Vietnam’s electric-car revolution has rewritten Southeast Asia’s automotive rankings. Electric models captured nearly 40% of the country’s new-car sales in 2025, more than doubling their market presence within one year. In a dramatic regional shift, the Vietnam EV Market Overtakes Thailand as consumers embrace cleaner, increasingly affordable mobility.
The achievement places Vietnam far above Southeast Asia’s average and the global EV sales share of approximately 25%. More strikingly, the market had virtually no electric-car sales in 2020. Strong domestic manufacturing, expanding charging access, government incentives, and changing urban preferences have now transformed Vietnam into one of the world’s fastest-electrifying automobile markets.
Vietnam became Southeast Asia’s biggest electric-car market in 2025 after EVs secured nearly 40% of new-car sales. VinFast’s huge delivery volumes, more than 150,000 charging ports, and supportive government policies drove adoption beyond Thailand, Indonesia, and most European markets.
VinFast Powers the Historic Sales Boom
The biggest force behind the transformation is homegrown manufacturer VinFast. The company delivered 175,099 electric cars domestically during 2025 and targeted 300,000 deliveries for 2026. It reported 137,697 units during the first seven months of 2026, rising to 154,073 by August.
In August, VinFast vehicles occupied Vietnam’s four best-selling model positions. Affordable products and strong brand visibility explain why the Vietnam EV Market Overtakes Thailand despite Thailand’s established manufacturing base. Thailand sold about 140,000 electric cars in 2025, up 70%, giving EVs nearly one-quarter of its new-car market.
Why Vietnamese Buyers Are Switching
Several factors are accelerating adoption:
- Nationwide charging: V-Green operates more than 150,000 charging ports, while PV Power is developing additional networks for longer journeys.
- Government support: Battery-electric vehicles have received registration-fee exemptions since 2022, with favorable support extending through 2030.
- Demographic momentum: A young, urban population, an expanding middle class, and rising fuel costs and environmental awareness are strengthening demand.
- Climate ambition: Vietnam is targeting net-zero transport emissions by 2050.
Global Automakers Target Vietnam
Vietnam’s rapid growth is attracting international manufacturers. Tesla registered Tesla Motors Vietnam LLC in Ho Chi Minh City on September 11, 2026, enabling vehicle imports, distribution, and retail activity.
BYD surpassed 5,000 cumulative sales by early 2026, while Omoda & Jaecoo and Geely committed to local assembly or manufacturing. Toyota, Honda, and Hyundai are simultaneously expanding hybrid offerings, with the segment reportedly growing 65% year over year by late 2026.
The Regional and Global Picture
Across Southeast Asia, electric-car sales exceeded 500,000 units in 2025, representing almost one in five new cars. Globally, sales passed 20 million, led by China with more than 13 million units. That scale gives Vietnam growing influence across Asia’s competitive mobility industry.
The IEA projects Vietnam’s EV sales share could exceed 80% by 2035. Industry forecasts also suggest one million electric cars could be operating nationally by 2028 and 3.5 million by 2040. If expansion continues, the Vietnam EV market overtaking Thailand will represent a structural transformation, not a temporary sales spike. The Vietnam EV Market Overtakes Thailand as infrastructure, manufacturing, and consumer confidence reinforce one another.
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