Vietnam Electric Vehicle Market Projected to Expand at 18.12% CAGR Through 2030

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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Strategic Takeaways from the Report:

  • Market Sizing and Forecasting
  • Regulatory and Policy Influence
  • Competitive Trends and M&A Activity
  • Innovation Drivers and Disruptive Technologies
  • Investment Hotspots and Emerging Niches
  • Geographical Dynamics and Trade Flows

Vietnam Electric Vehicle Market Segment Overview & Classification

This market is categorized to offer targeted insights across various operational and consumer-related verticals.

Segment List:

By Propulsion Type

  • Battery Electric Vehicle (BEV) – Market Size & Forecast 2020–2030, USD Million
  • Plug-in Hybrid Electric Vehicle (PHEV) – Market Size & Forecast 2020–2030, USD Million
  • Hybrid Electric Vehicle (HEV) – Market Size & Forecast 2020–2030, USD Million
  • Fuel Cell Electric Vehicle (FCEV) – Market Size & Forecast 2020–2030, USD Million

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.

By Vehicle Type

  • Passenger Cars – Market Size & Forecast 2020–2030, USD Million
  • Commercial Vehicles – Market Size & Forecast 2020–2030, USD Million
  • Electric Two-Wheelers – Market Size & Forecast 2020–2030, USD Million
  • Electric Buses – Market Size & Forecast 2020–2030, USD Million

By Battery Type

  • Lithium-ion Battery – Market Size & Forecast 2020–2030, USD Million
  • Nickel-Metal Hydride Battery – Market Size & Forecast 2020–2030, USD Million
  • Others – Market Size & Forecast 2020–2030, USD Million

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.

By End-User

  • Private/Individual – Market Size & Forecast 2020–2030, USD Million
  • Commercial/Corporate Fleet – Market Size & Forecast 2020–2030, USD Million
  • Public Transport (e.g., E-buses) – Market Size & Forecast 2020–2030, USD Million

By Distribution Channel

  • Dealerships – Market Size & Forecast 2020–2030, USD Million
  • Direct Sales – Market Size & Forecast 2020–2030, USD Million
  • Online/E-Commerce – Market Size & Forecast 2020–2030, USD Million

By Region

  • Northern
  • Central
  • Southern
  • Southeast
  • Mekong Delta.

These divisions help clarify demand patterns and expected shifts.

Market Opportunities

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 Competitive Snapshot from 2025-2030

The report highlights established and emerging players in the global Vietnam Electric Vehicle Market, evaluating their strengths, challenges, and potential for innovation.

Key Competitors Include:

  • 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)
  • Others.

Their activities include partnerships, product launches, and geographic expansions.

Vietnam Electric Vehicle Industry Prime 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.

Frequently Asked Questions (FAQs):

  • What industries are most impacted by this market?
  • How is technology reshaping operations and offerings?
  • Which competitors dominate the landscape?
  • What risks could disrupt market expansion?
  • How should businesses respond to demand fluctuations?

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