Summary
– VinFast, owned by Vingroup, is developing its own electric vehicles for international export and has a high profile on NASDAQ.
– Vietnam aims to reach net-zero emissions by 2050 by promoting electric vehicles and cutting down on fossil fuel use in the transport sector.
– Decision 876 sets out national objectives to promote the development of electric vehicles and e-charging infrastructure from 2022 to 2030 and phase out fossil-fuelled vehicles by 2050.
– The Vietnamese government offers incentives for the production and importation of electric vehicles, with lower excise tax rates for EVs compared to fossil-fuelled cars.
– E-charging infrastructure in Vietnam is limited, with VinFast leading the development of charging ports, exclusively for its EV users, with plans to consider sharing facilities with other brands in the future.
Article
Vietnam’s largest private corporate company, Vingroup, is the owner of VinFast, a company that has committed to developing its own electric vehicles for international export. The recent listing of VinFast on NASDAQ has increased the visibility of electric vehicles in Vietnam, with a focus on promoting sustainable transportation options. In order to achieve its goal of reaching net-zero emissions by 2050, Vietnam will need to reduce its reliance on fossil fuels in the transport sector, making electric vehicles a key strategy for reducing greenhouse gas emissions. Decision 876, issued by the Prime Minister, lays out specific national objectives for promoting the development of electric vehicles, including phasing out fossil-fuelled road vehicles for domestic consumption by 2040 and transitioning to electric-powered vehicles by 2050.
The electric vehicle market in Vietnam is currently dominated by electric two-wheeler vehicles and passenger vehicles, presenting significant opportunities for growth and development. The government has introduced incentives for the production and importation of electric vehicles, such as a favorable excise tax rate for electric cars that is substantially lower than for fossil-fuelled cars. Despite these incentives, the e-charging infrastructure in Vietnam is still limited, with no specific targets or incentives established by the government. VinFast has emerged as a leader in e-charging infrastructure development in Vietnam, with over 150,000 charging ports nationwide, strategically placed in various locations such as car parks, commercial centers, and highway rest stops. However, VinFast has indicated that it will only consider sharing these facilities with other brands in the future.
The legal framework for the construction and operation of EV charging points in Vietnam is currently underdeveloped, with no specific legislation or guidance on how to invest in the sector. Projects in this sector will need to comply with existing investment, construction, fire safety, and electricity supply regulations, with the procedures for development varying based on the interpretation of existing legislation by relevant authorities. Investors looking to build e-charging facilities will need to seek approval from the relevant authorities, who will assess the compatibility of the project with national, regional, and provincial master plans, including land use and construction master plans. The assessment of compatibility with these plans may differ depending on the authority conducting the appraisal.
In conclusion, the promotion of electric vehicles in Vietnam is a crucial component of the country’s efforts to reduce emissions and transition to more sustainable transportation options. The government’s support for the production and importation of electric vehicles, along with VinFast’s leading role in developing e-charging infrastructure, are positive steps towards achieving Vietnam’s net-zero emissions goals by 2050. However, the underdeveloped legal framework for EV charging points poses challenges for investors looking to enter this sector, highlighting the need for clear regulations and guidance to support the growth of e-mobility in Vietnam.
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