Rapid growth: A Vinfast electric car on a street in Hanoi. To further promote the EV industry, the Vietnamese government needs to implement favourable and clear policies that encourage private sector involvement. — AFP
HANOI: To build a green transport system, Vietnam will need nearly US$14bil to develop a network of charging stations, said insiders.
This is expected to help reduce greenhouse gas emissions and create great tremendous opportunities for the electric vehicle (EV) market.
The transition to EVs is a huge effort toward Vietnam’s net-zero goal and environmental protection.
It will also boost the national economy, especially in reducing oil import costs and creating millions of jobs.
According to a report from the World Bank, for EVs to become mainstream, especially among first-time car buyers, the charging station system plays a key role.
It is estimated that Vietnam needs US$2.2bil by 2030 to build a network of public charging stations.
This figure will increase to US$13.9bil by 2040 and US$32.6bil by 2050 to meet most of the population’s EV demand.
With the rapid development of EV technology and the trend towards green transportation, the demand for energy-efficient vehicles is expected to increase strongly in the near future.
It is predicted that more than 2.8 million EVs will be sold from 2024 to 2035, and another three million in the 2036-2050 period if the development of the charging station network is accelerated.
Major manufacturers, such as VinFast, have pioneered this field by not only investing themselves but also implementing a franchise model that enables businesses and people to participate in developing the charging network.
This model helps promote not only the use of EVs, but also the sustainability of the EV industry in Vietnam.
Public-private partnerships are also crucial for luring investment in charging stations.
Electricity companies, fuel distributors and specialised charging service providers can also contribute to the scheme.
Insiders said that to further promote the scheme, the Vietnamese government needs to have favourable and clear policies that facilitate the engagement of the private sector.
This can be achieved through financial and non-financial incentives, as well as creating a clear roadmap for EV adoption, along with strict technical standards for charging infrastructure.
International studies have shown that subsidies for developing charging infrastructure are five to six times more effective than subsidies for purchasing EVs. This demonstrates that if the government focuses on building charging stations, Vietnam can accelerate the transition to EVs while reducing the dependence on fossil fuel energy sources.
Hanoi University of Science and Technology’s Assoc Prof Dr Dam Hoang Phuc said a clear mechanism will attract investors, thereby driving the development of Vietnam’s charging station network.
Institute of Transport Strategy and Development deputy director Nguyen Thi Phuong Hien said strong policies on energy transition are now available, but there is still a shortage of support policies for charging infrastructure development.
Thus, investing in charging stations is an essential step for the government to effectively boost the transition to EVs and green transportation. — Viet Nam News/ANN
