Vietnam EV Two-Wheeler Market

Vietnam EV two-wheeler market valued at USD 220 million, driven by urbanization, government incentives, and environmental awareness, with strong growth in electric scooters and urban adoption.

The Vietnam EV Two-Wheeler Market is valued at USD 220 million, based on a five-year historical analysis. This growth is primarily driven by increasing urbanization, government incentives for electric vehicles, and rising consumer awareness regarding environmental sustainability. The shift towards electric mobility is further supported by advancements in battery technology and infrastructure development, making electric two-wheelers more accessible to the general public. Rising fuel prices and the cost-effectiveness of electric models also play a significant role in accelerating adoption, especially among urban commuters and younger consumers.

Key cities such as Ho Chi Minh City and Hanoi dominate the market due to their high population density and traffic congestion, which make electric two-wheelers an attractive alternative for daily commuting. These urban centers have seen significant investments in charging infrastructure, further facilitating the adoption of electric vehicles. The growing trend of eco-friendly transportation options among the youth and working professionals also contributes to the market's expansion in these regions. In 2024, over 65% of urban consumers aged 25-40 reported serious consideration of switching to electric two-wheelers, reflecting strong demand in metropolitan areas.

The Vietnamese government implemented the “Decision No. 08/2023/QD-TTg” issued by the Prime Minister in 2023, which exempts electric two-wheelers from registration fees and road taxes for the first five years of ownership. This regulation aims to encourage consumers to transition from traditional gasoline-powered vehicles to electric alternatives, thereby reducing urban pollution and promoting sustainable transportation solutions across the country. The policy covers all new electric two-wheelers registered from 2023 onward, with compliance requirements including proof of purchase and vehicle type certification.

Vietnam EV Two-Wheeler Market Segmentation

By Type:

The market can be segmented into four main types: Electric Scooters, Electric Motorcycles, Electric Mopeds, and Electric Bicycles. Among these, Electric Scooters are currently leading the market due to their popularity among urban commuters seeking convenient and eco-friendly transportation options. The lightweight design and ease of use make them particularly appealing to younger consumers, while the growing availability of charging stations enhances their practicality for daily use. Electric scooters have seen an estimated 18-20% increase in sales in the first half of 2025, reflecting their strong market momentum.

By End-User:

The market is segmented into Individual Consumers, Commercial Fleets, Government Agencies, and Educational Institutions. Individual Consumers dominate the market, driven by the increasing trend of personal electric mobility and the desire for cost-effective transportation solutions. The rise in e-commerce and delivery services has also led to a growing demand for electric two-wheelers among commercial fleets, further diversifying the market landscape. Urban consumers and delivery riders are the fastest-growing segments, reflecting the evolving mobility needs of Vietnam’s cities.

Vietnam EV Two-Wheeler Market Competitive Landscape

The Vietnam EV Two-Wheeler Market is characterized by a dynamic mix of regional and international players. Leading participants such as VinFast, Pega (formerly HKbike), Dat Bike, Yadea Vietnam, Dibao Vietnam, Honda Vietnam, Yamaha Motor Vietnam, SYM Vietnam, Son Ha Group, Selex Motors, Anbico, DK Bike, Dat Bike, Pega, Yadea Vietnam contribute to innovation, geographic expansion, and service delivery in this space.

Vietnam EV Two-Wheeler Market Industry Analysis

Growth Drivers

Increasing Environmental Awareness:

The Vietnamese government reported a 20% increase in public awareness regarding environmental issues from 2022 to 2023. This shift is driving consumers towards electric vehicles (EVs) as a cleaner alternative to traditional gasoline-powered two-wheelers. The World Bank estimates that air pollution in urban areas costs Vietnam approximately USD 10 billion annually in health-related expenses, further motivating the transition to eco-friendly transportation solutions.

Government Incentives for EV Adoption:

In future, the Vietnamese government allocated USD 200 million for subsidies aimed at promoting EV adoption. This includes direct financial incentives for consumers purchasing electric two-wheelers, which can reduce the effective price by up to USD 1,000. Additionally, tax exemptions for manufacturers are projected to enhance local production, making EVs more accessible to the average consumer, thereby stimulating market growth.

Rising Fuel Prices:

Fuel prices in Vietnam have surged by 15% over the past year, significantly impacting the cost of ownership for traditional two-wheelers. The Ministry of Industry and Trade reported that the average price of gasoline reached approximately 25,000 VND per liter in future. This increase is prompting consumers to consider electric alternatives, which offer lower operational costs and reduced dependency on volatile fuel markets.

Market Challenges

High Initial Costs of EVs:

Despite government incentives, the average price of electric two-wheelers remains around 40 million VND, which is significantly higher than traditional models priced at approximately 25 million VND. This price disparity poses a barrier for many consumers, particularly in lower-income segments, limiting the widespread adoption of EVs in Vietnam's burgeoning market.

Limited Charging Infrastructure:

As of now, Vietnam has fewer than 1,000 public charging stations for electric vehicles, with most concentrated in major cities. The lack of accessible charging points creates range anxiety among potential buyers, hindering the transition from traditional vehicles to electric two-wheelers and stalling market growth.

Vietnam EV Two-Wheeler Market Future Outlook

The future of the Vietnam EV two-wheeler market appears promising, driven by increasing environmental awareness and supportive government policies. As urbanization continues, the demand for sustainable transportation solutions is expected to rise. Innovations in battery technology and the expansion of charging infrastructure will likely enhance consumer confidence. Furthermore, partnerships between local manufacturers and international firms could accelerate production capabilities, making electric two-wheelers more affordable and accessible to a broader audience.

Market Opportunities

Expansion of Charging Networks:

The Vietnamese government plans to increase the number of charging stations to 5,000 by future, creating a more robust infrastructure. This expansion will alleviate consumer concerns about charging accessibility, encouraging more individuals to consider electric two-wheelers as a viable option for daily transportation.

Technological Advancements in Battery Life:

Ongoing research and development in battery technology are expected to yield batteries with a lifespan of over 10 years by future. This improvement will not only enhance the appeal of electric two-wheelers but also reduce long-term ownership costs, making them a more attractive investment for consumers in Vietnam.