Vietnam pushes EV shift as energy security risks mount
Incentives to support electric vehicle production and adoption are required to be introduced by June
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[HO CHI MINH CITY] Vietnam is stepping up its transition to electric vehicles (EV) amid rising energy security risks, with Prime Minister Pham Minh Chinh ordering faster electrification of transport alongside sweeping energy-saving measures.
A directive dated Mar 19 called for expanded EV adoption, development of charging infrastructure and accelerated shift of public fleets towards electric power.
In the document, Chinh framed transport electrification as one of the key measures to cut reliance on imported fuels and protect the economy from volatile global energy markets stemming from ongoing armed conflicts and geopolitical tensions at major energy production and transit hubs.
Key ministries have been assigned firm deadlines to implement the shift.
Regulators are tasked with introducing technical and safety standards for EV charging systems by the third quarter of 2026, while incentives to support EV production and adoption are due by June.
Authorities are also required to finalise rules on battery recycling and related waste management by Q3.
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Urban planning is being reshaped to support the transition, with developers encouraged to integrate charging infrastructure into residential projects and parking facilities.
Provincial governments are also required to introduce policies by September to support charging station investments and promote electric buses, taxis, and other clean-energy vehicles.
The policy support is beneficial to local EV makers such as VinFast – Vietnam’s top car brand and second-ranked two-wheeler producer by sales – which has moved swiftly to capture rising demand.
Earlier this month, parent Vingroup launched a “Trade Gas for Electric” programme across Vietnam and several Asian markets, offering discounts to consumers switching from petrol vehicles to VinFast vehicles.
The group is also cutting fares for its electric ride-hailing services, offered on the Xanh SM platform in Vietnam and Green SM in Indonesia, by the end of March to stimulate adoption.
VinFast’s sales growth over the past year has reflected the broader acceleration in Vietnam’s EV uptake, particularly as major cities such as Hanoi and Ho Chi Minh City tighten restrictions on petrol-powered vehicles.
The company delivered nearly 197,000 electric cars globally in 2025, more than doubling from a year earlier, while e-scooter and e-bike deliveries surged to over 406,000 units, nearly six times higher year on year.
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