With high petrol prices should not Vietnam invest more in Electric Vehicles?

[ASEAN NOW News]

Electric vehicles have high development potential in Vietnam amid the growing trend of using green and clean energy, but will the government take it seriously?

 

Dao Cong Quyet, a representative from the Vietnam Association of Automobile Manufacturers (VAMA) cited the Vietnam Register's data showing that the number of electric vehicles in Vietnam remains modest at 140 in 2019, 900 in 2020, and additional 600 units as of the first quarter of 2021.

 

According to stats online, as of June 2021, Vietnam had nearly seven hundred partners in 60 out of 63 provinces and installed 455 stations with 11,000 charging ports.

 

Super-fast charging stations with a charging capacity of up to 250kW allow to go 180km after 15 minutes of charging.

 

So, you could say the lucky 1,500 owners of electric cars today in Vietnam are laughing all the way to the bank as prices at the pumps go through the roof.

 

Vietnam smart cities

 

The electric vehicle market in Vietnam has not garnered as much attention compared to other countries in the region and globally, but this does not mean that opportunities are not there.

 

Electric vehicles are an irreversible trend and will be the future as governments move towards clean energy and consider the environment.

 

Maintenance/Repair/Tires – electric vehicles do not require as much maintenance as gas-powered ones since they do not need oil changes or air-filter replacements.

 

If maintained according to the automakers' recommendations, electric vehicles cost $330 less than a gas-powered car, a total of $949/annually.

 

Vietnam’s government is looking to use technology as it develops its major cities into smart cities.

 

Electric automobiles meet the criteria of smart city concepts as more and more people move to urban centers.

 

Vietnam’s urbanization rate is about 3 percent per year with the middle class increasingly wealthy and aware of their personal choices.

 

While rising fuel prices work in favor of the electric vehicle market, rising electricity prices do not.

 

Vietnam’s policies for the electric automobile still lag behind its peers such as Thailand, Malaysia, and Indonesia.

 

Nevertheless, change is slowly but surely happening in Vietnam.

 

Electric vehicles transporting tourists can be seen in Hanoi, Ha Long Bay, and Da Nang, while younger students are also seen driving electric motorbikes in Ho Chi Minh City. Da also opened its first public charging station in 2017.

 

Vinfast's electric buses

 

Vietnam’s first-ever domestic car manufacturer VinFast part of VinGroup is ambitious and has big plans for being a leading automobile manufacturer in Vietnam.

 

While demand is still not ripe, VinFast sold 50,000 e-motorbikes in 2019.

 

While Vietnam has no specific incentives for electric automobiles, private businesses have attempted to promote the industry.

 

Let us hope the current spat with Russia which has dramatically made governments review their energy needs may prompt Vietnam to speed up the electric revolution.

 

It makes sense and it is essential to aid global warming.