Charging stations - The "key" to promoting electric vehicles in Vietnam
According to a report from the World Bank, for electric vehicles to become mainstream, the charging station system plays a key role. It is estimated that Vietnam needs 2.2 billion USD in 2030 to build a network of public charging stations, and this figure will increase to 13.9 billion USD in 2040. By 2050, the total investment will reach 32.6 billion USD.
The public-private partnership model is being evaluated as the main strategy to attract investment in developing charging stations. Major manufacturers such as VinFast have pioneered in this field, not only investing themselves but also implementing franchise models, encouraging businesses and people to participate.
Associate Professor Dr. Dam Hoang Phuc (Hanoi University of Science and Technology) emphasized: “Investing in charging stations is an inevitable trend, not only helping the transportation industry develop but also bringing long-term benefits to investors. When the infrastructure is completed, electric cars will become the top choice of Vietnamese people.”
Double benefits of switching to electric vehicles
The transition to electric vehicles will not only reduce dependence on imported oil and gas, but also create great benefits for the economy. According to the SPS roadmap, Vietnam can reduce up to 306.4 million liters of gasoline and 409.4 million liters of diesel by 2050. With the more ambitious ADS scenario, this figure increases to 360.9 million liters of gasoline and 524.5 million liters of diesel, equivalent to 498 billion USD in savings from 2024 to 2050.
Along with economic benefits, electric vehicles also contribute greatly to reducing greenhouse gas emissions. If the electric vehicle targets of Decision 876 are implemented, Vietnam will reduce 226 million tons of CO2 by 2050, equivalent to 60% of the emission reduction target in the NDC.
Electric vehicles also help reduce emissions of pollutants such as nitrogen oxides and particulate matter (PM10), reducing environmental damage and improving public health.
According to Ms. Nguyen Thi Phuong Hien, Deputy Director of the Institute of Transport Strategy and Development, “investing in charging stations is an essential step for the Government to effectively support the transition to green energy”.
To achieve the goal of greening transportation, Vietnam plans to have electric vehicle sales reach 78 million units by 2050. This figure includes two-wheelers, cars, buses and trucks, with the growth rate mainly concentrated in two-wheeled electric vehicles before 2035.
According to the report, electric two-wheelers currently account for 12% of the market share in Vietnam. With a variety of models and prices, along with high acceptance from consumers, this type of vehicle is leading the green revolution. However, from 2035, electric cars and trucks will become the trend, when vehicle prices decrease and charging station infrastructure is expanded.
VinFast, the pioneering electric vehicle brand in Vietnam, has achieved many impressive achievements. According to data from the beginning of the year to October 2024, the company has delivered more than 51,000 electric vehicles, taking the number 1 position in the Vietnamese automobile market. VinFast's success proves that, with the right strategy, the electric vehicle industry can develop rapidly, not only domestically but also internationally.
However, to promote it more strongly, there needs to be clear and consistent policies from the Government. This includes supporting electricity prices for charging stations, planning charging stations in urban areas, and financial incentives such as reducing special consumption tax and registration fees for electric vehicles.
