Germany and South Korea strongly "pump money" into electric vehicles
Germany - the largest economy in Europe - has just announced the expansion of its electric vehicle subsidy program from 2026. According to Reuters, the German government plans to implement a budget package of up to 3 billion euros, to support about 800,000 electric vehicles by 2029. The subsidy level ranges from 1,500 to 6,000 euros per vehicle, depending on the beneficiaries and vehicle lines.
A notable point of the new program is the clear priority focus for low and middle-income households. Besides pure electric vehicles, Germany also includes vehicles using range extenders in the subsidy category, showing a flexible approach to encourage people to abandon internal combustion engine vehicles, even when they are not ready to switch completely to pure battery electric vehicles.
The program applies from January 1, 2026, in the context of Germany's efforts to regain the growth momentum of the electric vehicle market. Analysts believe that the restart of large-scale support policies not only helps consumers feel more secure when buying electric vehicles, but is also a strong signal of the government's long-term commitment to the carbon neutrality roadmap.
In Asia, South Korea is also accelerating in its own way. According to the Korea Times, the Seoul city government has announced a plan to expand electric vehicle purchase subsidies in 2026, by combining support from the central budget and the city budget. The goal is to accelerate the process of eliminating gasoline and oil vehicles in the most populous urban area of the country.
Seoul plans to support more than 22,500 electric vehicles in 2026, including private cars, taxis, trucks and even buses. Notably, people who switch from gasoline or diesel cars to electric vehicles will receive an additional support of about 203 USD per vehicle. This policy also prioritizes low-income households, first-time car buyers and families, clearly reflecting the fair orientation in green transition.
The combination of multi-layered subsidies - from central to local - shows Seoul's determination not to let the transportation electrification process stop at just target statements, but to be realized by specific, easily accessible incentives for people.
Vietnam has many outstanding and effective support policies
Looking at the policies of Germany or South Korea, a common point can be seen: The State plays the role of "midwife" in the early stages of the transition process. Direct subsidies, tax exemptions and reductions, prioritizing low-income groups... are all tools used in parallel to expand the file of electric vehicle users.
In Vietnam, despite different economic conditions and budget sizes, the policies to encourage electric vehicles in the past have also been assessed as relatively clear. The most prominent is the 100% exemption of registration fees for battery electric cars - a direct incentive that significantly reduces initial costs for buyers. This policy has contributed to creating a boost for the electric vehicle market, especially in the early stages of forming new consumption habits.
In parallel with the role of the State, domestic enterprises also actively participate in "sharing the fire" with consumers. VinFast - the largest electric vehicle company in Vietnam today - has continuously launched programs that are considered quite aggressive, such as buying cars with an initial cost of nearly 0 VND, lending interest rate support, or preferential selling price packages, free battery charging... These policies help reduce financial pressure for buyers, especially customers who first access electric vehicles.
Reality shows that when incentives from public policies and efforts from businesses meet, the green transition process takes place faster and more sustainably. Experience from Germany or Seoul shows that electric vehicle subsidies are not just a short-term story, but need to be designed according to a multi-year roadmap, long enough to create trust for the market and consumers.
In the context of Vietnam pursuing emission reduction and sustainable development goals, continuing to improve the policy ecosystem for electric vehicles - from financial incentives, charging infrastructure, to support programs for low-income groups - will be a key factor. International trends are clearly showing: To eliminate internal combustion engine vehicles, we cannot just rely on technology, but also need strong and long-term policy "pushs".
