Electric vehicles (EV) are an irreversible trend in the auto industry and are expected to grow strongly. To take advantage of this, the Vietnam Automobile Manufacturing Association (Vama) has outlined plans to develop the local electric car industry.
The plans to conduct a roadmap for the development of electric cars in Vietnam were discussed during a recent webinar co-organised by Giao thong (Transport) newspaper in collaboration with Vama and the Vietnam Motorcycle Manufacturers Association (VAMM).
Vietnam’s policies for electric automobiles lag behind peers such as Thailand, Malaysia and Indonesia. Nevertheless, change is slowly but surely happening in the country.
Vama representative Dao Cong Quyt said Vietnam’s infrastructure for the development of EVs may not be ready soon. There is also a lack of charging stations. Currently, almost no charging stations are available for electric cars in the country. Power production and supply are also an issue for the development of EVs.
Most families in Vietnam are not able to afford to install home charging stations, while they are quite common in other countries.
Moreover, the shift from producing traditional cars with internal combustion engines (ICE) to EVs will lead to halts in the production of the obsolete car segment. Therefore, a certain transition is required while electric cars and low-emission vehicles should be developed during the transition.
To develop Vietnam’s electric automobile industry, Vama has planned three development stages.
From 2021-2030, Vietnam’s automobile industry will set a target of manufacturing approximately one million cars of all types and internal combustion engines (ICE) vehicles will remain dominant. However, the number of EVs will also gradually increase.
From 2030-2040, the development of EVs will see strong growth with a production capacity of 3.5 million units during the period.
From 2040-2050, the local automobile industry will see stable development and it then will become saturated with a production capacity of between four and 4.5 million vehicles.
To make the goals a reality, Vama has proposed the government to stimulate consumer demand by offering preferential special consumption tax for the development of EVs. It has called on the government to cut 50 per cent of registration fees for hybrid EVs (HEV), 70 per cent for plug-in hybrid EVs (PHEVs) and 100 per cent for battery-powered EVs (BEV).
In addition, financial support for parking fees and environmental taxes are also needed, and the installation of charging station infrastructure must meet required standards.
Phan Thi Thuy Duong, director of VinFast’s Battery Development Centre, said Vietnam is enjoying a golden chance to develop the EV industry. She added the country has great potential to develop clean power sources such as wind and solar power that are an important platform for electrification.
She noted that to go for the golden chance, Vietnam needs to quickly complete its legal framework, and the installation of public charging infrastructure must be built together with the development of transport and electricity grid networks in a synchronous manner.
The finance and transport ministries have also proposed the government to soon conduct regulations on investment in new public vehicles that must be electric.
VIET NAM NEWS/ASIA NEWS NETWORK