The Vietnam electric car market was valued at USD 3.5 Billion in 2025 and is forecast to reach USD 13.6 Billion by 2034. It is expected to grow at a compound annual growth rate (CAGR) of 16.14% between 2026 and 2034. This growth is driven by factors such as increasing environmental awareness, government policies promoting EV adoption, expanding charging networks, rising fuel costs, and a growing middle-class population improving EV affordability.

Study Assumption Years

• Base Year: 2025

• Historical Year/Period: 2020-2025

• Forecast Year/Period: 2026-2034

Vietnam Electric Car Market Key Takeaways

• The Vietnam electric car market size was valued at USD 3.5 Billion in 2025 with a CAGR of 16.14% for the forecast period 2026-2034.

• By Type: Battery electric vehicles dominate with a 58.03% market share in 2025, supported by government incentives and expanding charging infrastructure.

• By Vehicle Class: Mid-priced vehicles lead with a 67.01% share in 2025, due to affordability and practicality for the growing middle class.

• By Drive Type: Front wheel drive holds the largest segment at 50.06% in 2025, favored for efficiency and cost-effectiveness.

• By Region: Southern Vietnam dominates with a 48.4% market share in 2025, benefiting from economic concentration and advanced infrastructure.

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Market Growth Factors

Strong government policies support and incentivize programs so they reduce special consumption taxes for electric vehicles through tax incentives plus exempt import duties, which reduces upfront costs to the consumer, and they waive registration fees so they reduce the barriers to purchase. Regarding the national carbon neutrality goal, the government plans to install 100,000 to 350,000 EV charging stations during 15 years to accommodate up to one million EVs by 2030.

About air quality, urban Vietnamese consumers are environmentally aware with worry. This increases the demand for clean transport solutions. Vehicle emissions pollute the air within major cities. Younger consumers consider environmental issues when they purchase vehicles. Corporates use sustainability strategies to improve the emissions performance of their fleets.

Expanded plans aim to reduce range anxiety. Further, public charging is being deployed at a rapid clip in metropolitan areas and corridors. Hanoi parking lots must have EV chargers installed in 10% to 30% of spaces by 2026. Fast charging in mid-journey and intercity corridors between major cities is also planned for implementation during longer journeys. Nevertheless, home charging avoids the need to make a stop at a fuel station and is aligned to typical driving patterns.

Market Segmentation

Type:

• Battery Electric Vehicle: Dominates with 58.03% share in 2025 due to government incentives including registration fee exemptions and reduced taxes. Rapid charging infrastructure development supports urban usage and daily commuting.

Vehicle Class:

• Mid-Priced: Leads with 67.01% market share in 2025. It combines affordability and features suited for the expanding middle class, supported by significant deliveries from VinFast and competitive financing options.

Drive Type:

• Front Wheel Drive: Holds 50.06% share in 2025, favored for lower manufacturing complexity, enhanced energy efficiency, and suitability for Vietnamese roads. VinFast’s VF 5 leads deliveries in this category.

Region:

• Southern Vietnam: Represents 48.4% market share in 2025, anchored by Ho Chi Minh City’s economic strength, higher incomes, infrastructure development, and commercial fleet electrification demand.

Regional Insights

Southern Vietnam dominates the electric car market with a 48.4% share in 2025, driven by Ho Chi Minh City’s economic concentration, higher household disposable incomes, and advanced charging infrastructure. Progressive urban policies encourage clean transportation, while commercial activities fuel fleet electrification. The region's technology-savvy consumers and sustained urbanization underpin its leadership and forecasted revenue growth.

Recent Developments & News

In October 2024, BYD expanded its presence in Vietnam by launching the Han EV sedan and M6 MPV, raising its local model count to five. These launches complement earlier introductions like the Dolphin, Seal, and Atto 3, highlighting BYD’s commitment to EV accessibility.

In September 2024, Chinese premium electric vehicle brand Zeekr, owned by Geely, entered Vietnam via distribution with Tasco. Targeting high-end buyers, Zeekr offers advanced safety and driver-assistance technologies and joins other Chinese brands like BYD and Lynk & Co in growing the luxury EV segment.

Key Players

• VinFast

• BYD

• Zeekr

• Lynk & Co

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