HÀ NỘI — Việt Nam emerged as Southeast Asia’s largest electric-car market in 2025, with electric vehicles accounting for nearly 40 per cent of new-car sales as adoption more than doubled, putting the country among the world’s leading markets for electric mobility, according to the International Energy Agency (IEA).

The rapid adoption put Việt Nam ahead of Thailand and Indonesia and above the global average of about 25 per cent, highlighting the speed at which electric vehicles (EVs) have gained ground in a market close to zero in 2020.

In its Global EV Outlook 2026, the IEA said electric-car sales in Southeast Asia more than doubled in 2025 to over 500,000 vehicles, with EVs accounting for nearly one in five new cars sold.

Việt Nam, Indonesia and Thailand led the regional growth, supported by policy incentives, expanding domestic production and imports, particularly from China, the IEA said.

In Việt Nam, electric car sales more than doubled in 2025, lifting the EV share of new car sales to around 40 per cent, above levels recorded in most European countries, the report said.

The transformation has been particularly striking given the market’s starting point. Electric cars had only a marginal presence in Việt Nam in 2020 before sales began accelerating rapidly.

Thailand was the region’s second-largest electric-car market in 2025, with sales rising 70 per cent to about 140,000 vehicles, nearly one-quarter of new-car sales. 

Globally, electric-car sales exceeded 20 million in 2025, up 20 per cent from the previous year, with EVs accounting for 25 per cent of all new-car sales, or one in every four vehicles sold.

China remained the world's largest EV market, with more than 13 million electric cars sold and an EV sales share of nearly 55 per cent. Europe recorded 4.2 million EV sales, representing 28 per cent of new-car sales, while the United States remained at around 10 per cent.

The IEA said the growth in Southeast Asia was supported by a combination of government incentives and growing local production and imports.

Việt Nam has supported EV purchases through exemptions from registration fees for battery-electric vehicles since 2022, while VinFast’s expansion of affordable models has helped broaden the market, the IEA said.

The carmaker said it delivered 175,099 electric cars in Việt Nam in 2025 and 137,697 units in the first seven months of this year. It aimed to sell 300,000 electric cars this year.

The IEA expects the trend to continue, projecting that Việt Nam could reach an electric-car sales share of more than 80 per cent by 2035, the highest among Southeast Asian countries.

Market research company Statista said Việt Nam’s electric-car market is gaining momentum as rising fuel costs and growing environmental awareness together with Government incentives encouraged consumers to consider switching to EVs

Domestic industry data showed that nearly 29 per cent of newly registered vehicles in the first half of this year were new-energy vehicles, including battery-electric and hybrid models.

Vietnam Automobile Manufacturers’s Association projected that electric cars on Việt Nam’s roads would reach around 1 million by 2028 and 3.5 million by 2040.

Charging infrastructure getting ready

 

The rapid shift towards electric mobility is prompting the charging infrastructure needed to support a growing EVs on road.

VinFast currently has the largest charging network in Việt Nam through V-Green with more than 150,000 charging ports nationwide and planned to focus on larger charging hubs to support long-distance travel, while expanding battery-swapping infrastructure for electric motorbikes. VinFast has also worked with Petrolimex and PVOIL to install EV charging facilities at petrol stations.

PV Power, a unit of PetroVietnam, has also moved into the sector with the signing of a cooperation agreement with the Republic of Korea’s EN Technologies Inc. to study and develop EV charging systems in Việt Nam.

The Government also aimed to make charging infrastructure a key part of its broader green-transport strategy.

Under the programme to shift the transport sector towards green energy with the long-term goal of achieving net-zero greenhouse gas emissions by 2050, Việt Nam calls for promoting the production, assembly and import of EVs and developing charging infrastructure.

The Government has also instructed ministries to review regulations on the installation of charging stations at petrol stations and develop standards for charging facilities in apartment buildings, commercial centres and roadside rest areas. — VNS