Abstract:

Electrifying Vietnam’s two-wheeler vehicles (2Ws), the main transport mode in the country, is a promising approach to reducing GHG emissions and air pollution there. This study takes a close look at the readiness of and potential for mass deployment of electric two-wheelers (E2W) in the country. The analysis is from the perspective of manufacturers, who are the chief drivers of incentive policies for E2W manufacturing in the country. This briefing first provides an overview of 2W market sales in Vietnam. Vietnam’s 2W market has contracted since 2018, from 3.6 million vehicles in 2018 to 2.8 million in 2021, the lowest level in 15 years. Although the 2W market declined, the market share of E2Ws increased significantly and reached 10% in 2021. The paper also reviews the major 2W manufacturers in Vietnam, their production capacities, and E2W development plans. The study also reviews the development of charging infrastructure, the E2W industry and its supply chains, and the policy context for promoting E2Ws in the country.