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In an era marked by a profound shift towards sustainable transportation solutions, the electric vehicle (EV) has emerged as a key player in driving the future of mobility. With both Vietnam and China making significant strides in this transformative industry, it’s essential to understand the dynamics at play in these two nations. As the world’s largest automotive market, China has been a trailblazer in EV technology and adoption, while Vietnam, with its rapidly growing economy, holds immense potential for electric mobility. In this article, we will conduct a comparative analysis of Vietnam’s and China’s EV markets, exploring their technological innovations, market growth, policy frameworks, and more. Our aim is to provide insights into the unique opportunities and challenges these markets present and shed light on their growing importance in the global electric mobility landscape.
Electric Vehicle Technology and Innovation
China’s Dominance in EV Innovation
When it comes to technology and innovation in the electric vehicle (EV) sector, China has undoubtedly emerged as the world’s trailblazer. Its leadership extends across a spectrum of EV domains, including autonomous vehicles, rail EVs, and electric motorcycles. The foundation for China’s prowess in the EV industry can be traced back to early investments in mining and battery production, which gave it a substantial advantage over other nations.
One area where China has been particularly influential is in the development of alternative battery technologies. The country has actively explored options beyond conventional lithium-ion batteries. Notably, the lithium-iron-phosphate (LFP) chemistry has gained widespread popularity, with an astonishing 95% of LFP batteries for electric light-duty vehicles (LDVs) being deployed in Chinese-manufactured vehicles. This commitment to innovative battery solutions has solidified China’s global leadership.
China’s technological advances also extend to two-wheel EVs, where the adoption of smart features has been remarkable. Electric motorcycles and scooters now boast IoT connectivity, GPS tracking, diverse unlocking mechanisms, AI-driven battery management, and real-time updates. These advancements have transformed the landscape of electric two-wheelers, further cementing China’s position as a technological trendsetter.
Vietnam’s Growing Presence in the EV Market
While China has established itself as a powerhouse in the EV realm, Vietnam’s EV market is in its nascent stages but holds immense growth potential. Initially focused on electric scooters, Vietnam has taken determined strides to become a significant player in the industry. The nation achieved a remarkable milestone by becoming the first in Southeast Asia to successfully establish its electric car manufacturing company.
In the realm of electric two-wheelers, Vietnam’s progress is particularly noteworthy. Electric motorcycles and scooters have captured a substantial 10% of the two-wheeler market in 2021, with nearly 1.8 million units in operation. This remarkable feat positions Vietnam as the second-largest market for two-wheeler electrification globally, following closely behind China. Homegrown companies like VinFast and Pega dominate the electric two-wheeler landscape.
In the electric four-wheeler segment, Vietnam has experienced a significant uptick. As of August 2022, nearly 3,000 electric cars were produced, assembled, or imported, reflecting substantial growth since 2019. VinFast spearheads the domestic electric car market, with foreign companies also entering the fray, supported by government initiatives. The transition to EVs holds promise in reducing the transport sector’s greenhouse gas emissions, aligning with clean and renewable energy sources.

