Vietnam’s EV Market

Expanding on GLOBAL ANGLE’s expertise of the Vietnam  and electric vehicle (EV) market, this article dives into Vietnamese consumers’ attitudes about electrification. 

What does Vietnam’s EV Landscape Look Like Today?

A fast-growing market:

• Vietnam is experiencing an EV boom, and its automotive market is the fastest growing and ‘most electrification-driven’ in ASEAN.
• As of the third quarter of 2025, sales of electrified vehicles and xEVs, which include hybrids, plug-in hybrids and battery-electric models, were increasing at 62% on-year.
• Vietnamese consumers’ perception towards EVs are among the most positive in the world.

Most popular EV types:

• Smaller EVs like bikes, motorcycles and scooters are the most popular vehicle choice among Vietnamese consumers, but electric cars are gaining traction.

Key Players:

• The market is dominated by local brand VinFast, but cost-competitive Chinese brands and global mass-market OEMs are entering.

What are Consumers’ Preferences for Future Vehicle Purchases?

Source: KPMG

• The majority of Vietnamese consumers prefer full EVs for their future vehicle purchase, showing positive perceptions towards electrification.
• Internal combustion engine (ICE) models are falling behind, as more than 70% of consumers expressed their preference in purchasing EVs (full and hybrid) in the future.

Source: KPMG

• The biggest group of consumers who prefer new technologies like full EVs or hybrids are Gen Zs and millennials who have more financial independence.

What is Driving Vietnamese Consumers’ Preferences for EVs?

Government policies:

• The Vietnamese government incentives reduce EV purchase prices by over VND 100 million per unit, with EV registration fees waived until February 2027 and import duties for ASEAN-built EVs kept at zero.
• Discretionary consumer choice is bypassed as Vietnam’s 2050 net-zero pledge has led to an influx of green vehicles in the country.

Environmental concerns:

• Worsening air quality in large cities like Ho Chi Minh City and Hanoi steered public opinion in favour of EVs, particularly among Gen Zs and millennials. 

How Promising is the Future of Vietnam’s EV Landscape?

Continuous growth expected:

• Vietnam’s EV market value is projected to grow rapidly from USD 3.12 billion in 2025 to USD 8.84 billion in 2031, at a 18.95% CAGR over 2026-2031.
• Electric passenger car penetration is expected to increase from 0.3% of the national fleet in 2022 to more than 20% by 2030.