Electric vehicles are increasing rapidly.
Following the global trend, Vietnam has been aiming for a green energy transition in recent years. In particular, the production, assembly, and import of electric cars and motorcycles have received significant investment and development attention.
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| Vinfast, the electric vehicle manufacturer, has the advantage of being on home turf with a planned network of 150,000 charging ports covering all 63 provinces and cities. (Photo: Vinfast) |
While domestic businesses did not produce or assemble hybrid or electric cars in 2020, by 2022, 1,318 hybrids and 7,483 electric cars had been launched onto the market. 2023 saw a further surge, with 15,486 electric cars produced and assembled domestically. In the first quarter of 2024 alone, 7,195 electric cars were produced domestically, bringing the total number of domestically produced and assembled electric vehicles since 2021 to 30,298.
Market research firm BMI Research forecasts that new electric vehicle sales in Vietnam in 2024 will increase by 114.8% compared to the same period in 2023, reaching approximately 18,000 units. Of these, sales of pure electric vehicles are expected to increase by 104.4%, reaching nearly 17,000 units. Sales of plug-in hybrid electric vehicles (PHEVs) are also predicted to experience significant growth, increasing ninefold compared to 2022, reaching 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 seeking opportunities. Among the models predicted to enter the country in the near future, most are high-riding vehicles equipped with many modern features, directly competing with the VinFast VF 6, such as the BYD Atto 3 and MG4 EV. In particular, in the affordable electric vehicle segment, following the Wuling Mini EV, TMT Motors will introduce two new models, the Wuling Bingo and Baojun Yep, to compete with the upcoming VinFast VF 3.
Thus, it can be concluded that the electric car and motorcycle market in Vietnam is becoming increasingly vibrant. However, along with this rapid development comes the challenge of establishing safe and standardized charging stations that meet user needs.
The report "Vietnam Energy Outlook – The Road to Net Zero Emissions" (EOR-NZ), published by the Electricity and Renewable Energy Department ( Ministry of Industry and Trade ) in collaboration with the Danish Energy Agency and the Danish Embassy, assesses that Vietnam could achieve net zero carbon neutrality by 2050.
The report shows that there are currently around 2.4 million cars, almost all of them gasoline-powered. By 2050, only electric vehicles will be on the road, with the projected number of cars at 10.5 million in the baseline scenario (BSL) and 9.6 million in the net-zero emissions (NZ) scenario. The lower number in the NZ scenario is due to the assumption of a shift from private cars to public transport (metrorail) 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 strengthening the capacity of the power 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 necessitates a synchronized charging station infrastructure. Currently, in addition to VinFast's own investment in a charging station system through VGREEN (the company has planned 150,000 charging ports covering all 63 provinces and cities), third-party charging service providers have also emerged, such as EV One (which has completed the deployment of over 20 charging stations nationwide and aims to develop more than 100 charging stations by 2025).
However, currently, electric vehicle import and distribution brands in the Vietnamese market have not yet implemented the construction of charging station systems, mainly relying on third parties or self-charging solutions at home (which are inconvenient and do not guarantee safety).
Associate Professor Dr. Luu Duc Hai (former Director of the Urban Development Department, Ministry of Construction) believes that in large cities, the development of charging stations should be flexible, combining with units that have land available, such as apartment complexes, rest stops, or large parks to optimize efficiency. "In large cities, it is very difficult to plan or allocate new land solely for electric vehicle charging," said Dr. Hai.
Currently, the production and use of charging stations and ports are at the discretion of the manufacturers, but in the future, these manufacturers need to consider a standardized charging port system. This would better meet the charging needs of the public, eliminating the need for different charging ports and stations for each vehicle model.
Dr. Ha Dang Son, Director of the Center for Energy and Green Growth Research, believes that the current infrastructure cannot meet the needs of electric vehicles. Developing electric transportation too quickly while the supply capacity and electricity infrastructure are insufficient will create significant technical obstacles.
"To attract people to buy electric vehicles, it is necessary to ensure a complete ecosystem and convenient infrastructure. In reality, however, the network of charging stations for routes from one city to another, or from one province to another, is still limited," Mr. Son added.
To achieve the goal of electric vehicles dominating the market by 2045, Mr. Dao Cong Quyet, Head of the Communication Subcommittee of the Vietnam Automobile Manufacturers Association (VAMA), suggested that the State and businesses need to work together and cooperate.
In this process, the State plays a guiding role, formulating policies and technical standards and regulations. After implementation, assessments of impacts and effects are needed to learn from experience and make adjustments.
From the business perspective, VAMA representatives believe that research and investment by automobile manufacturers need to be balanced and harmoniously developed to avoid disrupting the market. If not done in a balanced and appropriate manner, it could affect decisions to invest in expanding business operations.
To develop green transportation, the Government Office issued Notice No. 372/TB-VPCP dated August 10, 2024, summarizing the conclusions of Deputy Prime Minister Tran Hong Ha at a meeting on policies for developing green transportation and electric vehicle charging stations.
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| The government has requested research, proposals, and an assessment of the impact of electricity price support mechanisms on charging stations for electric vehicles. (Photo: Vinfast) |
The Deputy Prime Minister requested the Ministry of Transport to take the lead 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 conduct a comprehensive review of the Program as stipulated 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 amendments and additions to Decision No. 28/2014/QD-TTg regulating the structure of retail electricity tariffs; in which, research, proposals, and assessments of the impact of electricity price support mechanisms on charging stations serving green transportation vehicles are needed.
The Ministry of Construction is urgently issuing and amending regulations and standards for apartment buildings and commercial centers, including regulations on charging systems for green transportation vehicles, to be completed before December 31, 2024.
To ensure the operation of existing green transportation vehicles, the Deputy Prime Minister also requested the Ministry of Construction to take the lead and coordinate with the Ministries and agencies: Public Security, Industry and Trade, Transport, the People's Committees of Hanoi and Ho Chi Minh City, and other relevant agencies to issue guidelines to supplement urban planning, construction planning, and provincial planning, ensuring the presence of public electric vehicle charging stations in urban areas to serve green transportation vehicles. This will allow localities to implement the plan without affecting the operation of green transportation vehicles used by the public, and should be completed by August 2024.
Source: https://congthuong.vn/cu-nhay-vot-cua-xe-dien-trong-nuoc-giai-bai-toan-tram-sac-the-nao-338824.html
