Vietnam Among Top 10 Globally for EV Adoption

Vietnam is set to rank among the top 10 global markets for electrified vehicles (including plug-in hybrids - PHEVs and battery electric vehicles - BEVs) by 2025, according to a recent projection by the International Energy Agency (IEA). This forecast highlights Vietnam's rapid expansion in the electric vehicle (EV) market. The IEA report indicates that electrified vehicles are expected to account for approximately 29% of total new car sales in Vietnam by 2025. This signifies a dramatic surge from a near-zero market share in 2020, demonstrating remarkable growth within just five years. The primary driver of this expansion is the domestic automaker VinFast. The company anticipates selling over 175,000 electric vehicles in 2025, within a total market of over 604,000 new cars, making up nearly 29% of the overall market. Vietnam's projected market share for electrified vehicles surpasses the IEA's global average forecast of 25% for 2025. Furthermore, this figure is significantly higher than that of major markets like Australia (15%), South Korea (11%), and the United States (10%). Notably, Vietnam is poised to lead the ASEAN region in electrified vehicle adoption, with Thailand following closely at approximately 25%, ranking 11th globally. The BEV segment in Vietnam, which began around 2020 with luxury models like the Porsche Taycan, has since expanded rapidly, attracting numerous new brands. VinFast plays a dominant role in the market. While many other brands also sell BEVs, their sales figures are not widely disclosed. As of July 2026, cumulative BEV sales have reached approximately 137,773 units, a 74% increase year-on-year, representing about 35.5% of total new car sales. In the past couple of years, BEVs have been the main growth engine for the domestic automotive industry. Unlike many Southeast Asian countries where Chinese EVs hold significant influence, Vietnam's BEV market is dominated by its domestic brand, VinFast. The IEA further predicts that Vietnam's electrified vehicle market share could reach as high as 80% by 2035, the highest in the ASEAN region. Factors propelling this growth include the increasing affordability of EVs and government incentives such as exemptions or reductions in special consumption tax and registration fees.