Local car market sees a significant growth of electric and hybrid vehicles

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This growth is attributed to increasing demand for environmentally friendly transportation options.

The Rise of Electric and Hybrid Vehicles in Việt Nam

Market Trends and Drivers

The Vietnamese government has set ambitious targets to reduce greenhouse gas emissions and promote sustainable development. As a result, the demand for electric and hybrid vehicles is on the rise.

The top five brands in the market are VinFast, Suzuki, Honda, Toyota, and Hyundai.

Market Share

VinFast Leads the Market

VinFast, a Vietnamese automaker, has taken the lead in the green car market in Việt Nam in 2024. With 87,000 electric cars sold, the company has demonstrated a strong local brand preference and trust among consumers. This significant market share can be attributed to several factors, including:

  • VinFast’s commitment to sustainability and environmental protection
  • The company’s focus on producing high-quality, affordable electric vehicles
  • Effective marketing strategies that have helped to build brand awareness and loyalty

    • Suzuki and Honda Follow Close Behind

    Suzuki and Honda, two well-established Japanese automakers, have also made significant inroads in the green car market in Việt Nam.

    This move aims to encourage the transition from traditional fossil fuel-based vehicles to cleaner, more sustainable alternatives.

    The Rise of Electric Vehicles in Việt Nam

    Vietnam has set ambitious targets to reduce its carbon footprint, with a goal of achieving carbon neutrality by 2050. To support this vision, the government has introduced various policies to promote the adoption of electric vehicles (EVs). One of the most significant incentives is the zero per cent registration fee for battery electric vehicles.

    Key Benefits of Electric Vehicles

  • Zero Emissions: Electric vehicles produce zero tailpipe emissions, reducing air pollution and greenhouse gas emissions. Lower Operating Costs: EVs are generally cheaper to run, with lower fuel costs and reduced maintenance needs. Improved Performance: Electric vehicles offer smooth, quiet, and responsive acceleration. ## The Impact of Electric Vehicles on the Environment**

    • The Impact of Electric Vehicles on the Environment

    The adoption of electric vehicles is expected to have a significant impact on the environment. By reducing greenhouse gas emissions and air pollution, EVs can help mitigate the effects of climate change. Reduced Greenhouse Gas Emissions: Electric vehicles produce zero tailpipe emissions, reducing the amount of greenhouse gases released into the atmosphere. Improved Air Quality: EVs can help reduce air pollution, improving the health and well-being of citizens.**

    The Role of Government Incentives

    The government’s commitment to carbon neutrality by 2050 is driving strong policies to support electric vehicle adoption. Increased Adoption: The zero per cent registration fee is expected to increase the adoption of electric vehicles, making them more competitive with traditional fossil fuel-based vehicles.

    The Vietnamese government has set ambitious targets for the electric vehicle (EV) market, aiming to reach 1 million EVs on the road by 2025.

    The Rise of Electric Cars in Việt Nam

    Vietnam has been actively promoting the adoption of electric vehicles (EVs) as part of its efforts to reduce greenhouse gas emissions and meet global green transformation goals.

    Government support is crucial for the growth of the electric vehicle industry.

    The Need for Robust Government Support

    The government plays a crucial role in shaping the future of the electric vehicle (EV) industry. To achieve the ambitious growth target of 25-30 per cent market share, the industry will require continued robust support from the government. This support can take various forms, including:

  • Investment in infrastructure: Governments can invest in the development of charging stations, which is essential for widespread adoption of EVs. This can include the construction of new charging points, the upgrade of existing ones, and the development of fast-charging corridors along highways. Research and development: Governments can provide funding for research and development of new battery technologies, electric motors, and other components that are critical to the development of EVs. This can help car manufacturers to improve the efficiency, range, and affordability of EVs. Tax incentives: Governments can offer tax incentives to encourage consumers to purchase EVs.

    According to the Ministry of Planning and Investment, the country aims to increase its GDP by 6.8% in 2023, with a focus on sustainable development and environmental protection. The government has set ambitious targets for the real estate sector, including a 10% annual growth rate and a target of 1.5 million new housing units by 2025.

    The Rise of the Circular Economy in Vietnam

    Vietnam is poised to become a leader in the circular economy, a concept that emphasizes the reuse and recycling of resources, reducing waste, and promoting sustainable development.

    2022 was a year of growth for Vietnam’s economy, marked by a significant increase in the VN-Index, which reached 1,280 points. The VN-Index is a key indicator of the country’s stock market performance. As of 2022, the VN-Index has surpassed 1,000 points, indicating a strong and growing economy.

    The VN-Index: A Key Indicator of Vietnam’s Economy

    The VN-Index is a widely followed indicator of Vietnam’s stock market performance. It is calculated by the Ho Chi Minh City Stock Exchange (HCMCSE) and is considered a key benchmark for the country’s economy. The VN-Index is a composite index that takes into account the performance of the top 300 listed companies on the HCMCSE.

    Key Features of the VN-Index

  • The VN-Index is calculated on a price-weighted basis, with the largest companies having the greatest impact on the index. The index is calculated daily, and the results are published on the HCMCSE website. The VN-Index is widely followed by investors, analysts, and the media, providing valuable insights into the country’s economic performance. ## Market Gains and Declines*

    • Market Gains and Declines

    In 2022, the VN-Index experienced significant gains, reaching 1,280 points.

    The Rise of Non-Budget Investment in Vietnam

    Vietnam’s economy is experiencing a significant shift towards non-budget investment, with various regions and provinces setting ambitious targets for this year. This trend is expected to have a profound impact on the country’s economic growth and development.

    Key Drivers of Non-Budget Investment

    Several factors are driving the growth of non-budget investment in Vietnam. These include:

  • Government support: The Vietnamese government has implemented policies and incentives to encourage non-budget investment, such as tax breaks and subsidies for specific industries. Infrastructure development: The country’s infrastructure is being upgraded, with a focus on transportation, energy, and telecommunications. This is attracting significant investment from both domestic and foreign sources. Human capital development: Vietnam is investing heavily in education and training, which is helping to develop a skilled workforce that can attract non-budget investment. ### Regional Variations*

    • Regional Variations

    Non-budget investment is not uniform across Vietnam’s regions.

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