Both China and Vietnam have recognized the importance of collaborative efforts in driving EV innovation. China’s collaborations span the globe, with partnerships established with industry giants like Tesla and BMW, leveraging their expertise to propel EV technology further. Vietnam, on the other hand, actively seeks international collaborations to accelerate its technological advancements, frequently partnering with global automakers and technology firms. As the EV landscape continues to evolve, these collaborative endeavors are pivotal in shaping the technological future of both nations.
Electric Vehicle Market Growth and Potential
The Pinnacle of the Chinese EV Market
In the realm of electric vehicles (EVs), China stands as a beacon of unprecedented growth and dominance. The Chinese EV market is poised for exponential expansion, with its estimated revenue reaching a staggering US$292.1 billion in 2023. This surge is underpinned by China’s resolute commitment to clean energy initiatives and unwavering government support. Projections paint a compelling picture, with the market expected to experience a robust compound annual growth rate (CAGR) of 6.38% from 2023 to 2028.
China’s aspiration to become a global leader in EV production is well within reach, with forecasts suggesting that by the close of 2035, an astounding 50% of all car sales in the country could be EVs, marking a historic milestone for the world’s largest automobile market. The Chinese EV landscape is teeming with vibrancy and competition, boasting over 94 brands offering an extensive array of more than 300 EV models across various price segments. Homegrown giants like BYD, Wuling, Chery, Changan, and GAC command a formidable 81% market share as of 2022. Furthermore, a thriving ecosystem of innovative EV start-ups, including Nio, Xpeng, Neta, AITO, IM Motors, Zeeker, Aiways, and Livan, adds to the market’s dynamism, propelling China’s supremacy in the realm of EV production.
The Blossoming Prospects of Vietnam’s EV Market
Meanwhile, in Vietnam, a nation of nearly 100 million people, the outlook for electric vehicle development is exceptionally promising. Factors such as a relatively low car ownership rate within the region, steady GDP growth, a burgeoning middle class, and rapid technological advancements converge to position Vietnam as a prime market for future EV growth. Projections indicate a remarkable surge in EV adoption, with estimates suggesting that the number of EVs could skyrocket from 8,364 in 2022 to an impressive 64,497 by 2032. This transition would account for a significant share, surging from 2.9% to 13.6% of the total vehicles in the market.
Within the Vietnamese EV landscape, the two-wheel electric vehicle segment is expected to retain its dominance, given the nation’s substantial ownership of motorbikes. This sector experienced robust growth, with approximately two million units sold in the previous year. Additionally, the number of charging points in Vietnam is set to undergo a remarkable transformation, projected to surge from fewer than 27,000 in 2023 to a staggering 390,000 by 2032. While VinFast currently holds a commanding position in the market, new entrants are gearing up to make their mark. For instance, Foxconn’s commitment to invest $200 million in a factory for manufacturing and assembling electronic components, chargers, and charger controllers for electric vehicles is a testament to Vietnam’s growing allure as a hub for EV innovation and production.

Electric Vehicle Policy and Regulatory Framework
In the realm of electric vehicles (EVs), policy frameworks wield immense influence, shaping the trajectories of China and Vietnam on their respective journeys toward sustainable mobility.
China’s Pioneering EV Policy Landscape
China stands as a global benchmark for EV policy dynamism. With its visionary “New Energy Vehicle Industry Development Plan (2021-2035)”, unveiled in November 2020, China signaled its unwavering commitment to a green automotive future, aligning with the dual-carbon target. A groundbreaking move on June 21, 2023, saw China announcing a colossal tax incentive package of 520 billion yuan (US$72.3 billion) spanning four years. This unprecedented initiative aims to invigorate the EV and environmentally friendly vehicle segments, marking a historic boost for the automotive sector. Beyond national measures, several regions, including Shenzhen and Shanghai, have introduced local initiatives to fortify the EV supply chain and foster industry growth. In terms of geographical distribution, China mirrors the traditional auto sector with key clusters in Beijing-Tianjin-Hebei, the Yangtze River Delta, the Pearl River Delta, and the central region, signifying a synchronized industry landscape.
Vietnam’s Emerging EV Policy Framework
Meanwhile, Vietnam is setting its own course within the EV policy landscape. Guided by the “Automobile Industry Development Strategy to 2025, Vision to 2035,” the nation prioritizes the production of eco-friendly vehicles, including electric cars. It aligns with stringent emission standards and envisions automotive industry development in tandem with robust transport infrastructure. Vietnam’s incentive package for electric cars is particularly compelling, offering a three-year 0% registration fee for battery electric vehicles since March 1, 2022. Over the subsequent two years, the fee is set at just 50% of the rate applicable to gasoline-powered counterparts. Furthermore, the special consumption tax rate for battery electric cars has seen a substantial reduction, hovering between 1-3% until February 2027, providing a propitious springboard for EV market expansion.

Final Thoughts
In the ever-evolving landscape of electric vehicles, Vietnam’s EV market and China’s EV market present distinctive journeys. China’s resolute policy initiatives have propelled it to the forefront of the global electric vehicle industry, setting impressive growth milestones. Meanwhile, Vietnam’s electric vehicle market holds promise, with strategic incentives driving its ascent. Understanding these unique approaches is crucial in navigating the road to sustainable mobility. At Viettonkin, we serve as your strategic partner, bridging the gap for businesses and investors eager to explore the opportunities in Vietnam’s EV market and China’s EV market. Contact us today for expert insights and tailored support in this exciting journey where innovation meets opportunity.