In recent years, the Vietnamese automobile industry has achieved significant growth and development. Despite a later start than neighboring countries such as Thailand, Indonesia and Malaysia, Vietnam has affirmed its position as a formidable competitor in the automobile market.

The increase in production capacity is one of the key factors contributing to Vietnam's growth potential in the electric vehicle market, reflected in the production volume of gasoline and electric vehicle models domestically as well as for export.

According to the report “Moving with electric vehicles: A new step for businesses to participate in a market with great potential and sustainable development” recently published by KPMG Vietnam in collaboration with EuroCham and Cho Tot Xe, the rise of electric vehicles has opened a new chapter, bringing opportunities for Vietnam to make the most of its available advantages.

Besides, trade agreements between Vietnam and other countries also play an important role in promoting the growth of Vietnam's electric vehicle industry.

As a country participating in the largest network of FTAs ​​in ASEAN, Vietnam can access advanced knowledge and technology, expand cooperation opportunities with other electric vehicle markets to increasingly improve its capacity.

The report also notes that creating a favorable policy environment, including tax incentives, is also important for Vietnam. This will encourage individuals and businesses to increasingly invest in electric vehicle technology and infrastructure, thereby promoting the strong development of the Vietnamese electric vehicle market.

Mr. Nguyen Tuan Hong Phuc, Deputy General Director, Head of Customer Strategy and Operations Consulting, KPMG Vietnam, shared: "The Vietnamese electric vehicle industry is witnessing a strong convergence of factors such as preferential policies from the Government, increasing consumer demand and rapid technological innovation, creating a solid foundation for breakthrough projects that shape the future of the automotive industry."

Thanks to that, the electric vehicle market in Vietnam is assessed to be on the path of strong growth. According to the report, the huge potential of the electric vehicle industry in Vietnam is driven by the convergence of factors including:

Strong support policies: Preferential policies from the Government to promote the green economy, creating favorable conditions for the use of electric vehicles.

Rapidly increasing consumer demand: Nearly 70% of survey respondents expressed interest in purchasing electric vehicles, indicating a significant change in consumer trends.

Expanding the two-wheel and four-wheel vehicle segments: Both supply and demand in the Vietnamese electric vehicle market are growing strongly in both the two-wheel and four-wheel segments, with the entry of many large domestic and foreign enterprises such as VinFast, Hyundai, Toyota, Kia and BYD.

The report delves into consumer behavior, the key factors that shape electric vehicle purchase decisions.

Specifically, Gen Z (the generation born in the late 1990s to early 2010s) and Millennials (generations 8X and 9X) are more likely to consider using electric vehicles, demonstrating a growing interest in sustainable and high-tech transportation.

In addition to basic features such as durability, performance and comfort, consumers aged 35-44 are particularly concerned about the resale value of a vehicle, even prioritizing it over after-sales service.

Widespread deployment of charging stations is also key to addressing consumer concerns and encouraging the use of electric vehicles, the report also said.

The report also points out that customer experience must be a top priority and must be taken into account from the product discovery and purchase stages to the usage and warranty process. Businesses need to invest heavily in customer behavior analysis, effective communication, professional consulting teams, fast support services and timely provision of replacement parts.