Vietnam is widely recognized as a motorcycle society. Now, as it becomes more affluent and approaches a full-scale transition to automobiles, it appears the shift will be toward electric vehicles first. Riding the wave of growing public concern over urban air pollution, the government is actively promoting EV conversion policies. Participation from overseas manufacturers is also increasing, accelerating the spread of electric vehicles and hybrid vehicles.

Rapid EV Adoption

The EV market size is estimated at approximately 3 billion USD in 2025, growing at an average annual rate of 18% and projected to reach 7 billion USD by 2030[1]. Sales volume increased roughly 20-fold over the two-year period from 2022 to 2024. During the same period, hybrid vehicles also increased more than threefold. Consumer interest in environmentally friendly vehicles is rapidly rising[2] .

However, Vietnam’s automobile sales in 2023 saw a significant decline compared to 2022. The main factors were the expiration of a temporary 50% reduction in registration tax for domestically assembled vehicles, which had boosted sales in 2022, and the loss of this short-term demand stimulus effect. Simultaneously, against a backdrop of slowing economic growth and weakening exports, consumers became more cautious about purchasing high-value durable goods. Additionally, high interest rates and tightened credit conditions reduced the appeal of auto loans.

Automobile Sales Volume

Unit: Thousand units

Source: B&Company analysis

EV Brands

VinFast is the largest player. It holds a 75% share of the 2024 EV market, followed by overseas brands like BYD, Wuling, and Hyundai.[3]

VinFast VF7 launched in November 2023

Source: Vneconomy

EV Brand Comparison

Source: B&Company analysis

Hybrid brands

Japanese brands like Toyota, Suzuki, and Honda dominate the top ranks. In 2024, Toyota led the market with 5,350 units sold (54% share). Suzuki (25%) and Honda (19%) followed. In January 2025, Toyota sold 565 hybrid vehicles, a 500% increase compared to January 2024. Toyota entered the market early in 2020 and offers a broad lineup including the Innova Cross HEV, Corolla Cross HEV, and Camry Hybrid. Its hybrid vehicles save fuel and reduce emissions without changing users’ driving habits.

As the market grows, Kia, GAC, Volvo, and others have also begun sales, intensifying competition.

2024 Hybrid Vehicle Sales

100% = 9,866 units

Source: VAMA

Electric Motorcycles (E2W)

For motorcycles, we can confirm the number of registrations rather than annual sales figures. While sales have long been said to have plateaued at around 3 million units, registrations have grown steadily, reaching 75 million units in 2023. Among these, electric two-wheelers (E2W) increased more than fourfold from 500,000 units in 2016 to 2.3 million units in 2023. Vietnam has become the largest E2W market in the ASEAN region and the world’s second-largest market after China.[7]

Total Registered Motorcycles

Unit: million units

Source: GIZ

Competition between domestic and overseas brands is fierce. VinFast remains firmly in first place, selling 70,977 units in 2024[8]. Rival Chinese brand Yadea is accelerating efforts to close the gap, with 100,000 units on the road as of August 2023. While sales figures are undisclosed, Yadea has invested 100 million USD to build a second factory in Bac Giang, aiming to boost domestic production capacity to 2 million units annually[9].

Major E2W Brands

Source: B&Company

Factors Driving the Shift to Eco-Friendly Vehicles

Policy

The Vietnamese government is actively promoting the adoption of electric vehicles. Decision 876/QD-TTg sets the goal of phasing out gasoline vehicles by 2040, part of its commitment to achieving net-zero carbon by 2050[10]. Policies in the two major cities are crucial.

Source: Vietnamnews, Vietnamnet

Consumer Interest

In August 2024, a KPMG consumer survey found over 85% of respondents expressed concern about environmental degradation and health impacts. Factors like greenhouse gas emissions and noise pollution influence decisions to purchase electric vehicles.

Particularly among households with children and urban residents, expectations for reduced air pollution and quieter operation are high. Whether commuting and school run stress can be reduced is also a key decision factor.

Furthermore, as corporate carbon neutrality pledges and government decarbonization policies gain widespread recognition, the value of making environmentally conscious choices is becoming more prevalent. Consequently, the trend of switching from gasoline vehicles to electric vehicles when replacing personal cars is gradually expanding.

Expanding Business Opportunities

Honda (CUV brand) and Selex operate electric motorcycle rental businesses. VinFast’s Green SM is gaining market share from Grab in the ride-sharing sector. EV-related investments are expanding into areas such as vehicle sharing, charging infrastructure, battery services, and smart mobility platforms. This also provides consumers with opportunities to experience EVs, gradually fostering awareness, trust, and purchase intent. A multi-layered EV ecosystem encompassing vehicles and services is expanding.

Challenges

Charging Infrastructure and Batteries

According to a survey on EVs conducted by B&Company in 2025 across the two major cities of Hanoi and Ho Chi Minh City, insufficient charging infrastructure and battery-related concerns are the primary barriers hindering the adoption of electric vehicles in Vietnam. Key concerns cited by users considering a purchase include charging time, driving range, battery lifespan, and unstable battery technology, with consumer trust remaining low. Another survey found that approximately 62% of respondents expressed concerns about battery instability, including degradation, failure, and fire risks during charging.

Concerns when purchasing an electric vehicle

Unit: %

Source: B&Company Survey 2025

Barriers to Imported Electric Vehicles

Imported electric vehicles (both cars and motorcycles) face significant barriers. Import duties and other taxes on non-ASEAN products substantially increase retail prices, reducing competitiveness. The gap widens further as value-added tax and special consumption tax are applied on top of import duties. Domestic manufacturers like VinFast benefit greatly, aided by domestic production, government support, and the national EV development strategy.

Taxes on Imported Electric Vehicles

Source: B&Company analysis

Consumer Reliability

While 73% of consumers express interest in EVs, only half (35%) have purchase intent[11]. Many consumers lack a clear understanding of EV principles, maintenance, and long-term economics. They plan to wait several years to confirm improvements in quality, charging infrastructure, and durability before buying.

Interest in and Purchase Intent for EV

Unit: %

Source: B&Company 2025 Survey

The adoption of electric vehicles is advancing rapidly. If gasoline vehicle restrictions are implemented in major cities, a significant impact is inevitable. Concerns about the substantial effects on related industries- including manufacturing, parts, maintenance, delivery, logistics, and energy are outweighing expectations for business opportunities.

Read more

Vietnam’s Motorbike market: The road to electrification

Southeast Asia EV transition creates new opportunities for regional players

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[1]  Mordor Intelligence (2025) <Access>

[2]  Lao dong (2023) <Access>

[3]  Number & events magazine (2025) <Access>

[4]  Vinfast Website <Access>

[5]  Vnexpress (2025) <Access>

[6]  Vinfast Saigon (2025) <Access>

[7]  VIOIT (2023) <Access>

[8]  Vneconomy (2024) <Access>

[9]  The Leader (2023) <Access>

[10]  B&Company (2025) <Access>

[11]  B&Company Survey 2025