The rapid growth of electric vehicles (EVs) in Vietnam is driving a surge in electricity demand for charging stations, with rates for these facilities expected to be set between industrial and commercial electricity pricing. The highest proposed rate could reach 4,937 VND/kWh ($0.20).

EV adoption accelerates

VinFast, Vietnam's leading EV manufacturer, reported selling over 87,000 electric cars in 2024, far surpassing its sales targets. This milestone solidifies VinFast’s position as the number one EV brand in Vietnam and sets the stage for continued expansion in 2025.

The increasing popularity of EVs has prompted Hanoi’s municipal government and VinGroup to launch a campaign supporting eco-friendly transportation. As part of this initiative, VinFast is offering subsidies of up to 70 million VND ($2,900) for EV buyers registering their vehicles in Hanoi between January 10, 2025, and January 31, 2026.

Such incentives are expected to further boost EV adoption, aligning with Vietnam’s commitment to achieving net-zero greenhouse gas emissions by 2050. Infrastructure development, including charging stations, is seen as critical to supporting this transition.

Rising electricity demand for EV charging

Electricity consumption for EV charging accounted for just 0.031% of the national commercial electricity output in 2023. However, this figure is projected to grow dramatically.

According to V-Green, a global charging station development company, electricity demand for EV chargers is expected to increase by 277.31% between 2025 and 2030, and by an additional 9.13% between 2030 and 2035. By 2035, EV charging demand is anticipated to reach 2.2 billion kWh annually, comparable to the electricity consumption of Vietnam’s tourism sector in 2023.

Determining electricity pricing for charging stations

The Ministry of Industry and Trade is drafting a decision on EV charging electricity rates. Feedback received includes varying opinions on whether EV charging should be classified under industrial or commercial electricity pricing.

Support for commercial rates: Entities like EVN (Vietnam Electricity), the Hanoi Power Corporation, and consumer advocacy groups argue for commercial pricing, with the highest rate exceeding 4,900 VND/kWh ($0.20).

Support for industrial rates: Advocates including the Ministry of Transport and VinFast suggest industrial pricing, with a maximum rate of 3,314 VND/kWh ($0.14).

Neutral suggestions: Other stakeholders propose a dedicated pricing structure reflecting operational costs and aligning with international practices.

Proposed pricing structure

The ministry has recommended creating a separate electricity pricing category for EV charging, with rates positioned between industrial and commercial pricing. The proposed rates are:

This approach reflects the actual costs of electricity production and distribution without subsidization.

Learning from international practices

Countries like South Korea, the United States, and Thailand have implemented dedicated electricity pricing for EV charging, based on cost-reflective methodologies. These countries also provide EV incentives through tax breaks, government subsidies, and administrative regulations to encourage adoption.

According to the ministry, charging stations classified under industrial rates would pay 552–699 VND/kWh ($0.023–$0.029) less than the average system cost, depending on voltage level. Conversely, stations under commercial rates would pay 467–587 VND/kWh ($0.019–$0.025) more.

This dedicated pricing model aims to ensure fairness while supporting Vietnam’s green energy transition and addressing the growing demand for EV infrastructure.

Luong Bang