The significant increase in green cars on the streets is a testament to the strong trust of Vietnamese consumers in electric cars. At the same time, supportive policies from the Government and continuous improvements in vehicle technology from manufacturers promise to make the dream of electrifying transportation in Vietnam a reality and no longer a luxury.
Nearly half of Vietnamese residents are confident about buying an electric car within the next 12 months.
Data from a survey on the Vietnam Automobile Forum shows that the majority of people under 40 years old show openness to electric cars in all aspects. The survey focused on 1,147 people in the age group who are likely to buy cars, and the results showed that 99.4% consumers over 25 years old have known the concept of electric cars. Of these, 82% have shown interest and have learned about electric cars, while the proportion of people who are very interested and have researched deeply about electric cars reached 31%.
Notably, the survey results of subjects who have been and are having a deep understanding of electric cars show that 46,08% people are sure to choose to buy an electric car in the next 12 months.
Survey results of a Vietnamese car forum show that more than 46% people trust and are willing to use electric cars.
These figures are a clear testament to the progressive thinking and sustainable development of the Vietnamese community. This becomes especially important, especially when the trend of using electric vehicles is becoming an inevitable space on a global scale.
The growing number of electric vehicle users shows progressive thinking for a sustainable future
These achievements are the result of active efforts from the Government and businesses, making electric cars more accessible to the people. In order to promote the application of electric cars, the Government has issued a Decree regulating registration fees, exempting registration fees for battery-powered electric cars for 3 years from March 1, 2022, then applying a fee of 50% compared to gasoline and diesel cars with the same number of seats.
In addition, the National Assembly also approved a reduction in special consumption tax (SCT) on electric cars, to encourage investment in production and promote the development of electric cars, while reducing emissions from traffic.
In addition to the support policies from the Government, some domestic enterprises have also pioneered the electric vehicle trend in Vietnam. VinFast is an example, having produced and developed 3 smart electric car models, including VinFast VF e34, VinFast VF 8 and VinFast VF 9. With modern design, excellent performance and advantages in travel range, VinFast cars provide long-term warranty services and many attractive incentives such as giving VinPearl resort vouchers, free parking at Vincom, creating favorable conditions for the increasing appearance of electric vehicles on the streets.
Electric cars impress users with their trendy design and powerful performance.
In addition, the transition to electric power is perceived as an inevitable trend globally. VinFast opens the era of electric vehicles that can bring Vietnam into the ranks of advanced countries in the world.
Electric Vehicles Are Increasingly Contributing to Greening Vietnam's Traffic
With the strong support of the Vietnamese consumer community for the electric car trend, VinFast has become a leading name that consumers immediately think of when mentioning electric cars. This success is clearly demonstrated by the fact that the VinFast VF e34 electric car model quickly took a position in the top 10 best-selling cars in Vietnam, surpassing many famous brands. At the same time, VinFast achieved impressive sales of more than 2,100 units in just the first 6 months of 2022. This number is expected to continue to increase, especially if VinFast has enough supply to meet the 25,000 orders from the previous launch.
In addition to the VinFast VF e34 model, VinFast is proactively accelerating production for two other smart car models, the VinFast VF 8 and VinFast VF 9. The first delivery of 100 VinFast VF 8 cars was carried out in September 2022, for customers who placed the earliest deposits. The second VF 8 delivery is expected to take place in November 2022, serving customers with deposit numbers from 101 to 1000. For the VinFast VF 9 model, VinFast is accelerating the production process to deliver to customers in the shortest time possible.
These figures show that Vietnamese people are gradually shifting from using gasoline cars to electric cars. In the future, if the transportation infrastructure and charging station system are developed and improved, the number of electric cars will increase significantly.
With these positive signals, experts predict that the electric car market in Vietnam will grow strongly and explode by 2045, when the country enters the golden stage of economic development.
Furthermore, the Vietnamese Government has announced plans and commitments to become greenhouse gas neutral by 2050. This will make an important contribution to reducing pressure from internal combustion engine vehicles and increasing the use of green vehicles to protect the environment.
Factors determining the choice of electric vehicles by Vietnamese people
Electric cars, as a new medium, require manufacturers to have a solid understanding of customer expectations. This allows them to make the necessary adjustments in product development and sales policies. Only through this can electric cars facilitate their integration into the lives of every family.
Advanced and modern technology on electric vehicles
Electric vehicles have become an important trend in the era of “green consumption” thanks to their positive effects on the environment and human life. New generation smart electric vehicle models have broken the previous barriers of traditional electric vehicles, bringing many benefits to users.
