Vietnam Tops Southeast Asia EV Market with 40% Sales Share
Electric car sales doubled in Vietnam as the nation leads the region with a 40% market share, driven by new government incentives.
Key points
- Vietnam's EV market share reached nearly 40% in 2025, making it Southeast Asia's largest electric car market.
- Electric car sales in Vietnam more than doubled, significantly outpacing the global average of 25%.
- The IEA projects Vietnam's EV share could exceed 80% of new car sales by 2035.
Vietnam has emerged as the leading electric vehicle market in Southeast Asia, with EVs accounting for nearly 40 percent of new car sales in 2025. This rapid shift places the country well above the global average of roughly 25 percent, signaling a decisive turn in regional mobility trends.
According to the International Energy Agency, sales of electric cars in Vietnam more than doubled during the year. The surge is part of a broader trend across the region, where total EV sales exceeded 500,000 units, driven largely by Vietnam, Indonesia, and Thailand.
Government incentives drive adoption
Policy support has been central to this growth. Since 2022, Vietnam has offered registration-fee exemptions for battery-electric vehicles, reducing the initial cost barrier for buyers. This financial relief has helped accelerate consumer uptake beyond what market forces alone might have achieved.
Authorities are also updating regulations to support infrastructure. Ministries are reviewing rules for charging stations at petrol stations and developing standards for facilities in apartment buildings and commercial centers. These measures aim to address the practical challenges of daily charging for urban residents.
Regional and global context
While Vietnam leads the region, global dynamics remain significant. China remains the world's largest EV market with over 13 million sales and a 55 percent share. Globally, more than 20 million electric cars were sold in 2025, a 20 percent increase year on year.
Thailand also saw strong growth, with EV sales rising by 70 percent to around 140,000 units. However, Vietnam's 40 percent share significantly outpaces Thailand's near-quarter share, establishing a clear hierarchy in Southeast Asian electric mobility adoption.
Future projections for 2035
The International Energy Agency projects continued expansion, with EVs potentially accounting for more than 80 percent of new car sales in Vietnam by 2035. This would make it one of the highest adoption rates in the world, far exceeding current levels.
This trajectory supports Vietnam's broader goal of achieving net-zero greenhouse gas emissions by 2050. The country plans to promote domestic production, assembly, and importation of electric vehicles alongside robust charging infrastructure development. As reported by TV BRICS, this strategic alignment positions Vietnam as a key player in the green transport transition.
