Electric cars - the inevitable trend of the future
Despite the change in US electric vehicle policy, European countries, China and many other countries are still promoting electric vehicle development. Why do you think electric vehicles are still the inevitable trend of the future?
- Electric vehicles are not only an alternative to fossil fuel vehicles, but also an inevitable trend in the transportation industry for three main reasons:
First, global policies are moving towards low emissions. Major markets such as the EU and China remain committed to phasing out gasoline-powered vehicles and promoting electric vehicles. Currently, more than 20 countries have set targets to ban internal combustion engine vehicles between 2035 and 2040. This is a strong driving force for the electric vehicle industry to continue to develop sustainably.
Second, manufacturing costs are falling thanks to technological advances. Over the past 10 years, the cost of batteries—the main driver of electric vehicle costs—has fallen significantly and is expected to continue to decline. Electric vehicles also have the advantage of operating costs that are about 20% lower than traditional gasoline vehicles thanks to fuel savings and reduced maintenance costs.
Third, the renewable energy ecosystem is increasingly complete. As the supply of electricity from renewable energy such as solar and wind power increases, electric vehicles can be integrated with smart energy storage systems, contributing to stabilizing the national grid.
So, while some supporting policies may change, pressure to reduce emissions, technological advances and changes in consumer behavior will continue to drive the electric vehicle trend to grow strongly in the future.
Vietnam faces changes in US electric vehicle policy
Vietnam has committed to reducing emissions and promoting electric vehicles. How do you think US policy changes will affect Vietnam’s electric vehicle strategy?
- US policies may impact the market, but Vietnam still has many advantages to maintain its electric vehicle development strategy.
First, adjustments in the global supply chain could create new opportunities. If the US changes its preferential policies for imported electric vehicles, manufacturers may have to look for alternative investment locations. With advantages in labor, geographical location and policies to attract foreign direct investment (FDI), Vietnam could become an attractive destination.
Second, competitive pressure in the domestic market will increase. As international electric vehicle manufacturers expand their markets outside the US, Southeast Asia, including Vietnam, will become a potential market. This creates greater competitive pressure but at the same time encourages Vietnamese enterprises to build component supply chains, localize production, and develop a comprehensive electric vehicle ecosystem.
Vietnamese enterprises need to take advantage of this period to shape long-term strategies, cooperate with strategic consulting organizations to effectively implement, and balance economic benefits and sustainable commitments.
Opportunity for Vietnam to develop electric vehicle industry
What opportunities can Vietnam take advantage of from the global trend of electrification of vehicles to boost the domestic electric vehicle industry?
- This is a favorable time for Vietnam to take advantage of the opportunity to develop the domestic electric vehicle industry and in fact, we have caught up quite well with this trend.
First, promote the development of green public transport. The deployment of electric buses, electric taxis and electrified public transport systems not only contributes to reducing emissions but also helps improve urban air quality.
Second, become a link in the electric vehicle supply chain. With advantages in labor and geographical location, Vietnam can attract investment in battery production, components and electric vehicle assembly. Some Vietnamese electric vehicle manufacturers have pioneered in laying the foundation for this industry, but to truly become an electric vehicle manufacturing hub, Vietnam needs more businesses to participate in the value chain.
If Vietnam takes advantage of this opportunity, it can not only be a market for electric vehicles but also a center for manufacturing and assembling electric vehicle components for the region and the world.
Thank you!
