Vietnam is rapidly emerging as Southeast Asia’s electric-mobility leader, with electric vehicles (EVs) accounting for nearly 40 per cent of new-car sales in 2025, according to the International Energy Agency (IEA).
The remarkable growth came as electric-car sales in the country more than doubled during the year, pushing Vietnam’s EV adoption rate significantly above the global average of about 25 per cent. The development underscores how a combination of government incentives, infrastructure planning and growing consumer acceptance is reshaping the region’s automobile market.
The figures, reported by TV BRICS, a partner of the News Agency of Nigeria (NAN), show that Vietnam is at the forefront of a broader electric-vehicle boom sweeping Southeast Asia.
Across the region, electric-car sales more than doubled in 2025 to more than 500,000 vehicles. EVs consequently accounted for almost one in every five new cars sold, with Vietnam, Indonesia and Thailand emerging as major drivers of the expansion.
Thailand recorded about 140,000 electric-car sales during the year, representing a 70 per cent increase and giving EVs nearly a quarter of its new-car market. Vietnam, however, recorded a much higher penetration rate, with electric vehicles approaching 40 per cent of new-car sales.
Policy driving the transition
Vietnam’s rise did not happen by chance. Government policy has played an important role in making electric mobility increasingly attractive to consumers and investors.
Since 2022, the Vietnamese government has exempted battery-electric vehicles from registration fees, reducing the upfront cost of purchasing an electric car. The country is also incorporating charging infrastructure into its wider green-transport strategy.
The measures form part of Vietnam’s broader ambition to transform its transport sector towards cleaner energy and achieve net-zero greenhouse gas emissions by 2050.
Authorities are also promoting the production, assembly and importation of electric vehicles while encouraging the development of the charging infrastructure required to support mass adoption.
The government has directed relevant ministries to review regulations governing charging stations at petrol stations and establish standards for charging facilities in apartment buildings, commercial centres and roadside rest areas.
That infrastructure push is particularly significant because the availability of convenient and reliable charging remains one of the major factors influencing consumer confidence in electric vehicles.
From incentives to industrial strategy
Vietnam’s EV strategy is extending beyond encouraging consumers to buy electric cars. The country is seeking to build an ecosystem around electric mobility, including vehicle production, assembly, imports, charging networks and supporting regulations.
This approach could give Vietnam a stronger role in the emerging electric-vehicle value chain in Southeast Asia as manufacturers and investors respond to growing demand.
The IEA expects the country’s EV market to continue expanding rapidly. Its projections indicate that electric vehicles could account for more than 80 per cent of new-car sales in Vietnam by 2035.
If realised, such a shift would fundamentally alter the country’s automobile market within less than a decade.
A regional and global shift
Vietnam’s transformation is occurring against the backdrop of accelerating global adoption of electric vehicles.
More than 20 million electric cars were sold worldwide in 2025, representing a 20 per cent increase from the previous year. EVs accounted for approximately one-quarter of global new-car sales.
China remained by far the world’s largest electric-car market, with more than 13 million EV sales and an electric-vehicle share of nearly 55 per cent of new-car sales.
But Vietnam’s performance is significant because of the speed at which adoption has accelerated in a developing Southeast Asian economy.
Its experience demonstrates that electric mobility can expand rapidly when government incentives are combined with infrastructure development, industrial policy and clear long-term environmental targets.
For Southeast Asia, the implications extend beyond the automobile industry. The rapid growth of EVs could influence electricity demand, charging infrastructure, urban planning, manufacturing, investment and the future structure of the region’s transport sector.
Vietnam’s nearly 40 per cent EV share in 2025 therefore represents more than a surge in car sales. It is a sign of a broader transformation in how Southeast Asia approaches transportation, energy and climate policy—and a possible indication of how quickly conventional vehicles could give way to electric mobility in the years ahead.
