The popularity stems from the cars' advantages such as zero emissions, affordable prices, lower operating costs compared to gasoline-powered vehicles, and preferences offered by the government and vehicle manufacturers.

In a draft decree amending Decree No 10/2022/ND-CP dated January 15, 2022 on first-time registration tax, or FRT, sent by the Ministry of Finance (MOF) to the government, it was highlighted that a zero percent FRT rate on electric cars (instead of 10-12 percent on gasoline and diesel cars with the same seating capacity) would reduce the cost of registering vehicles. 

This has enhanced consumer access to electric cars and encouraged the use of this greener mode of transport.

Over three years of implementation, the number of electric cars registering for FRT has surged nearly 20 times, from 4,040 vehicles in the first 10 months of 2022 to 79,781 in 2024.

From March 1 to December 31, 2022, the number of electric cars registered for FRT reached 4,040, averaging 404 vehicles per month. In 2023, the figure soared to 29,281, averaging 2,440 vehicles per month, a 6.04-fold increase compared to 2022.

In 2024, the number of FRT electric cars hit 79,781, averaging 6,648 vehicles per month, a 2.72-fold increase over 2023.

MOF commented that after three years, electric cars have gradually established a solid position in Vietnam’s automotive market, thus supporting distributors in boosting sales of eco-friendly vehicles and giving businesses confidence to invest in the production and assembly of electric cars.

In the Vietnamese market, in 2024 alone, VinFast delivered over 87,000 electric cars, becoming the best-selling car brand in Vietnam after roughly three years of fully transitioning to electric vehicles. 

In January 2025, VinFast delivered over 10,000 electric cars of various types, continuing to lead the Vietnamese market.

VinFast’s Duong Thi Thu Trang said this impressive sales figure shows that Vietnamese consumers are increasingly embracing eco-friendly transport.

The latest report from RMIT University predicted that Vietnam’s electric car market will have a value of $5-7 billion in the next five years, opening significant opportunities for both domestic and international businesses.

Many other car manufacturers, including TMT Motor, BYD, MG, Mercedes-Benz, BMW, Audi and others, are also introducing products to Vietnam. This is creating a bustling electric car market, offering more choices to consumers.

Emission reduction

In recent years, air pollution has become a pressing issue, attracting significant attention from the community. Particularly, in the northern key economic regions around Hanoi and the South around HCM City, air pollution continues to rise at an alarming rate, affecting the quality of life.

Notably, emissions from road transport account for a large proportion of total air pollution emissions in urban areas.

The rapid increase in the number of fossil fuel-powered cars in recent years has been a primary factor exacerbating air pollution.

According to the IQAir air quality monitoring system, major cities in Vietnam consistently rank among the world’s most polluted, with the Air Quality Index (AQI) reaching over 250, classified as “very unhealthy.”

Air quality monitoring results from the Ministry of Natural Resources and Environment (MONRE) and local authorities also indicate a worsening trend. 

Air pollution not only causes dangerous health conditions but also negatively impacts the environment, contributing to climate change and global temperature increases.

To improve air quality caused by transport, the government has implemented a series of measures, including transitioning from gasoline and diesel cars to electric cars. 

Electric cars' outstanding advantages help to conserve dwindling natural resources and reduce emissions.

According to MONRE’s preliminary calculations, the current number of electric cars in Vietnam has contributed to reducing emissions by approximately 0.5 million tons of CO2 equivalent annually, with even greater contributions expected in the coming years as electric vehicle numbers are projected to grow by 25-30 percent per annum.

Many countries are also trending toward restricting or phasing out fossil fuel vehicles while promoting clean-energy alternatives. For example, Singapore, which aims to completely eliminate fossil fuel vehicles by 2040, offers robust financial support to boost the use of electric cars and vehicles.

Tam An