Vietnam urged to accelerate charging infrastructure to embrace EV wave

The 2025 Energy Innovation Forum, held on Thursday in Ho Chi Minh City by the State Agency for Technology and Innovation under the Ministry of Science and Technology, in collaboration with key partners, brought together industry experts and major enterprises to address these issues.

90% of key equipment still imported

As Vietnam moves toward a major energy transition, especially with the rapid growth of renewable energy, Dr. Nguyen Quang Nam, dean of the Faculty of Electrical and Electronics Engineering at the Ho Chi Minh City University of Technology, noted surging demand for critical devices like inverters, EV chargers, energy storage systems, and smart grid management technologies.

However, over 90 percent of this essential equipment is still imported. Most domestic companies are only capable of assembling parts, lacking access to core technologies such as semiconductors, power control systems, and intelligent energy management.

This gap is pronounced in the electric vehicle sector.

According to forecasts by the Vietnam Automobile Manufacturers’ Association, Vietnam is expected to have around one million electric cars on the road by 2028, rising to 3.5 million by 2040.

The government aims for EVs to make up 30 percent of new vehicle sales by 2030.

While Vietnam currently has tens of thousands of charging stations and at least 150,000 EV charging ports, the country will need tens of thousands more fast-charging stations, including ultra-fast charging systems for electric buses and trucks.

Meanwhile, the smart grid initiative is still in its early stages, even as demand from renewable energy and EVs continues to rise.

Vietnam Electricity has set a goal to digitize the power grid by 2030, but achieving this will require domestic development of key components.

Dr. Nam emphasized that mastering manufacturing technology is not just a technical requirement; it is a matter of national strategic importance.

He proposed five key areas of technological focus: advanced semiconductor R&D, domestically-produced inverters, smart energy storage, bidirectional EV charging stations, and secure digital power grids.

Green enterprises struggle to access capital

According to the World Bank, Vietnam needs to mobilize around US$368 billion, equivalent to 6.8 percent of its GDP annually, by 2040 to achieve its net-zero emissions target.

Vo Tan Thanh, vice-chairman of the Vietnam Chamber of Commerce and Industry, affirmed that energy is the lifeblood of the economy, closely tied to national security, sustainable development, and quality of life.

However, during the transition from traditional to green energy, Vietnamese enterprises are under significant pressure in terms of capital, technology, and global competition.

Nguyen Thi Minh Hue, project director at climate innovation consulting firm KLINOVA, pointed out that while green finance is growing, it remains modest in scale.

As of March 2025, green credit made up just 4.3 percent of total outstanding loans in the financial system, while green bonds accounted for only 1.5 percent of total bond issuance, and only two ESG (environmental, social, and governance) funds exist nationwide.

Many green projects still struggle to secure loans due to their small scale and lack of collateral.

“Carbon credits cannot yet be used as collateral for loans. Most enterprises must rely on land,” said Hue.

She proposed integrating ESG criteria into credit assessment processes, legalizing carbon credits as financial instruments, developing green investment funds, and expanding credit guarantees.

In addition, tax and fee incentives, a direct power purchase market, and adjusted electricity pricing policies are needed to ensure stable revenue for green enterprises.

Pham Viet Hong, deputy director of the State Agency for Technology and Innovation, emphasized Vietnam's strong commitment to sustainable development and national energy transition.

To support the business community, the National Assembly has passed Resolution 198, which offers various tax incentives.

Under Resolution 198, innovative startups are exempt from corporate income tax (CIT) for the first two years and receive a 50-percent CIT reduction for the following four years.

Personal and corporate income taxes are also waived on capital transfers. Newly established small and medium-sized enterprises receive a three-year CIT exemption.

Experts and scientists working at startups or R&D centers are granted personal income tax reductions or exemptions for up to six years.

Training expenses for supply chain workers are considered deductible when calculating taxable income.

Avoiding energy security risks

“Ensuring energy security has become a top priority in economic development,” said Dang Hai Dung, deputy director of the Agency for Innovation, Green Transition and Industry Promotion under the Ministry of Industry and Trade.

He noted that with a projected population of 102 million people by 2025, Vietnam’s energy demand is growing rapidly. Since 2023, the country has had to import coal and liquefied petroleum gas.

To address this, the Politburo has issued Resolution 70 on national energy security through 2030 with a vision to 2045. It sets targets for total primary energy supply to reach 150–170 million tonnes, renewable energy to account for 25–30 percent, power capacity to reach 183–236 GW, and strategic petroleum reserves to cover 90 days of net imports.

The plan also includes developing liquefied natural gas infrastructure.

The key pillars of this strategy include energy efficiency, technological development, environmental protection, and the promotion of a circular economy.