The electric vehicle market in Vietnam is on the rise, but challenges remain in its growth. According to a report by HSBC Bank, an estimated 12.3 billion USD investment is needed to develop enough charging stations to support the popularity of electric cars in the country. While previous predictions suggested there would be 3.5 million electric cars in Vietnam by 2040, HSBC believes that challenges such as high battery and car prices and limited charging station coverage need to be addressed.
To overcome these obstacles, HSBC emphasizes the importance of infrastructure development in the electric vehicle sector. They estimate that Vietnam needs 12.3 billion USD in investment and 14tWh of cumulative energy to support the growth of electric vehicles through 2040. The country currently has around 150,000 electric vehicle charging ports, but more investment is needed to expand this infrastructure, particularly along highways.
HSBC also suggests that tax policies, subsidies, and partnerships with foreign businesses can help overcome price obstacles and build a stronger ecosystem for electric vehicles in Vietnam. The bank highlights efforts by companies like VinFast and Chery Automobile to establish battery factories and electric vehicle manufacturing plants in the country.
While electric cars face challenges, the electric motorbike market in Vietnam is forecasted to be more favorable due to affordable prices and high localization rates. Domestic manufacturers like VinFast, Selex Motors, and Dat Bike are expected to play a key role in the growth of electric motorbikes in Vietnam. Overall, HSBC predicts that electric vehicle sales in Vietnam could reach 2.5 million units by 2036, showing significant growth potential for the sector.
In summary, with an estimated investment of 12.3 billion USD required for infrastructure development and expansion of charging stations along highways, as well as tax policies and subsidies implemented alongside partnerships with foreign businesses; it’s clear that there are significant opportunities for growth within Vietnam’s electric vehicle market.
However, it’s worth noting that while both batteries and cars have been identified as price barriers for some consumers; domestic manufacturers have also played a key role in making these products more affordable through localization efforts.
Furthermore