Statistics from the Vietnam Registry show that as of the end of 2023, the country had approximately 22,000 pure electric cars and over 11,000 hybrid vehicles, both domestically produced and imported, licensed to operate.
Stepping into 2024, the market witnessed the entry of numerous new electric vehicle brands, while VinFast delivered more than 20,000 electric vehicles in the first half of the year and continues to receive tens of thousands of orders for its VF3 mini electric car. The rapid growth of the electric vehicle market has put immense pressure on the domestic charging infrastructure.
A Host of Businesses Join the Fray
To meet customer demands and reassure hesitant buyers, automakers are compelled to race to invest in or collaborate with partners to build and expand their charging networks as quickly as possible. This presents both a challenge and an opportunity for businesses to reap billions of dong from this novel industry.
The largest investor in charging infrastructure at present is the giant VinFast, with about 150,000 charging ports across all 63 provinces and cities, present on 125 national highways and expressways. This enables users of VinFast electric cars and motorcycles to travel with peace of mind, enjoying significantly lower costs compared to gasoline vehicles.
Aside from VinFast, the market for electric vehicle charging stations has recently become more vibrant with the entry of new players such as EV One, EverEV, GreenCharge, Autel, and Star Charge. Among them, EverEV, a Hanoi-based company specializing in the distribution, installation, operation, and investment in professional electric vehicle charging infrastructure, has invested in 46 charging stations and is opening several more in the last few months of this year. In addition to public fast-charging points, EverEV has also installed more than 4,000 home charging points.
EV One, a Ho Chi Minh City-based company, currently operates 40 charging stations and plans to increase this number to 80 by the end of 2024 and a total of 200 stations by 2025. According to their announcement, EV One’s charging prices are currently the highest in the market, at VND 7,900 per kW for slow chargers and VND 9,900 per kW for fast chargers.
A Singapore-based company, Charge+, is also expanding its investment in charging stations across Southeast Asian countries, including Singapore, Thailand, Malaysia, Cambodia, and Vietnam. However, their presence is still limited, with only about 10 stations in Vietnam out of a total of 50 in the region. Charge+ plans to invest in 10,000 charging points in Southeast Asia by 2030, with roughly half of them located in Vietnam.
Notably, not only are businesses investing in public charging stations, but hotels, shopping malls, restaurants, and entertainment centers are also installing charging stations with fees to provide amenities for their customers and attract new ones.
Mr. Tran Quoc Khanh, General Director of Saigon Rach Gia Hotel in Kien Giang, shared that the hotel has just installed two electric vehicle charging stations at a cost of approximately VND 160 million. Since the installation, about 10-15 vehicles come to charge at the station daily, mostly belonging to guests staying at the hotel.
An EverEV charging station can serve multiple electric vehicle brands on the market
Intense Competition
Most recently, a large state-owned enterprise, Vietnam Petroleum Power Corporation (PV Power), officially entered the electric vehicle charging market by putting into operation its first pilot charging station in Hanoi.
The station, with an investment of VND 1.8 billion, has a total capacity of 100-120 kW. Each station is equipped with two charging points, with a capacity of 50-60 kW per port. Notably, the charging cost at this station is quite competitive, at only VND 3,858 per kW during normal hours and less than VND 3,000 per kW during off-peak hours (nighttime).
PV Power stated that the government is encouraging and has set targets for the transition from fossil fuel-powered vehicles to electric ones. Consequently, the demand for electric cars among the population is expected to increase in the coming time.
Recognizing this potential, PV Power sees the investment in and construction of charging stations as a new business opportunity that aligns with its development strategy for the next phase.
To materialize this strategy, PV Power signed a cooperation agreement with EN Technologies Inc. (South Korea) to research and develop a charging system in Vietnam. PV Power is responsible for locating the charging stations, providing technical infrastructure, including the input power source, supplying all equipment and distribution cabinets, construction, installation, site improvement, and other costs such as insurance, testing, and related permits.
According to industry experts, PV Power’s entry into this arena will make the charging station market more competitive, benefiting electric vehicle users through reduced charging costs and, consequently, boosting the development of the electric car market.
In reality, even before PV Power ventured into this field, Mr. Pham Nhat Vuong, Chairman of Vingroup – the parent company of VinFast, had established the Global Charging Station Development Company V-GREEN with capital in the thousands of billions of dong. V-GREEN plans to invest an additional VND 10,000 billion in the next two years to build new stations and upgrade VinFast’s existing charging network.
According to Mr. Huynh Tien Dat, Director of the EV One charging station system, investing in charging infrastructure is encouraged by the government, but there are still many challenges, especially in accessing bank capital due to the novelty of this sector. Moreover, the high investment cost and the inadequate power supply in some areas add to the difficulties.
Notably, the legal framework for this industry remains unclear, and car manufacturers are hesitant to rely on third-party charging solutions, leaving prospective participants in a state of confusion. There is a pressing need for a clear legal framework regarding charging infrastructure standards and supportive policies for capital access to attract more businesses to engage in developing charging stations,” suggested Mr. Dat.
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