Electric vehicles are growing rapidly.

Not outside the general development trend of the world, in recent years Vietnam has been aiming for the goal of green energy conversion. In particular, the issue of production, assembly, and import of electric cars and motorbikes has been invested and focused on development.

Electric car company Vinfast has a "home field" advantage with a plan to have 150,000 charging ports covering 63 provinces and cities. Photo: Vinfast

If in 2020 domestic enterprises did not produce and assemble hybrid and electric cars, by 2022, 1,318 hybrid cars and 7,483 electric cars were put on the market. 2023 continued to witness outstanding numbers when 15,486 electric cars were produced and assembled domestically. In the first quarter of 2024 alone, 7,195 electric cars were produced domestically, bringing the total number of electric cars produced and assembled domestically from 2021 to present to 30,298.

Market research firm BMI Research forecasts that new electric car sales in Vietnam in 2024 will increase by 114.8% compared to the same period in 2023, reaching about 18,000 units. Of which, pure electric car sales will increase by 104.4%, expected to reach nearly 17,000 units. Sales of plug-in hybrid electric vehicles (PHEVs) are also expected to grow significantly, increasing ninefold compared to 2022, to nearly 1,100 units.

It can be said that the Vietnamese electric vehicle market is growing quite rapidly with dozens of large and small brands looking for opportunities. Among the car models expected to enter our country in the near future, most of them are high-chassis vehicles, equipped with many modern features that "compete" directly with the VinFast VF 6 line such as BYD Atto 3, MG4 EV... In particular, in the low-cost electric vehicle segment after Wuling Mini EV, TMT Motors will introduce 2 new models, Wuling Bingo and Baojun Yep, to compete with the VinFast VF 3 that is about to be launched.

Thus, it can be said that the market for electric cars and motorbikes in Vietnam is increasingly vibrant. However, along with rapid development is the problem of how to solve the problem of safe and standard electric charging stations to meet the needs of users.

The report "Vietnam Energy Outlook - Road to Net Zero Emissions" (EOR-NZ) recently released by the Electricity and Renewable Energy Authority (Ministry of Industry and Trade) in collaboration with the Danish Energy Agency and the Danish Embassy, ​​assessed that Vietnam can achieve its carbon neutrality target (Net Zero) by 2050.

The report finds that: There are currently around 2.4 million cars, almost all of them petrol-powered. By 2050, only electric cars are expected to be on the road, with the number of cars projected to be 10.5 million in the baseline scenario (BSL) and 9.6 million in the net zero emissions scenario (NZ). The lower number in the NZ scenario is due to the assumption of a modal shift from private cars to public transport (urban rail) in major cities.

The report recommends studying and developing national and provincial investment strategies to develop electric vehicle charging infrastructure according to international standards; Integrating electric vehicle charging infrastructure, including enhancing the capacity of the distribution grid for charging stations, into road planning and provincial, city and urban planning before 2030.

Solving the electric vehicle charging station problem

The rapid development of electric vehicles requires the problem of synchronizing charging station infrastructure. Currently, in addition to VinFast investing in its own charging station system through VGREEN (the company has planned 150,000 charging ports covering 63 provinces and cities), there has also been a third party providing charging services such as EV One Company (which has completed the deployment of more than 20 charging stations nationwide and aims to develop more than 100 charging stations by 2025).

However, currently, brands importing and distributing electric vehicles in the Vietnamese market have not specifically implemented the construction of charging station systems, but mainly rely on third parties or self-charging solutions at home (which are not convenient and do not ensure safety).

Associate Professor, Dr. Luu Duc Hai (former Director of the Department of Urban Development, Ministry of Construction) said that in big cities, the development of charging stations should be flexible in combination with units with land funds, such as apartment buildings, rest stops or large parks for optimization. "In big cities, it is very difficult to orient or plan new land areas to only charge electric vehicles," said Mr. Hai.

At present, the production and use of charging stations and charging ports is the right of the manufacturing unit, but in the future, these units need to consider the option of using a unified charging port. That also helps to better meet the charging needs of the people, without having to waste time having different charging ports and charging stations for each vehicle model.

Dr. Ha Dang Son, Director of the Center for Energy and Green Growth Research, said that the current infrastructure system cannot meet the needs of electric vehicles. If electric vehicles are developed too quickly while the supply capacity and electricity infrastructure cannot meet the demand, it will be a huge technical barrier.

"To attract people to buy electric vehicles, it is necessary to ensure the ability to fully meet the ecosystem and convenient infrastructure. In reality, the network of charging stations for routes from one city to another, from one province to another is still limited," Mr. Son added.

To achieve the goal of developing electric vehicles to dominate the market by 2045, Mr. Dao Cong Quyet, Head of the Communications Subcommittee of the Vietnam Automobile Manufacturers Association (VAMA), recommended that there needs to be cooperation and coordination between the State and businesses.

In this, the State plays a role in guiding, formulating policies and technical standards and regulations. After implementation, there should be assessments of impacts and influences to draw lessons and make adjustments.

On the business side, VAMA representative said that research and investment by automobile manufacturers need to be carried out in a balanced and harmonious manner to avoid causing market disruption. If not carried out in a balanced and appropriate manner, it can affect the decision to invest in expanding business activities.

To develop green transport, the Government Office issued Notice No. 372/TB-VPCP dated August 10, 2024, concluding the conclusion of Deputy Prime Minister Tran Hong Ha at the meeting on green transport development policy and green vehicle charging station development policy.

The Government requested to study, propose and evaluate the impact of the electricity price support mechanism on electric vehicle charging stations. Photo: Vinfast

The Deputy Prime Minister requested the Ministry of Transport to preside over and coordinate with the Ministries of Planning and Investment, Industry and Trade, Construction, Finance, Natural Resources and Environment, Science and Technology and relevant localities to review the overall Program in Decision No. 876/QD-TTg dated July 22, 2022 of the Prime Minister, and report to the Prime Minister before September 15, 2024.

Deputy Prime Minister Tran Hong Ha requested the Ministry of Industry and Trade to urgently submit to the Prime Minister for amendments and supplements to Decision No. 28/2014/QD-TTg regulating the structure of retail electricity prices; in which it is necessary to study, propose and assess the impact of the electricity price support mechanism on electric charging stations serving green vehicles.

The Ministry of Construction urgently issues and amends regulations and standards for apartment buildings and commercial centers, including regulations on electric charging systems for green vehicles, to be completed before December 31, 2024.

To ensure the operation of existing green vehicles, the Deputy Prime Minister also requested the Ministry of Construction to preside over and coordinate with the ministries, agencies: Public Security, Industry and Trade, Transport, Hanoi City People's Committee, Ho Chi Minh City People's Committee and relevant agencies to issue guidelines to supplement urban planning, construction planning, provincial planning, ensuring that there are public charging station systems in urban areas serving green vehicles for localities to implement, without affecting the operation of green vehicles of the people, to be completed in August 2024.