WB suggests five pillars for Vietnam’s electric transport plans

The report, entitled “Vietnam: Recommendations to the National Roadmap and Action Plan for the Electric-Mobility Transition,” envisions that half of urban vehicles in Vietnam, along with all buses and taxis, will be powered by electricity by 2030. By 2050, the goal is to completely shift all road transportation to electric or green energy. This transition is projected to reduce CO₂ emissions by 5.3 million tons, equivalent to 8% of Vietnam’s emission reduction target by 2030, and by 226 million tons, or 60% of the target, by 2050.

At the report announcement conference (Photo: VNA)

Two-wheeled vehicles, the primary mode of transportation for most Vietnamese, are expected to spearhead the transition to EVs by 2035. To accelerate this shift, the report recommends a comprehensive set of policies, including financial support for consumers, refining safety standards and inspection processes, encouraging high-performance electric motorbike production, and gradually phasing out gasoline-powered motorbikes. With these measures in place, the market share of electric two-wheelers could surge from the current 12% to an impressive 75% by 2035.

Post-2035, personal cars are projected to dominate Vietnam’s transportation landscape. With a robust charging infrastructure, electric cars could become the preferred choice for first-time buyers. To meet the targets, EVs are expected to account for 93% of car sales between 2036 and 2050.

The transition to EVs is particularly crucial for public and commercial transport. Although buses and trucks account for only 2% of total registered vehicles, they are responsible for up to 65% of emissions. To promote the adoption of electric buses, the report calls for robust policies to boost passenger numbers, update technical standards, and ensure financial viability.

To meet the charging demand by 2035, Vietnam’s power sector will need to increase electricity production by 5%, with grid capacity expanding by 4%. By 2050, these figures are projected to rise to 30% and 15%, respectively, to achieve EV development goals. To meet these targets, Vietnam will require an additional 9 billion USD by 2030 and 14 billion USD annually from 2031 to 2050, on top of the funding outlined in the National Power Development Plan for 2021-2030.

Source: VNA