Vietnam is set to subsidize electricity prices for electric vehicle (EV) charging stations as part of its broader initiative to promote EV usage and fulfill its energy transition commitments. The subsidy scheme is expected to be submitted to the central government by mid-September for approval, according to a government statement.
This move aligns with Vietnam’s target of achieving carbon neutrality by 2050, mirroring the environmental commitments made by advanced economies. The country, which is home to the EV manufacturer VinFast, currently hosts over 150,000 EV charging ports, predominantly operated by VinFast.
KPMG report said one of the key factors that contribute to Vietnam’s potential in the EV market is the growing manufacturing capabilities in the country. Some ICE and EV models are now produced domestically and exported. The emergence of electric vehicles (EVs) has presented new opportunities for the country to become a regional or even global EV powerhouse.
Vietnam electric vehicle market is expected to reach $5.67 billion by 2029 from $2.48 billion in 2024, growing at a CAGR of 18 percent during the forecast period (2024-2029), according to a report from Mordor Intelligence.
“Green energy transition is an essential and important task in the process of realizing green development objectives and in fulfilling Vietnam’s international commitments,” the government emphasized in its statement.
In addition to subsidizing charging stations, the government is also working on providing incentives for EV production and imports. These incentives aim to encourage consumers to transition from internal combustion engine vehicles to electric alternatives.
The government has committed to ensuring that all urban areas in the country are equipped with public EV charging systems. A unified set of technical standards for these stations is expected to be issued by the end of the month.
Vietnam has previously implemented policies to support the EV market, including exempting registration fees and reducing special consumption tax for new EVs. These efforts are part of a comprehensive strategy to support the growth of the EV sector and meet the nation’s green development goals, Reuters news report said.