Seeking a launching pad for your investment in Vietnam’s electric vehicle market
HO CHI MINH CITY, Vietnam, June 17, 2024 — Vietnam has one of the most promising automotive markets in Southeast Asia. It is in a unique position to leapfrog internal combustion engines and jump straight into the widespread adoption of electric vehicles, and this has not been unnoticed by investors.
In recent years, car ownership has expanded rapidly; notwithstanding a temporary dip in sales, the long-term outlook appears strong thanks to the nation’s growing economy, rapid urbanisation and burgeoning middle-class demographic. Adding to this dynamic landscape is the influence of electrification and digitalisation, which started to gain more attention locally with the arrival of VinFast to the scene.
While VinFast dominates domestic electric vehicle sales, other brands such as BMW, BYD, Great Wall Motor, Mercedes-Benz, TMT Motors, are also making headway by introducing their new energy vehicles to Vietnam. These new entrants are shaping a more competitive landscape and amplifying the need of an ecosystem catered to electric vehicles in order to achieve a 25.8 percent CAGR over a 2023 to 2032 forecast period.
Against this backdrop, the country holds significant potential for investment across production, assembly, after-sales services and everything in between, provided the government’s continual support, particularly in view of environmental targets, an ongoing shift in investment patterns and supply chain realignment across the region.
In fact, the nation already offers incentives and open-door policies to boost car ownership, stimulate investment, and facilitate imports and exports. This includes the cooperation in several trade agreements like the ASEAN Trade in Goods Agreement (ATIGA), Regional Comprehensive Economic Partnership (RCEP), and EU-Vietnam agreement, which reduce a number of tariffs and barriers on importing and exporting parts, components and vehicles, as examples.
These opportunities are a key reason for those looking to participate at this week’s Automechanika Ho Chi Minh City. As Vietnam’s largest regional trade fair for the automotive aftermarket, the exhibition will converge some 500 exhibitors (from 23 countries and regions) looking to meet local market needs, thus, a must-attend event for finding potential business partners and gathering market information.
Companies will present a comprehensive range of showcases, including Autel, BTS TECHNOLOGIES, FPT Automotive, Hengst, LAUNCH, Lucas, OBD, Thinkcar, VinAI, VNH, and Zero Mileage.
It also offers a fully stacked fringe programme, with the Automotive Mobility Solutions Conference serving as a notable highlight. The two-day agenda (20 to 21 June 2024) will delve into Vietnam’s efforts to drive sustainability within the automotive industry amidst the green energy transition, digitalisation, and automotive innovation.
One highlighted session will cater to prospective investors looking to gain deeper insights into the current regulatory landscape and emerging opportunities. It will delve into the government’s commitment and progress in establishing centralised FDI channels, dedicated programmes and sandboxes for mobility solutions, as well as the inflow of EVs and manufacturers locally.
Speakers across the conference series join from 3D Smart Solutions, ABB Automation and Electrification Vietnam, A.P. Moller – Maersk, Applus+ IDIADA, Best Logistics Technology Vietnam, Bosch Global Software Technologies, CCX Partners, FPT Automation, Germany Industry and Commerce in Vietnam (AHK Vietnam), Schaeffler Technologies, Vietsol, and VinAI.
In fact, topics will closely examine the influence of electrification and digitalisation across all aspects of society. Looking at the broader picture, a myriad of related investment opportunities is emerging – from the development of charging infrastructure, intelligent car parks, and road network upgrades, to fleet optimisation.
Attendees that would benefit joining the programme include energy companies, auto manufacturers and suppliers, fleet owners and operators, government representatives and environmental agencies, technology leaders and providers, urban planners, supply chain professionals, R&D, technicians, mechanics, repair specialists, entrepreneurs, investors, financial analysts, and start-ups.
Automechanika Ho Chi Minh City will take place at the Saigon Exhibition and Convention Center from 20 to 22 June 2024.
