According to a report by HSBC Bank, an estimated $12.3 billion in investment is needed to develop enough charging stations to support the growing popularity of electric cars in Vietnam. Despite the fact that most people in Vietnam own motorbikes instead of cars, HSBC highlights the untapped potential of the country’s electric car market.

HSBC predicts that challenges such as high battery and car prices and limited charging station coverage will need to be addressed in order for electric vehicles to gain widespread adoption in Vietnam. To overcome these obstacles, HSBC emphasizes the importance of infrastructure development in the electric vehicle sector. The bank estimates that Vietnam needs $12.3 billion in investment and 14tWh of cumulative energy to support the growth of electric vehicles through 2040.

In addition to infrastructure, HSBC suggests that tax policies, subsidies, and partnerships with foreign businesses can help overcome price obstacles and build a stronger ecosystem for electric vehicles in Vietnam. The bank highlights efforts by companies like VinFast and Chery Automobile to establish battery factories and electric vehicle manufacturing plants in the country.

While electric cars face challenges, the electric motorbike market in Vietnam is forecasted to be more favorable due to affordable prices and high localization rates. Domestic manufacturers like VinFast, Selex Motors, and Dat Bike are expected to play a key role in the growth of electric motorbikes in Vietnam. Overall, HSBC predicts that electric vehicle sales in Vietnam could reach 2.5 million units by 2036, showing significant growth potential for the sector.