Vietnam en route with Electric Vehicles
The Vietnamese electric vehicle (EV) market is full of energy. Rapid economic growth is increasing disposable income levels and major infrastructure projects are improving connectivity. Although motorcycles are still the vehicle of preference, the car market has been steadily growing in importance. According to the International Organization of Motor Vehicle manufacturers, Vietnam possessed just 23 cars per 1,000 people in 2015. This compares with 439 in Malaysia, 228 in Thailand and 145 in Singapore (NIA 2018). UK based automotive market research firm, JATO Dynamics highlighted that Vietnam’s car market was the second fastest growing one in the world in 2016. Accordingly, BMO research expect the Vietnamese market to grow with 11.1% per year over 2017-2021 (BMO research 2018). In 2016, Vietnam reportedly spent nearly US$500,000 on purchasing EVs from overseas markets, including Japan, China and the US (Vietnamnet 2017). The Ministry of Industry and Trade expects new auto sales to more than double to 600,000 units annually in 2025 (NIA 2018).