Hanoi (VNA) – Promoting production and use of electric vehicles (EVs) is not only an inevitable energy transition trend but also a strategic opportunity for Vietnam to master core technologies and deepen its participation in global supply chains.
Experts said increasing localisation rates will be the key for domestic enterprises to secure technological self-reliance and strengthen the country’s long-term green growth ambitions.
Against the backdrop of global volatility in fossil fuel supplies and prices, the shift towards electric and clean-energy vehicles has become increasingly urgent to ensure energy security and sustainable development in Vietnam.
Pham Van Quan, Deputy Director of the Industry Agency under the Ministry of Industry and Trade and an EV user since 2022, said electric vehicles represent not merely a means of transport but an entirely new industrial ecosystem.
Sharing his personal experience with a VinFast EV, Quan said his family initially worried about battery safety and fire risks. However, the vehicle’s durability and operational efficiency gradually dispelled those concerns.
“This transition is inevitable, much like the shift from basic mobile phones to smartphones,” he said.
While some observers argue that Vietnam’s EV industry still relies heavily on imported components, Quan said such assessments no longer fully reflect reality.
By the end of 2025, Vietnam had established 28 standards and technical regulations related to charging stations, charging equipment and batteries. The legal framework is expected to be fully completed in the third quarter of 2026.
Meanwhile, the localisation rate of VinFast vehicles reached around 60% by late 2025. Once the battery manufacturing plant in the central province of Ha Tinh becomes fully operational, the rate is projected to rise to 80%.
Vietnam has also gradually mastered several core EV technologies, particularly electric motors and batteries, which account for the highest proportion of an EV’s value. New investment projects are targeting localisation rates of 80-90% for battery storage technologies in the coming years.
Compared to traditional foreign-invested automobile manufacturers, whose localisation rates remain at only 10-15% after decades of operation in Vietnam, the rapid progress of domestic EV producers demonstrates the country’s growing manufacturing capability and determination to master advanced technologies.
Hoang Ha, CEO of VinFast Electric Motorcycles Vietnam, said the company aims to build a sustainable green mobility ecosystem. With a network of 150,000 charging ports and Vietnam’s largest distribution system, VinFast is making EV ownership more accessible and convenient for consumers, he said.
To support the EV industry, the Ministry of Industry and Trade has introduced a range of policies to promote supporting industries, including Decree No. 205/2025/ND-CP amending regulations on industrial support development.
Current incentives are considered among the strongest ever offered, covering taxes, land use and rental fees. Enterprises can enjoy tax exemptions for the first four years and tax reductions over the following nine years.
Notably, foreign-invested enterprises seeking incentives are required to include at least one Vietnamese company in their supply chains, while eligible products must contain high scientific and technological content rather than simple assembly operations.
According to Dr. Vo Tri Thanh, Director of the Institute for Brand and Competitiveness Strategy Research, the development of the EV industry should not only focus on expanding output but also on mastering key technologies such as precision engineering, software and circular economy solutions.
Thanh stressed that Vietnam needs a balanced approach covering both supply and demand. On the supply side, businesses should receive support to improve competitiveness and join global supply chains through programmes such as “Go Global.” On the demand side, the domestic market must grow sufficiently large to sustain a strong supporting-industry ecosystem.
With plans to complete the legal framework for charging infrastructure by the third quarter of 2026, Vietnam is laying an important foundation for a comprehensive EV ecosystem, paving the way for greener growth and the country’s net-zero emissions target by 2050./.
