HSBC Bank estimates that Vietnam would need an investment of about 12.3 billion USD to build enough charging stations to support the popularity of electric cars in the country. The report “Vietnam At A Glance: The Story of Electric Vehicles” by HSBC Bank highlights the untapped potential of Vietnam’s electric car market, especially considering that more than 60% of people own motorbikes and only 5.7% own cars. Previously, the Vietnam Automobile Manufacturers Association (VAMA) predicted that by 2040, there would be 3.5 million electric cars on the road.
However, HSBC points out that manufacturers may face challenges in popularizing electric cars due to users’ hesitance caused by the lack of charging stations, high battery and car prices. Therefore, the development of infrastructure, particularly charging stations, will be crucial for the growth of electric vehicles in Vietnam. The bank estimates that the country needs significant investment and energy resources to support electric vehicles from 2024 to 2040.
Vietnam currently has nearly 150,000 electric vehicle charging ports, mainly located in residential areas, shopping centers, and parking lots. However, there is a lack of charging stations on highways, which presents a barrier to widespread adoption of electric vehicles. By investing in charging stations in key areas, users may feel more confident in choosing electric vehicles as their primary mode of transportation.
To address price barriers, Vietnam has implemented tax policies and subsidies for electric car buyers. Despite some challenges, there has been progress in the sector, such as partnerships between Vietnamese and foreign companies to develop electric vehicle components. HSBC believes that Vietnam has the potential to excel in the transition to green transportation by leveraging partnerships and addressing barriers to electric vehicle adoption.
In addition to electric cars, the electric motorbike market in Vietnam is forecasted to thrive due to affordability and a high localization rate. Vietnamese people are more familiar with motorbikes than cars, which contributes to the potential growth of the electric motorbike market. Domestic manufacturers are expected to play a significant role in the electrification of two-wheeled vehicles, with sales forecasted to increase significantly by 2036.
Overall, HSBC predicts that Vietnam’s electric vehicle market, including motorbikes and cars, will continue to grow, with sales projected to reach 2.5 million units by 2036. By addressing infrastructure, price, and ecosystem challenges, Vietnam has the opportunity to accelerate its transition to green transportation in the coming years.