Photo courtesy of VnExpress/Thanh Nhan

Vietnam recorded the highest battery electric vehicle sales among Southeast Asia's four largest car markets during the first half of 2026, with 115,986 vehicles sold. The total was 71% higher than a year earlier and placed the country ahead of Thailand, Indonesia and Malaysia.

Battery electric vehicles, or BEVs, accounted for 35.3% of all new vehicles sold in Vietnam during the period. That was also the highest market share among the four countries, according to figures reported by VnExpress.

VinFast dominates Vietnam sales

VinFast, already Vietnam's top-selling car brand across all vehicle categories, supplied almost all of the BEVs counted. Ford's Mustang represented a small number of sales, while some other manufacturers did not disclose their electric vehicle figures.

Vietnam continues to support fully electric cars with a registration fee exemption and a preferential special consumption tax rate of 3% until the end of 2030. BEVs run only on electricity, unlike hybrids that combine an electric motor with a petrol engine.

Regional markets continue rapid growth

Thailand followed closely with 104,418 BEVs sold. Its market grew by 91%, the fastest increase among the four countries, with Chinese manufacturers BYD, Aion and MG collectively holding the largest share. Thailand also offers subsidies and excise tax incentives and is considering a US$714 million programme to replace 80,000 ageing vehicles.

Indonesia remained Southeast Asia's largest overall car market, although BEVs accounted for 16% of its new vehicle sales. Chinese brands filled all 10 places on the country's list of best-selling BEV models, according to local automotive platform DetikOto. VinFast sold 1,934 vehicles there, including 1,355 VF 3 mini SUVs.

Malaysia recorded the lowest BEV total among the four markets, although its sales rose by 85%, the region's second-fastest growth rate after Thailand.

What it means for foreigners in Vietnam

For foreign residents and businesses, the rapid shift should make electric vehicles increasingly visible in daily transport and broaden demand for charging, maintenance and related services. Buyers should still compare real-world range, charging access, warranty terms and resale prospects before choosing a model. Vietnam's current tax advantages run until the end of 2030, but future costs and incentives may change as the market develops.

30 July 2026

But Vietnam roads have not been built for cars, it was built for bicycles but nowadays motorcycles dominate.

Unfortunately car drivers are not competent and 3 point turns are 7 or 9 at a minimum and I've counted 15 on occasions. They block traffic for a few minutes which has a huge knock-on effect as there are thousands of motorcycles trying to go around and up pavements as they are all impatient.

Having said that I was thinking of getting the mini VF3 for the rainy season which is long October-January in central Vietnam.