Electric vehicles use battery power to operate, without creating a fuel combustion process, thereby reducing emissions into the environment and the risk of fire and explosion. In addition, smart and safe features are integrated into electric vehicle models to minimize traffic collisions and ensure safety for users.
For example, VinFast electric vehicle models are not only equipped with smart features such as navigation systems, data storage, charging status search, entertainment, but also integrate VinFast Virtual Assistant with AI artificial intelligence, capable of understanding and two-way communication with users in many different languages.
In particular, the two VinFast VF 8 and VF 9 models are also equipped with ADAS driving assistance feature - one of the most modern smart features, helping drivers drive more comfortably and safely on all types of roads.
Cost savings over gasoline cars
One of the important reasons why Vietnamese consumers are gradually switching to electric vehicles is the scarcity and increase in gasoline prices, making it difficult to travel. In the first 6 months of 2022, domestic gasoline prices have continuously increased, with gasoline prices reaching a "skyrocketing" level of over 30,000 VND/liter. Maintaining daily travel has become expensive for gasoline vehicle users.
In particular, from October and November 2022, gasoline shortages occurred in some major cities such as Hanoi and Ho Chi Minh City, causing many gas stations to close and stop selling. People had to queue up to buy gasoline, and in some cases had to fill up at night to avoid the crowd.
In this context, using electric cars becomes the optimal cost option for Vietnamese users, thanks to battery rental services and lower electricity prices compared to gasoline prices.
In Vietnam, when using VinFast electric vehicles, users can choose battery rental packages to optimize prices and operating costs according to their individual needs. For example, the flexible monthly battery rental price for the VF e34 model is 657,500 VND/month, or a fixed battery rental price of 1,805,000 VND/month. The cost incurred after each km traveled is 1,315 VND/km.
For VinFast VF 8 and VinFast VF 9 models, the battery rental prices are VND 4,950,000/month and VND 6,490,000/month respectively for both Eco and Plus versions.
To see the savings of electric cars, users can do a small calculation on the monthly usage cost between electric cars and gasoline cars. For example, the operating cost of a VinFast VF e34 C-class electric car with a power consumption of 13.4 kWh/100km, if calculated according to the 5th electricity price of 3,076 VND/kWh (including VAT), the cost of charging the car for a distance of 500km is:
13.4 x 3.076 x 5 = 206,092 VND
If using the battery rental package worth 657,500 VND/500km, the total cost of using the VF e34 electric car will be:
657,500 + 206,092 = 863,592 VND
On the contrary, when using a gasoline car, users can calculate according to the following formula. The average fuel consumption of a C-class gasoline car is 7.8 liters/100km. Based on current gasoline prices, the cost of traveling 500km is as follows:
- RON 95-III gasoline: 23,867 x 7.8 x 5 = 930,813 VND
- E5 RON 92-II gasoline: 22,711 x 7.8 x 5 = 885,729 VND
In general, the cost of using an electric car is more economical than a gasoline car. Users will optimize vehicle maintenance costs and battery depreciation costs, because VinFast will directly handle the collection of old batteries and replace them with new ones when needed. For those with high travel needs, the cost of using an electric car will be much more economical than a gasoline car. Especially in times of "gasoline scarcity" like today, choosing to travel by electric car is considered a more optimal solution. In fact, after experiencing it, many people do not want to go back to using a gasoline car after owning an electric car.
Infrastructure
To ensure that users do not encounter difficulties during their journey, manufacturers must meet the demand for a high-density charging station system. VinFast electric vehicle users can rest assured, as the company is implementing a nationwide "green charging station" campaign to meet the charging needs of the electric vehicle community.
As of October 14, 2022, VinFast has completed the installation of 493 charging stations in 26 provinces/cities in the North, 318 charging stations in 19 provinces/cities in the Central region and 256 charging stations in 20 provinces/cities in the South. Users can charge their vehicles at many locations such as Vincom Shopping Centers, office buildings, gas stations, parking lots, and highway rest stops. VinFast also provides high-capacity charging stations to help users quickly charge their vehicles while traveling. In addition, VinFast provides home chargers to optimize convenience and save costs for each car owner.
Not only contributing to reducing air pollution, electric vehicles also bring many direct benefits to users. If receiving strong support from the Government, businesses will have the opportunity to promote the production of green cars. This will create favorable conditions for consumers to buy and use electric cars at a cost savings. This is one of the important conditions to promote the electrification revolution of transportation in Vietnam, towards a sustainable future.
