Vietnam Electric Commercial Vehicle Market – Industry Size, Share, Trends, Opportunity, and Forecast, By Vehicle (Light Commercial Vehicle (LCV), Heavy Commercial Vehicle (HCV), Buses) By Propulsion (Battery Electric Vehicle (BEV), Plug in Hybrid Vehicle (PHEV)), Fuel Cell Electric Vehicle (FCEV)), By Battery (<50kwh, 50-150 kwh,>150kwh), By End Use (Logistics, Last mile Delivery), By Region, By Competition, 2020-2030F

Market Overview

The Vietnam Electric Commercial Vehicle Market was valued at USD 405.30 million in 2024 and is expected to reach USD 1,499.98 million by 2030 with a CAGR of 23.67% during the forecast period. Vietnam’s electric commercial vehicle market is witnessing momentum due to regulatory frameworks encouraging clean transport and the push for net-zero emissions by 2050. According to the Ministry of Transport, Vietnam’s freight and passenger transport demand is growing at 8-9% annually, heightening interest in sustainable commercial fleets. As urban congestion and pollution become more severe, electric alternatives are positioned as viable solutions, especially for buses and urban logistics vehicles. Domestic production capability for electric drivetrains and battery systems is gradually improving, helping reduce costs and support local adoption.

Electric commercial vehicles benefit from significant cost advantages over diesel models in total cost of ownership, driven by lower energy and maintenance expenses. According to Vietnam Electricity (EVN), the average commercial electricity price is around USD 0.08/kWh, much cheaper than diesel, which averaged USD 0.96/litre in 2024. Growing urbanization and e-commerce growth, with Vietnam’s e-commerce market forecast to surpass USD49 billion by 2025 (per Vietnam E-Commerce Association), drive demand for electric last-mile delivery vans and trucks. Large public transport initiatives are also expected to shift bus fleets toward electric power to meet environmental targets.

Supply chain challenges and high upfront costs remain obstacles. Battery raw material sourcing is impacted by global market volatility, and Vietnam currently imports many EV components, raising vulnerability to international price shifts. Consumer perception and charging infrastructure gaps are additional concerns. Nevertheless, advancements in battery chemistry and government incentives are bridging barriers. The electric commercial vehicle segment is gradually gaining stakeholder confidence as viable products, local engineering capability, and charging networks expand.

Market Drivers

Government Climate Commitments and Rising Fuel Prices

Vietnam has pledged to reach net-zero emissions by 2050, pushing strict policies to cut transport emissions. The Ministry of Transport plans major public fleet electrification, while tax incentives and import duty reductions encourage electric commercial vehicle uptake. As urban centers confront air quality issues, regulations targeting older diesel fleets further motivate adoption. These policy measures create a supportive framework for electric commercial vehicle growth across freight and passenger applications.

Furthermore, according to the General Statistics Office of Vietnam, diesel prices in 2024 averaged around USD0.96/litre, a sharp rise from previous years. This increase pressures fleet operators facing higher operating costs, making electric vehicles, with significantly cheaper electricity, more appealing for long-term savings. Logistics and passenger services see electric vehicles as cost-effective alternatives, improving competitiveness and budget predictability in volatile fuel markets.

Urbanization and Congestion

Vietnam’s urban population continues to swell, with urbanization projected to reach 45% by 2030 per the Ministry of Construction. Cities like Hanoi and Ho Chi Minh City struggle with congestion and pollution. Electric commercial vehicles offer solutions for urban operations, with lower noise, zero tailpipe emissions, and potential for nighttime operations due to quieter drivetrains. Municipalities are prioritizing electrification to improve urban living standards. Moreover, Vietnam’s e-commerce market is forecast to exceed USD40 billion in 2025 per the Vietnam E-Commerce Association. This surge intensifies demand for efficient, low-emission last-mile delivery solutions. Electric vans and light trucks offer logistics firms a sustainable way to navigate city restrictions while maintaining delivery schedules. As online retail expands, commercial electric vehicles become crucial tools for sustainable urban logistics.

Technological Advancements

Battery technology is improving rapidly, bringing down costs and enhancing performance for commercial vehicles. According to BloombergNEF, global battery pack prices fell below USD120/kWh in 2024, reducing electric commercial vehicle costs. New chemistries like LFP offer longer lifespans and better safety, making electric trucks and buses more viable. As technology matures, commercial fleets benefit from longer ranges and faster charging, encouraging broader adoption.

