China’s BYD has said it intends to launch three electric car models in Vietnam this year starting from July 18. The firm has also said it intends to build a factory in Vietnam, however, no specifics have been provided.

This is in the context of new antidumping tariffs on electric vehicles from China in the US and EU. This may be driving Chinese EV producers to search out alternative markets for their vehicles. With a reasonably big population and rapidly rising incomes, not to mention being just a stone’s throw away, Vietnam is a prime choice.

Furthermore, local electric car maker VinFast has been all over the news in recent years and has spent a good deal of resources promoting electric vehicle adoption. This has seen electric vehicle awareness in Vietnam rise steadily.

It has also spent a good deal of resources developing electric vehicle charging stations around the country. The CEO of VinFast, Pham Nhat Vuong, said last year that the company did not intend to share its charging stations for at least the next ten years which may give the firm an edge. However, in the US whereas Teslas use their own unique charger, this has been overcome with a simple adapter.

With a penetration rate of just 5 percent, Vietnam’s car market has plenty of room to grow. The country has also made a commitment to be net-zero by 2050 which may also fuel demand for electric vehicles over traditional internal combustion engines. 

See also: Vietnam’s Automotive Industry 2024: Foreign Investor Cheat Sheet