Vietnam Electric Bus Market By Propulsion Type (BEV, PHEV, FCEV), By Range (Less than 200 miles, More than 200 miles), By Battery Capacity (Upto 400 kWh, Above 400 kWh), By End Use (Public, Private), By Region, By Competition, Opportunities and Forecast, 2020-2030F

Market Overview:

Vietnam Electric Bus Market was valued at USD 50.64 Million in 2024 and is expected to reach USD 139.94 Million by 2030 with a CAGR of 18.46% during the forecast period. The Vietnam electric bus market is experiencing notable momentum driven by increased investments in public transportation electrification, rising awareness about sustainable mobility, and strong regulatory backing supporting cleaner urban transport. Rapid fleet modernization among transport operators, combined with surging fuel prices, is accelerating the shift toward electric alternatives. A growing preference for domestically manufactured electric buses is also supporting adoption, driven by cost efficiency and alignment with local policies. For instance, Vietnam has recently introduced 207 Golden Dragon city buses, fully assembled in Xiamen, onto its roads as of early March 2024, marking the first deployment of these buses in the country. These buses are set to begin operations immediately in Ho Chi Minh City, aiming to enhance daily transport services for residents. This large-scale introduction demonstrates rapid cross-border transit collaboration and highlights alignment with Vietnam’s vehicle specifications. The completion of the local KD (semi-knockdown) assembly project now 90% finished underscores efforts to adapt production to local regulations and strengthen future in‑market presence.

Market Drivers

Government Policy Support and Electrification Mandates

Government policy initiatives are significantly accelerating the adoption of electric buses. Regulatory frameworks encouraging electrification through subsidies, tax exemptions, and import duty reductions are making electric buses more affordable for public and private transport operators. Mandates on emissions reduction and carbon neutrality are creating an urgent need to replace traditional diesel buses with electric alternatives. Long-term transportation electrification strategies with fixed targets are fostering market predictability and confidence among manufacturers, investors, and operators. Public procurement programs are pushing electric bus deployment in high-density transport corridors, ensuring visibility and trust in the technology. National energy diversification goals also encourage the integration of clean energy sources into transportation, giving electric buses an edge in long-term sustainability planning. For instance, Vietnam is advancing electric bus adoption through strong government policies and targeted investments. Under Decision 876/QD-TTg, the country mandates 100% of new or replacement buses to be electric or green energy-powered by 2025, extending to all taxis by 2030. Ho Chi Minh City plans to convert 899 buses to clean energy by 2025, reaching over 1,800 by 2030, with Cần Giờ District piloting a 100% electric bus project. Financial incentives include up to 85% loan coverage at 3% interest, tax exemptions, and direct subsidies.

Rising Fuel Costs and Operational Savings

The volatility and long-term increase in fossil fuel prices are making traditional bus fleets more expensive to operate, shifting operator preferences toward electric buses, which offer significant cost savings on energy consumption. Electric buses present much lower per-kilometer energy costs compared to diesel, especially when paired with off-peak charging strategies or renewable energy sources. Over the lifespan of a bus, the savings from reduced fuel and maintenance expenses can offset the higher initial investment in electric technology. Electric drivetrains have fewer moving parts, which reduces wear-and-tear and minimizes downtime, resulting in greater fleet efficiency and lower maintenance requirements. Cost efficiency becomes a compelling proposition for public transport authorities seeking to optimize tight operating budgets while improving fleet reliability. The economics of electric bus operations improve further with battery leasing models and third-party charging service partnerships, which spread capital costs and allow better financial planning.

