Unlocking the Potential of Electric Vehicle Charging Stations: A Lucrative Yet Challenging Venture

The growing demand for electric vehicles has sparked a wave of investment in charging stations, with various business models emerging, including franchising and profit-sharing partnerships.

Leading the Trend

Since September 2024, V-GREEN Global Charging Station Development Company has launched a franchised charging station model. V-GREEN commits to sharing a fixed revenue of 750 VND/kWh with partners for a minimum of 10 years, along with covering all maintenance, marketing, and operational costs during the partnership.

Interested individuals or organizations can contact V-GREEN for site surveys and consultations to determine the optimal number of charging stations. Investors can choose between two partnership models: franchising or leasing their land to V-GREEN for charging station installation at market rates.

AG Green Energy, a company specializing in energy solutions, offers diverse investment packages for charging stations ranging from 50 to 200 million VND, depending on capacity. Mr. An Đình Nhã, the company’s director, stated that AG Green Energy handles all licensing, electrical connections, and equipment installation. For automated maintenance services post-warranty, clients will incur an additional 3-5% of revenue.

EV One, another player in the market, offers multiple investment and profit-sharing models. If partners provide the land and full investment, they receive 70% of net revenue. If EV One invests and partners only provide the land, partners receive 15% of net revenue. A 50-50 split applies when both parties share investment costs and EV One provides services.

Mr. Huỳnh Tiến Đạt, CEO of EV One, anticipates a booming charging station market as the global shift to electric vehicles accelerates, supported by government incentives. Many electric vehicle dealerships are installing charging stations at their locations and partnering with resorts, hotels, and rest stops to serve customers. “Investors are actively entering the market, driving the charging station investment wave,” Mr. Đạt noted.

High Demand, Intense Competition

In Ho Chi Minh City, charging stations have proliferated across streets, parking lots, cafes, and restaurants. This hybrid investment model maximizes land use, increases revenue, and enhances customer retention.

Ms. N.H.Y, a cafe owner in Bình Trưng Ward, struggled with low foot traffic due to her cafe’s hidden location. After partnering with V-GREEN to install two charging stations, her cafe saw a significant increase in customers, particularly Xanh SM drivers.

Mr. Vũ Lương in An Khánh Ward invested in four charging stations at 80-120 million VND each, plus a billion VND in voltage reduction costs. Despite rising demand, increasing competition forced him to add additional services like dining, rest areas, and vehicle maintenance to boost revenue.

Mr. Nguyễn Văn Hồ in Bình Trị Đông Ward noted that charging station investments are not highly profitable. “With nearly 1,000 square meters of land, renting it out could yield 70-100 million VND monthly. In contrast, investing 2.5 billion VND in three charging stations only generates 40 million VND monthly, before labor costs of nearly 10 million VND,” he explained.

Mr. Hồ estimates a four-year capital recovery period, excluding the three-month construction wait time. “The investment’s effectiveness is only slightly better than savings accounts. Operations often face interruptions due to technical issues, impacting revenue,” he shared, hoping increased electric vehicle adoption will accelerate capital recovery.

Mr. Võ Trọng Nghĩa in Tây Ninh province invested approximately 1 billion VND in three charging stations (six ports) nearly a year ago. With average monthly revenue of 20 million VND, he has only recouped the cost of one station and expects full recovery in 2-3 years. “Current revenue doesn’t match the investment. I drive a taxi to pay off bank loans,” he said.