Vietnam’s Vingroup offers gas-to-EV trade-in incentives while GSM cuts ride fares

The two programs come amid sharp volatility in global fuel prices.

The gas-to-EV trade-in program benefits customers in four markets, including Vietnam, India, Indonesia, and the Philippines, in March.

Customers who trade in gasoline-powered vehicles for electric models produced by VinFast, Vingroup's EV manufacturing arm, can receive additional incentives.

Buyers can obtain a three-percent discount on electric cars and a five-percent discount on electric motorbikes, alongside the company’s existing sales policies in each market.

Meanwhile, the discount offered by GSM, also owned by Vuong, is applied in Vietnam and Indonesia from now until March 31.

According to Vingroup, the initiatives are being rolled out as global fuel prices continue to fluctuate, putting additional pressure on travel expenses and daily living costs in many countries.

The group expected the incentives to encourage more consumers to adopt electric transportation, helping reduce operational costs and dependence on fossil fuels.

Duong Thi Thu Trang, VinFast’s global deputy CEO for sales, described the gas-to-EV trade-in program as an urgent response to geopolitical developments that are affecting socio-economic conditions worldwide.

“As a pioneer in the electric vehicle sector, VinFast and the green ecosystem companies of Vingroup aim to help mitigate the impact of rising fuel prices while promoting smarter, more sustainable, and eco-friendly mobility solutions,” she said.

The new incentives will run concurrently with, and be cumulative to, other sales policies currently in place in each market, according to Vingroup.

The Vietnamese government has issued Decree 72 reducing import tariffs on several fuel products to zero percent, effective from March 9 through April 30, in an effort to stabilize the domestic fuel market amid escalating tensions in the Middle East.

The Vietnamese Ministry of Industry and Trade on Tuesday raised retail gasoline prices while cutting kerosene rates in its latest fuel price adjustment, drawing on the petroleum price stabilization fund.

E5RON92 gasoline was capped at VND26,570 (US$1) per liter, up VND1,344 ($0.05) from the previous base price, while RON95-III rose VND2,073 ($0.08) to VND29,120 ($1.11) per liter.

Diesel 0.05S increased VND478 ($0.02) to VND30,717 ($1.17) per liter, while kerosene fell VND2,706 ($0.1) to VND32,385 ($1.23) per liter.

The price of 180CST 3.5S fuel oil rose VND3,380 ($0.13) to VND24,707 ($0.94) per kilogram, according to the ministry.

The Middle East conflict escalated on February 27 after the U.S. and Israel carried out air strikes on multiple targets in Iran.

Tehran later responded with attacks on Israeli territory and missile launches targeting dozens of U.S. bases in Gulf countries, including the United Arab Emirates, Kuwait, Saudi Arabia, Qatar, Bahrain, and Oman, resulting in casualties and property damage.

Iran has announced the closure of the Strait of Hormuz, through which around a fifth of global oil consumption passes, disrupting global fuel supplies.