 and VF5, the Vietnamese market is also witnessing an influx of electric cars from China.

Demand for EV pricing information spikes during new car launch events, reflecting growing consumer interest. Many international brands plan to expand in Vietnam, introducing competitively priced EVs, making green vehicles more accessible to consumers.

To achieve a more ambitious growth target of 25-30% market share for electric vehicles, the industry will require continued robust support from the government. This includes further investment in infrastructure and research and development from car manufacturers.

The Government is already taking steps in this direction, such as planning to subsidise electricity prices for EV charging stations in order to promote the use of electric vehicles and meet energy transition commitments.