Expansion of Charging Infrastructure and Smart Grid Integration

The growing development of electric vehicle charging infrastructure is playing a crucial role in facilitating electric bus adoption. Urban centers and transport hubs are witnessing the installation of fast-charging stations, enabling electric buses to maintain reliable schedules and routes. Investment in depot-based slow-charging infrastructure complements daytime operations by ensuring buses can recharge overnight, maximizing vehicle availability. Smart grid integration allows utilities to manage load distribution and prevent strain on the power system during peak charging hours. Charging infrastructure developers are adopting modular systems, enabling scaling based on fleet expansion and network complexity. Real-time monitoring and analytics systems are being deployed to optimize charger usage, monitor power flow, and forecast demand accurately. For instance, Vietnam’s electric vehicle growth is being constrained by underdeveloped charging infrastructure, despite projected EV numbers reaching 1 million by 2030 and 3.5 million by 2040. With nearly 90,000 EVs expected in 2024, 2.5 times more than 2023, the demand for charging stations far exceeds supply. The IEA recommends building 100,000 to 350,000 chargers over the next 15 years, yet VinFast remains the only major network provider.

Download Free Sample Report

Key Market Challenges

High Initial Acquisition Costs of Electric Buses

Despite long-term operational savings, the high upfront cost of electric buses remains a major barrier to adoption, especially for smaller transport operators and municipalities with limited budgets. Electric buses typically cost significantly more than conventional diesel models due to expensive battery packs, specialized drivetrains, and integrated electronic systems. This cost disparity deters rapid fleet replacement, particularly where financing options are limited or government incentives are insufficient. Public procurement cycles often have strict cost limits, making it difficult to prioritize electric buses despite their lifecycle benefits. Leasing and battery-as-a-service models can help mitigate the capital burden, but such financial structures are not universally available or understood. Depots also require significant upgrades to accommodate charging infrastructure, which adds to the initial capital expenditure.

Range Limitations and Route Planning Constraints

Battery capacity limitations present a challenge for electric bus deployment, especially on longer or high-frequency routes where extended range is essential. Unlike diesel buses that can operate continuously with quick refueling, electric buses need careful route planning to account for battery range, charging duration, and station availability. This becomes a logistical concern for transit operators serving complex urban networks or intercity services. Variations in weather, passenger load, terrain, and driving style can impact battery performance, making it difficult to maintain consistent operations without real-time monitoring and predictive tools. Limited energy density in current-generation batteries necessitates trade-offs between passenger capacity and battery size, potentially affecting vehicle design and usability. Mid-day charging requirements can disrupt schedules and reduce vehicle availability unless charging infrastructure is well-integrated into transit hubs.

Key Market Trends

Adoption of Battery Swapping and Fast-Charging Technologies

The market is witnessing a shift toward fast-charging and battery-swapping technologies to improve turnaround times and operational uptime for electric bus fleets. Fast-charging stations enable buses to regain significant range within 15–30 minutes, making them viable for high-frequency routes without prolonged downtime. These systems are especially beneficial during peak traffic hours when continuous availability is essential. Battery swapping, although infrastructure-intensive, offers a solution where fully charged battery packs can be replaced within minutes, allowing buses to maintain seamless service schedules. These technologies are gaining traction in transit systems focused on minimizing idle time and increasing daily mileage. Implementation of charging-as-a-service models further supports these technologies by removing the capital burden of infrastructure development from operators. Fast-charging corridors and strategic placement of stations at key terminals and depots are expanding route flexibility.

Integration of Telematics and Fleet Management Software

Electric bus operators are increasingly relying on telematics and intelligent fleet management systems to enhance operational efficiency, monitor vehicle health, and optimize energy use. These platforms collect real-time data on driving behavior, battery performance, charging cycles, and route efficiency, enabling operators to make data-driven decisions. Predictive maintenance capabilities reduce downtime by identifying potential failures before they occur, allowing timely interventions. Route optimization features help adjust schedules based on traffic conditions, passenger demand, and energy availability. Integration with charging infrastructure allows automated scheduling and prioritization of charging sessions, improving overall fleet utilization. Cloud-based dashboards offer central oversight and improve transparency across all operational levels. Data analytics support sustainability reporting by tracking energy savings and emissions reductions. These tools are particularly valuable in large-scale fleets where minor inefficiencies can result in significant cost overruns.

