The report, "Vietnam: Recommendations to the National Roadmap and Action Plan for the Electric Mobility Transition", released in November, identifies the essential areas as boosting EV supply and production, incentivising consumer demand, expanding charging infrastructure, preparing the power sector for rising electricity demand, and developing a skilled EV workforce.

Vietnam has set ambitious targets to transform its transport sector. By 2030, the country aims for half of urban vehicles to be powered by electricity or green energy, with 100 per cent of urban buses and taxis meeting these criteria. By 2050, Vietnam aims to have all road vehicles powered by electricity or green energy.

If these goals are achieved, the transition could reduce greenhouse gas emissions by 5.3 million tonnes of CO₂ equivalent (CO₂e)–8 per cent of Vietnam’s 2030 emissions reduction target–and by 226 million tonnes, or 60 per cent of the target, by 2050.

“Decarbonising transport with EVs is a complex undertaking, and Vietnam's commitment is a crucial first step,” said Mariam J. Sherman, World Bank’s country director for Vietnam, Cambodia, and Laos. “Success hinges on collaboration. Government ministries, private investors, and citizens must work together to reshape the vehicle market, mobility patterns, and energy consumption.”

Vietnam’s transition to EVs will initially be driven by two-wheeled vehicles, which dominate private mobility in the country. Currently, electric two-wheelers account for 12 per cent of the market. The World Bank projects that, with targeted policy interventions, this figure could rise to 75 per cent by 2035.

Policy measures could include facilitating consumer financing to make EVs more affordable, implementing robust safety standards and testing protocols, encouraging the supply of higher-power, longer-range electric two-wheelers, and promoting the retirement of older gasoline-powered two-wheelers.

Beyond 2035, passenger cars are expected to surpass two-wheelers as the dominant mode of private transport. The report predicts that electric cars could account for 93 per cent of car sales between 2036 and 2050, provided Vietnam develops an extensive EV charging network to support this shift.

Public and commercial vehicles—particularly buses and trucks—play a disproportionate role in emissions. While they represent only 2 per cent of registered vehicles, they contribute 65 per cent of transport-related emissions.

The report emphasises that transitioning to electric buses will require strong policy interventions, including measures to boost ridership, establish new standards, and ensure financial viability. Electrifying small commercial trucks under five tonnes is also seen as a promising step.

For larger, heavy-duty trucks, Vietnam may need to focus on improving fuel standards and

Vietnam’s power sector will need to scale up significantly to support the growing demand for EV charging. While the strain on the grid is expected to remain manageable until 2030, demand will increase sharply thereafter.

By 2035, the country will need to expand electricity generation by up to 5 per cent and network capacity by 4 per cent. By 2050, these figures will rise to 30 per cent and 15 per cent, respectively, to meet EV adoption targets.

To accommodate this growth, Vietnam will require up to $9 billion in additional power sector investments by 2030. Between 2031 and 2050, the country will have to invest $14 billion annually to expand generation and transmission capacity, on top of the investments already outlined in the Eighth Power Development Plan.

The World Bank report underscores that Vietnam’s transition to electric mobility is a long-term effort requiring coordinated action across government, private investors, and consumers. While the challenges are significant, the rewards are clear: a greener transport sector, reduced emissions, and progress towards the nation’s climate goals.

By addressing supply, demand, infrastructure, energy, and workforce needs, Vietnam can set an example for other developing countries in adopting sustainable mobility solutions.