According to Reuters, Vietnam plans to offer electricity subsidies for electric vehicle (EV) charging stations as part of its efforts to promote EV adoption and fulfill its commitments to energy transition.
Last weekend, the Vietnamese government announced in a statement that the subsidy plan would be submitted for central government approval in mid-September this year. Currently, Vietnam is working towards its goal of achieving carbon neutrality by 2050, aligning itself with the targets of developed nations.
The Vietnamese government stated, "Green energy transition is an essential and important task in achieving green development goals and fulfilling Vietnam's international commitments." The statement also mentioned that the government would focus on developing incentives for EV production and imports, as well as encouraging users to transition from internal combustion engine vehicles to electric vehicles. Previously, the Vietnamese government had introduced favorable policies to promote EV development, including exempting new EVs from registration fees and reducing their special consumption tax.
The statement further highlighted that Vietnam will ensure that all urban areas have access to public EV charging systems, adding that unified technical standards for public charging stations will be issued by the end of this month.
According to Vietnam Electricity (EVN), there are currently nearly 150,000 EV charging ports in Vietnam, most of which are owned and operated by local automaker VinFast. However, these charging stations are primarily located in apartment buildings, shopping malls, parking lots, and gas stations. Charging stations along highways are very limited. Therefore, increasing investment in charging stations in this area will help reassure users when choosing EVs as their primary mode of transportation.
HSBC estimates that to build sufficient charging stations and have adequate renewable energy generation capacity to meet the demand for EVs, Vietnam will need approximately $12.3 billion and 14 terawatt-hours of cumulative energy from now until 2040.
