Reports by the Vietnam Automobile Manufacturer Association (VAMA) and Hyundai Thanh Cong said that 68,279 automobiles of different types were sold in the first quarter of 2024. The figure included electric vehicles, but the sales were not released separately. Meanwhile, 2,385 hybrids were sold.

Analysts estimated that the number of EVs sold accounted for 10 percent of total cars sold in the first quarter, while the number of hybrids accounted for a smaller proportion, despite the increase compared with 2023.

Dam Hoang Phuc from the Hanoi University of Science and Technology, said there have been big changes with EV technologies, especially battery manufacturing. EVs don’t need gear boxes, and are more durable than internal combustion engines.

He said that it is more profitable and convenient to use EVs for transport services. EV owners don’t have to spend too much on maintenance or have oil changed.

Switching to EVs for taxi services will not only bring benefits to taxi and transport firms, but also allow Vietnam to fulfill commitments on reducing CO2 emissions.

Policies for EV development need to ensure harmonization for the issue. The government needs to design policies which can encourage businesses to shift to green vehicles.

He emphasized the policy on capital costs. How can small enterprises access green capital to shift to green vehicles?

Phuc mentioned the importance of charging stations. The government needs to encourage enterprises to develop charging stations and share stations among partners.

There should be research that proves the benefit of the switch to EVs, which could serve as the foundation for experts and agencies to persuade the government to set up policies to help businesses shift to green vehicles.

Vietnam Automobile Transport Association’s Secretary General Phan Thanh Uy said many legal documents need to be issued as many questions will arise when EVs become popular. For example, transport firms will be granted greenhouse gas emission quotas and it is necessary to choose which agency will grant the quotas, and inspect and grant carbon credits. In addition, a carbon credit market will take shape.

N. Huyen