The automobile market is not likely to see a boom as it did in 2022. The difficulties arising late last year are expected to last until mid year.

The Vietnamese government has encouraged manufacturing of electric vehicles under the green energy development plan, but standards for electric vehicles are unavailable.

Electric vehicles and concept cars were a notable trend at the Viet Nam Motor Show 2022, showing that Viet Nam was increasingly catching up with new world trends.

PM Pham Minh Chinh wants Vietnam to attract major investors from all over the world to develop the electric vehicle industry, according to an official document issued recently by the Government’s Office.

Vietnam will reduce the excise tax and registration fee placed on electric cars, with these two preferential policies anticipated to become a lever in which the local electric vehicle market, which is in its infancy, can quickly develop in 2022.

The Ministry of Trade and Industry (MoIT) has said it is cooperating with the Ministry of Finance to consider the provision of tax incentives to encourage the development and use of electric vehicles in Vietnam.

Vietnam has the opportunity to manufacture electric cars more easily than other countries with already well-established auto industries because Vietnam has no auto industry that would need to to sacrificed, experts have said.

As air pollution in big cities passes far beyond acceptable limits, the interest in electric vehicles is rising. 

 Global emissions of greenhouse gases from the power sector are expected to peak in 2026, but will still be some way above levels needed to limit temperature rises in line with the Paris climate agreement,