HSBC Bank estimates that Vietnam will need around 12.3 billion USD to construct enough charging stations to support the growing popularity of electric cars in the country. A report by HSBC Bank titled “Vietnam At A Glance: The Story of Electric Vehicles” 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.
The bank predicts that manufacturers may face challenges in popularizing electric cars due to users’ hesitancy caused by the lack of charging stations, high battery and car prices. To address these barriers, significant investment and energy resources will be required for the development of infrastructure, particularly charging stations, from 2024 to 2040.
Currently, Vietnam 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 will continue growing at a steady pace over the next decade
