Electric vehicles (EVs) are an irreversible trend in the automotive industry and are expected to experience strong growth. To take advantage of this, the Vietnam Association of Automobile Manufacturers (Vama) presented plans to develop the local electric car industry.
The plans to realize a roadmap for the development of electric cars in Vietnam were discussed during a recent webinar co-organized by the newspaper Giao thong (Transport) in collaboration with Vama and the Vietnamese Association of Manufacturers of motorcycles (VAMM).
Vietnam’s electric car policies are lagging behind their counterparts such as Thailand, Malaysia and Indonesia. Nonetheless, change is happening slowly but surely in the country.
Vama representative Dao Cong Quyt said Vietnam’s infrastructure for the development of electric vehicles might not be ready anytime soon. There is also a lack of charging stations. Currently, almost no charging stations are available for electric cars in the country. The production and supply of electricity are also an issue for the development of EVs.
Most Vietnamese families cannot afford to install home charging stations, while they are quite common in other countries.
In addition, the shift from the production of traditional internal combustion engine (ICE) cars to electric vehicles will result in the production of the obsolete car segment being stopped. Therefore, some transition is needed as electric cars and low emission vehicles are expected to be developed during the transition.
To develop Vietnam’s electric automobile industry, Vama has planned three stages of development.
From 2021 to 2030, the Vietnamese auto industry will aim to manufacture around one million cars of all types and internal combustion engine (ICE) vehicles will remain dominant. However, the number of electric vehicles will also gradually increase.
From 2030-2040, the development of EVs will experience strong growth with a production capacity of 3.5 million units over the period.
From 2040-2050, the local automotive industry will experience stable development and will then become saturated with a production capacity of between four and 4.5 million vehicles.
To achieve these goals, Vama proposed to the government to stimulate consumer demand by proposing a special preferential consumption tax for the development of electric vehicles. He called on the government to reduce registration fees for hybrid electric vehicles (HEVs) by 50%, plug-in hybrid electric vehicles (PHEVs) by 70% and battery-powered electric vehicles (BEVs) by 100%.
In addition, financial support for parking fees and environmental taxes are also necessary, and the installation of charging station infrastructure must meet the required standards.
Phan Thi Thuy Duong, director of the Battery Development Center at VinFast, said Vietnam is enjoying a golden opportunity to develop the electric vehicle industry. She added that the country has great potential to develop clean energy sources such as wind and solar power which are an important platform for electrification.
She noted that to try this golden chance, Vietnam must quickly complete its legal framework and that the installation of public charging infrastructure must be built with the development of transport networks and electricity grid synchronously.
The ministries of finance and transport have also proposed to the government to conduct regulations on investments in new public vehicles which must be electric in the near future.
VIET NAM / ASIA NEWS NETWORK