Vietnam's EV passenger adoption is hindered by low salaries and a lack of incentives. However, over the projected period of 2023–2022, local production of EVs bearing the VinFast, Wuling HongGuang, Skoda, and Hyundai brands will propel the market's rapid expansion.

According to the report, passenger EV sales in Vietnam will increase from 8,400 units in 2022 to around 65,000 units annually between 2023 and 2032, growing at an average annual rate of 25.8 per cent. Additionally, this will lead to an increase in the passenger EV penetration rate from 2.9 per cent in 2022 to 13.6 per cent by 2030.

In 2023, it is predicted that sales of passenger EVs will rise by 114.8 per cent on-year to reach roughly 18,000 units. Sales of battery electric cars are anticipated to expand by 104.4 per cent annually to reach over 17,000 units in 2023, while sales of the sub-segment of plug-in hybrid vehicles are anticipated to rise by nine times annually to reach about 1,100 units.

"Vietnam's passenger EV fleet is predicted to increase from just under 27,000 units in 2023, to a high of around 390,000 units by the end of our 2023-2032 forecast period. This will represent nearly 3.1 per cent of Vietnam's passenger vehicle fleet in 2032, up from below 1 per cent recorded in 2022," the report said.

Overall, Vietnam’s EV adoption to gain more traction in the two-wheeled segment due to the high motorcycle ownership rates in the country. Indeed, at the end of 2022, it is estimated that around 2 million electric motorcycles have been sold in Vietnam, dwarfing the expected 18,000 passenger EV units to be sold in Vietnam in 2023.

While Vietnam's EV charging network is rapidly expanding, most of the charging stations or locations cater for electric two-wheelers. Currently, VinFast dominates in the local EV charging industry. However, we expect more players to enter the Vietnamese market from 2023 onwards. Indeed, in the first half of 2023, EBOOST announced plans to build an EV charging network in Vietnam.

Meanwhile, Foxconn announced that it will build an EV charging and component production plant in Vietnam through an investment of $250 million, which will help facilitate a more rapid expansion of the local and the wider Southeast Asia regional EV charging networks.