Viet Nam has surpassed Thailand in electric vehicle market penetration within Southeast Asia, with EVs accounting for approximately 26.3% of all car sales compared to Thailand's 23.2%, and even achieving a remarkable 42% EV share of new car sales in the first half of 2025 according to the European Federation for Transport and Environment—the highest ratio worldwide.
Domestic automaker VinFast has been the driving force behind this transformation, commanding nearly 30% of Vietnam's total automobile market by mid-2025 with its market share surging from just 9.2% in 2023 to 21.3% by end of 2024, propelled by aggressive sales strategies at home including free charging policies, competitive pricing with models like the VF3 mini-EV priced at $9,200, and government incentives such as registration fee waivers.
The Vietnamese EV market is projected to reach $3.12 billion in 2025 and grow to $7.4 billion by 2030 at a compound annual growth rate of 18.88%, supported by ambitious government targets mandating 50% EV penetration in urban areas by 2030 and net-zero emissions by 2050, alongside infrastructure expansion with VinFast operating 150,000 charging ports nationwide.
VinFast is betting on speed and scale to compete with Chinese manufacturers by establishing new production facilities across the region including Indonesia and India, while Chinese brands like BYD, Wuling, Geely, and MG are intensifying competition through local production commitments and aggressive pricing strategies, with BYD's $1 billion Indonesian hub expected to produce 150,000 vehicles annually starting late 2025.
Industry analysts attribute Viet Nam's rapid electrification to coordinated economic and policy actions that have positioned it as a credible alternative to traditional regional manufacturing hubs like Thailand, Indonesia, and Malaysia, with the EV segment expanding by an unprecedented 187.6% in the first half of 2025 while simultaneously cannibalizing internal combustion engine vehicle sales share.