Emergence of Local Manufacturing and Component Localization

Local manufacturing of electric buses and their components is gaining momentum, driven by rising demand and supportive policy environments that encourage self-reliance and cost control. Manufacturers are investing in localized production facilities to reduce dependency on imports, shorten lead times, and customize vehicles for domestic conditions. Battery pack assembly, electric drivetrains, and control system integration are being shifted closer to end-use markets, reducing supply chain risks. Localization enables better compliance with technical standards, climate adaptability, and aftersales service availability. It also opens up opportunities for job creation and skill development within the manufacturing ecosystem. Governments are encouraging domestic innovation through incentives for R&D and procurement preferences for locally sourced components. Collaborations between bus manufacturers, battery suppliers, and system integrators are fostering a vertically integrated ecosystem.

Segmental Insights

Propulsion Type Insights

In 2024, Battery Electric Vehicles (BEVs) emerged as the dominant propulsion type in the Vietnam electric bus market. Their dominance is driven by the simplicity of the drivetrain, lower operational costs, and growing availability of charging infrastructure. BEVs offer zero tailpipe emissions and operate with greater energy efficiency, making them an attractive choice for public and private transport operators aiming to meet sustainability goals. The absence of fuel combustion and fewer mechanical components reduce maintenance needs and ensure lower lifetime operating expenses. Governments and transit authorities are prioritizing BEVs due to their compatibility with fixed-route urban operations, where predictable range requirements align well with battery capacities.

Download Free Sample Report

Region Insights

In 2024, the Northern region led the Vietnam electric bus market due to stronger infrastructure development, higher urban density, and greater institutional focus on public transport electrification. Major cities in this region have actively deployed electric buses across high-traffic corridors, supported by the establishment of depot-based charging stations and public-private collaboration in sustainable transit solutions. The presence of key government offices and planning authorities has also accelerated policy implementation, making the Northern region a focal point for pilot programs and early-stage deployments. High passenger demand and growing air quality concerns have pushed local authorities to prioritize clean mobility, reinforcing the dominance of electric buses in this zone. For instance, Hanoi targets a 50% electric and 50% CNG/LNG bus fleet by 2030, backed by an investment of approximately USD 1.7 billion. Public-private partnerships, such as a USD 77 million electric bus contract awarded to VinBus, are playing a pivotal role in scaling green transportation nationwide.

Recent Developments

• ​In 2024, Golden Dragon completed assembling 207 city buses at its Haicang facility in Xiamen for a Vietnamese client. The fleet aims to modernize Vietnam’s urban transport system.
• In 2024, Hanoi plans to phase out diesel buses between 2031 and 2035, targeting 70–90% conversion to green alternatives by 2030. By 2026–2030, half the fleet will be electric, backed by a USD 1.7 billion investment.           
• In 2024, Hanoi launched a 12-month electric bus pilot on nine routes with expiring contracts. The program began in Q1, aiming to expand electric transport services in the city.
• VinFast has launched the EB 6, a 6.2-meter electric bus in Vietnam, offering over 250 km range and fast charging from 20% to 80% in 70 minutes. Available in city and school versions, deliveries begin September 2025.

Key Market Players

• VinFast Commercial and Services Trading Limited Liability Company
• Mercedes-Benz Vietnam
• THACO AUTO Limited Liability Company
• Yutong Bus Co., Ltd.
• Beijing Foton International Trade Co., Ltd.
• Tata Motors Limited.
• Olectra Greentech Limited
• HYUNDAI THANH CONG COMMERCIAL VEHICLE JSC
• Toyota Motor Vietnam Co., Ltd
• CHERY Automobile Co., Ltd

Report Scope:

In this report, the Vietnam Electric Bus Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

•           Vietnam Electric Bus Market, By Propulsion Type:

o    BEV

o    PHEV

o    FCEV

•           Vietnam Electric Bus Market, By Range:

o    Less than 200 miles

o    More than 200 miles

•           Vietnam Electric Bus Market, By Battery Capacity:

o    Upto 400 kWh

o    Above 400 kWh

•           Vietnam Electric Bus Market, By End Use:

o    Public

o    Private

•           Vietnam Electric Bus Market, By Region:

o    Northern

o    Southern

o    Central

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Vietnam Electric Bus Market.

Available Customizations:

Vietnam Electric Bus Market report with the given market data, Tech Sci Research offers customizations according to the company’s specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

Vietnam Electric Bus Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]