Transitioning to electric vehicles (EVs) in Viet Nam requires strategic policy and investment across five key areas, according to a new World Bank report. The report outlines necessary steps including boosting EV supply and production, incentivizing consumer demand, expanding charging infrastructure, preparing the power sector for increased demand from EV charging, and developing a skilled workforce.
The report titled "Viet Nam: Recommendations to the National Roadmap and Action Plan for the Electric Mobility Transition" was released today. It sets out ambitious goals for Viet Nam, such as increasing the share of urban vehicles powered by electricity or green energy to 50 percent and urban buses and taxis to 100 percent by 2030. By 2050, all road vehicles are expected to be powered by electricity or green energy. This transition could significantly reduce greenhouse gas emissions.
Mariam J. Sherman, World Bank Country Director for Viet Nam, Cambodia, and Lao PDR stated that “Decarbonizing transport with electric vehicles is a complex undertaking, and Viet Nam's commitment is a crucial first step.” She emphasized that success will depend on collaboration among government ministries, private investors, and citizens.
The transition through 2035 will focus mainly on two-wheeled vehicles which dominate private mobility in Viet Nam. Policies like facilitating consumer financing and implementing safety standards could increase the share of electric two-wheelers from 12 percent to 75 percent by 2035. After this period, passenger cars are expected to become more prevalent with electric cars potentially becoming the preferred choice if adequate charging infrastructure is established.
Public transport and commercial vehicle sectors are also critical targets for e-mobility due to their significant contribution to emissions despite being only a small percentage of registered vehicles. Electrifying buses requires strong policy measures while electrification of small commercial trucks shows promise.
Regarding power sector demands due to EV growth, it is anticipated that there won't be significant strain before 2030 but will increase thereafter. To accommodate rising demand by 2050, electricity generation may need an increase of up to 30 percent with transmission capacity growing by 15 percent if adoption targets are met fully. An estimated $9 billion investment in additional power sector resources is required by 2030 with further investments projected annually between 2031-2050.
The preparation of this report received financial support from the Australian Government through the Australia–World Bank Strategic Partnership (ABP2).