Startup AVES taps into Vietnam's electric motorbike market

AVES is developing its business around three pillars, including smart electric vehicles, renewable energy, and Internet of Things devices.

AVES is preparing for production by recruiting staff for research and development (R&D), quality control and logistics, while moving ahead with plans to build a factory and an R&D Tech Lab in Hung Yen Province, northern Vietnam.

Le Hoang Long, AVES co-founder and commercial division director, said the company is focusing on completing its technical infrastructure and supply chain before officially launching commercial products next year.

To gauge market preferences, AVES has also announced a competition seeking designs for future electric two-wheelers, inviting ideas from the creative community.

The startup's planned market entry comes as Vietnam's electric motorcycle segment undergoes significant changes.

The country's net-zero target and green-transition policies in major cities are creating considerable room for growth in zero-emission transportation.

However, industry observers said the domestic electric motorcycle market is highly competitive, particularly for a newly-established startup.

The market is already facing fierce competition from dominant players with strong financial backing and nationwide charging networks such as VinFast, as well as niche brands that have built loyal customer bases, including Dat Bike, Selex Motors, and Yadea.

Traditional giants in gasoline motorbikes are also testing electric models, leveraging their vast dealership networks.

Another challenge is the supply chain and localization of production.

Developing an electric motorcycle that can operate reliably and withstand Vietnam's climate and urban flooding requires substantial investment in R&D and battery safety testing.

For a new company, maintaining sufficient working capital to sustain an R&D operation in Hung Yen throughout the pre-revenue period will also be a significant financial test.

Vietnamese consumers' adoption of electric motorcycles also remains closely tied to charging and battery-swapping infrastructure, as well as battery ownership and replacement costs.

Whether a newcomer like AVES can carve out a viable niche through battery technology or energy-refueling infrastructure remains to be seen.

The emergence of new players highlights the growing appeal of green transportation in Vietnam.

Yet turning a design concept into a commercial product compelling enough to persuade consumers to spend their money and then surviving the long-term competition will be a major challenge for the startup.

As part of its development strategy, AVES is working with Vietnamese news site VnExpress to organize the AVES Future Mobility Challenge 2026, a competition focused on future electric motorcycle design.

Entries will be accepted from September 21 through October 27, with total prizes worth VND265 million (US$10,200).

Contestants can compete in two categories: application design and concept design.

According to the organizers, the competition aims to seek fresh perspectives on the styling and functions of electric vehicles while connecting talented designers with the company as it develops future products.