Developing a robust electric vehicle (EV) charging infrastructure could make EVs the top choice for first-time car buyers in Vietnam.

However, achieving this goal will require approximately $13.9 billion in investment by 2040, according to a recent report by the World Bank.

Transitioning to EVs is seen as a cornerstone of Vietnam’s efforts to reduce greenhouse gas emissions and meet its Net Zero target by 2050. This shift could save the nation up to $498 billion in oil imports while creating millions of new jobs.

The report, titled “Vietnam: Proposed Roadmap and National Action Plan for Transitioning to Electric Vehicles”, suggests that a well-developed charging network is crucial to support widespread EV adoption.

Initial investment requirements are estimated at $2.2 billion by 2030, increasing to $32.6 billion by 2050 as the network expands.

The roadmap outlines a phased approach to building the EV charging network: 2024–2027: Focus on high-income households and install public charging stations in premium residential areas; 2027–2030: Expand public charging infrastructure to suburban and rural areas; Post-2030: Increase station density nationwide to prepare for mass EV adoption by 2035, when most Vietnamese families are expected to afford personal vehicles; Accelerating the rollout of charging stations could significantly boost EV adoption, with an estimated additional 2.8 million EVs entering the market by 2035 and 3 million more from 2036 to 2050.

Globally, various business models have been employed to develop EV charging networks, with public-private partnerships (PPPs) emerging as a key driver of investment.

In Vietnam, companies like VinFast are pioneering this effort by building extensive charging networks and introducing franchising models for public participation.

For example, V-Green, a subsidiary of billionaire Pham Nhat Vuong’s conglomerate, has launched franchised charging stations exclusively for VinFast EVs, complementing its proprietary charging infrastructure. Other stakeholders, including power providers and petroleum distributors, are also exploring opportunities to invest in EV charging networks.

The World Bank report emphasizes the need for proactive government policies to attract private investment in EV infrastructure.

These could include: Clear regulations and ambitious EV adoption targets; Technical standards for charging infrastructure.
Financial and non-financial incentives for private investment; Pilot PPP projects to demonstrate viability and attract further investment; International experience shows that government subsidies for charging infrastructure can be 5–6 times more effective than subsidies for EV purchases.

Vietnam is already laying the groundwork for EV infrastructure development. Key policy initiatives include: Revising electricity pricing structures to support EV charging stations; Updating construction standards to require EV charging infrastructure in residential and commercial buildings by the end of 2024; Integrating EV charging stations into urban and provincial development plans;.

Deputy Prime Minister Tran Hong Ha has tasked the Ministry of Transport with refining policies to incentivize private investment in charging stations.

Meanwhile, the Ministry of Industry and Trade is working on electricity pricing mechanisms to support EV adoption, and the Ministry of Construction is revising building codes to include mandatory EV charging provisions.

Experts agree that investing in EV infrastructure will yield long-term benefits, including lower operating costs and increased convenience for EV users.

With clear policies and strategic investments, Vietnam is well-positioned to transition to green transportation and secure a sustainable future.

Tam An