Vietnam emerged as Southeast Asia’s largest electric-car market in 2025, with electric vehicles accounting for nearly 40% of new-car sales, according to the International Energy Agency (IEA). Electric-car sales more than doubled during the year, putting Vietnam ahead of Thailand and Indonesia and above the global average of about 25%. The growth has been supported by government incentives, expanding domestic production, imports and the development of charging infrastructure.
Key Overview
- Vietnam’s EV share reached nearly 40% of new-car sales in 2025.
- Electric-car sales more than doubled during the year.
- Southeast Asia sold more than 500,000 electric cars in 2025.
- Thailand sold about 140,000 EVs, with sales rising 70%.
- The IEA expects Vietnam’s EV sales share to exceed 80% by 2035.
- VinFast delivered 175,099 electric cars domestically in 2025.
- V-Green has more than 150,000 charging ports nationwide.
Vietnam Leads Southeast Asia’s Electric-Car Market
Vietnam emerged as Southeast Asia’s largest electric-car market in 2025, with electric vehicles accounting for nearly 40% of new-car sales, according to the International Energy Agency (IEA).
Electric-car adoption more than doubled during the year, placing Vietnam ahead of Thailand and Indonesia and above the global average of about 25%.
The rapid transformation is particularly notable because electric cars had only a marginal presence in Vietnam in 2020 before sales began accelerating.
In its Global EV Outlook 2026, the IEA said electric-car sales across Southeast Asia more than doubled in 2025 to over 500,000 vehicles, with EVs accounting for nearly one in five new cars sold across the region.
Vietnam, Indonesia and Thailand led regional growth, supported by policy incentives, expanding domestic production and imports, particularly from China.
EV Sales Surge in Vietnam
In Vietnam, electric-car sales more than doubled in 2025, raising the EV share of new-car sales to around 40 per cent.
Thailand was the region’s second-largest electric-car market, with sales rising 70% to about 140,000 vehicles in 2025. EVs represented nearly one-quarter of Thailand’s new-car sales.
Globally, electric-car sales exceeded 20 million in 2025, increasing 20% from the previous year. EVs represented 25% of all new-car sales, or one in every four vehicles sold.
China remained the world’s largest EV market, recording more than 13 million electric-car sales and an EV sales share of nearly 55%. Europe recorded 4.2 million EV sales, representing 28% of new-car sales, while the United States remained at around 10%.
Government Incentives Support Adoption
The IEA said Southeast Asia’s growth has been supported by government incentives, growing local production and imports.
Vietnam has supported EV purchases through exemptions from registration fees for battery-electric vehicles since 2022.
Market research company Statista also said rising fuel costs, growing environmental awareness and government incentives have encouraged consumers to consider switching to electric vehicles.
Domestic industry data showed that nearly 29% of newly registered vehicles in the first half this year were new-energy vehicles, including battery-electric and hybrid models.
The Vietnam Automobile Manufacturers’ Association projected that electric cars on Vietnam’s roads could reach around 1 million by 2028 and 3.5 million by 2040.
VinFast Drives Domestic EV Growth
Homegrown manufacturer VinFast has been a major force behind Vietnam’s electric mobility transformation.
The company delivered 175,099 electric cars in Vietnam during 2025 and targeted 300,000 deliveries for 2026. It reported 137,697 units during the first seven months of 2026, rising to 154,073 by August.
In August, VinFast vehicles occupied Vietnam’s four best-selling model positions, according to the supplied information.
VinFast’s expansion of affordable models has also helped broaden the market, according to the IEA.
The company’s growth has contributed to the availability of electric vehicles across the domestic market and increased demand for charging infrastructure.
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Charging Infrastructure Expands
The rapid shift toward electric mobility is also increasing the need for charging infrastructure.
VinFast currently has the largest charging network in Vietnam through V-Green, with more than 150,000 charging ports nationwide. The company plans 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.
Meanwhile, PV Power, a unit of PetroVietnam, signed a cooperation agreement with South Korea’s EN Technologies Inc. to study and develop EV charging systems in Vietnam.
Vietnam Targets Further EV Growth
The IEA expects Vietnam’s electric-car sales share to exceed 80% by 2035, which would be the highest among Southeast Asian countries.
The government also aims to make charging infrastructure part of its broader green-transport strategy.
Under its programme to shift the transport sector toward green energy, with a long-term goal of achieving net-zero greenhouse gas emissions by 2050, Vietnam is promoting the production, assembly and import of EVs alongside charging infrastructure development.
The government has also instructed ministries to review regulations governing charging stations at petrol stations and develop standards for charging facilities in apartment buildings, commercial centres and roadside rest areas.
Outlook
Vietnam’s electric-car market has expanded rapidly from its limited presence in 2020, with EVs reaching nearly 40% of new-car sales in 2025. Government incentives, domestic production, imports and charging infrastructure have supported the shift.
The IEA expects the trend to continue, projecting that EVs could account for more than 80% of Vietnam’s new-car sales by 2035. Meanwhile, continued expansion of charging infrastructure and the government’s green-transport strategy are expected to support the country’s broader transition toward electric mobility.
FAQs
1. How large was Vietnam’s EV market in 2025?
Electric-car sales in Vietnam more than doubled in 2025, with EVs accounting for around 40% of new-car sales.
2. How did Vietnam compare with other Southeast Asian EV markets?
Vietnam emerged as Southeast Asia’s largest electric-car market in 2025, ahead of Thailand and Indonesia. Thailand sold about 140,000 electric cars, with EVs representing nearly one-quarter of new-car sales.
3. What is driving EV adoption in Vietnam?
Growth has been supported by government incentives, expanding domestic production, imports, rising fuel costs, environmental awareness and charging infrastructure.
4. What is Vietnam’s EV target for 2035?
The IEA expects Vietnam’s electric-car sales share to reach more than 80% by 2035, which would be the highest among Southeast Asian countries.
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