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Key Market Challenges

High Upfront Costs

Despite lower operating expenses, electric commercial vehicles cost significantly more upfront than diesel models. For small businesses and fleet operators, this price gap remains a hurdle, even with government support. Financing options tailored to EV adoption are still limited in Vietnam, slowing purchasing decisions. Bridging this affordability gap is crucial for widespread market acceptance.

Charging Infrastructure Gaps

Vietnam’s charging network is expanding, but remains inadequate for commercial fleets requiring rapid, high-capacity charging. Logistics and transport firms hesitate to electrify fleets without confidence in reliable charging. Depot-based solutions exist, but long-haul or intercity electric trucks face range anxiety due to insufficient public charging points. Infrastructure development must keep pace with growing vehicle deployment.

Vietnam depends heavily on imported battery cells and raw materials. Global market fluctuations in lithium, nickel, and cobalt affect prices and availability. This reliance exposes Vietnam’s electric commercial vehicle industry to supply shocks, delaying production or increasing costs. Developing local battery supply chains or recycling capabilities could mitigate these risks in the long run.

Public Perception and Regulatory Complexity

Commercial fleet operators still harbor doubts about electric vehicle performance, maintenance, and resale value. Many stakeholders remain cautious about shifting away from familiar diesel technology. Misconceptions about range, charging times, and operational reliability persist, slowing adoption. Educational efforts and real-world demonstrations are vital to build trust in electric commercial vehicles.

While incentives exist, navigating Vietnam’s evolving regulatory landscape for electric vehicles can be complex. Certification standards, import rules, and eligibility criteria for incentives can vary. This regulatory uncertainty creates hesitancy among fleet operators considering electric commercial vehicles. Consistent policies and clearer guidelines will be crucial to boost confidence and planning among market players.

Key Market Trends            

Development of Electric Bus Fleets

Vietnam is planning to deploy thousands of electric buses in major cities to reduce urban emissions and noise pollution. Municipalities like Hanoi and Ho Chi Minh City aim to replace aging diesel fleets with electric models. Electric buses offer lower operational costs and align with government sustainability targets. This trend represents a major shift in public transport policy, creating opportunities for domestic manufacturers and suppliers.

Adoption of Electric Last-Mile Vehicles

E-commerce growth is driving demand for electric vans and small trucks optimized for urban delivery. Companies seek vehicles with low emissions and the flexibility to operate in zero-emission zones. Electric last-mile vehicles help logistics providers maintain efficiency and comply with urban environmental regulations. Vietnam’s booming online retail sector fuels this trend.

Emergence of Local EV Manufacturing

Vietnamese manufacturers are investing in local electric commercial vehicle production to reduce dependence on imports and control costs. Government support, combined with growing technical expertise, is enabling new product launches in buses, trucks, and vans. Local production strengthens supply chains and fosters innovation tailored to Vietnam’s market conditions.

Battery Leasing Models

Battery leasing is gaining traction as a way to reduce the upfront cost of electric commercial vehicles. Fleet operators can separate the vehicle and battery cost, easing cash flow and lowering risk. This financial model encourages more businesses to transition to electric fleets, particularly in logistics and public transport segments.

Integration with Smart Mobility Platforms

Electric commercial vehicles are increasingly integrated into digital fleet management systems, optimizing routes, energy use, and maintenance schedules. Telematics and IoT technologies enable real-time monitoring, helping fleet operators boost efficiency and reduce operational costs. The synergy between EV adoption and digital transformation is reshaping Vietnam’s commercial transport landscape.

Segmental Insights

Vehicle Insights

Electric commercial vehicles in Vietnam span diverse segments, each tailored to unique operational requirements and market dynamics. Light commercial vehicles such as electric vans and small trucks serve the growing need for urban logistics and last-mile deliveries. These vehicles are favored for maneuverability in dense city traffic and reduced operational costs, meeting increasing demand from e-commerce and retail distribution. Operators consider electric LCVs as tools to comply with stricter urban emission norms while optimizing delivery routes for efficiency. Their lower maintenance and running costs compared to diesel counterparts enhance fleet economics for urban transport providers and small logistics firms.

Heavy commercial vehicles are emerging in Vietnam’s electric transition, with interest from logistics providers handling intercity goods movement and industrial transport. Electric HCVs are gaining traction in construction logistics, waste management, and port operations where fixed routes and predictable schedules make electrification feasible. Battery advancements allow for heavier payloads and longer ranges, making electric HCVs viable for medium-distance haulage. However, infrastructure limitations and higher upfront costs remain hurdles to faster adoption in this segment. Stakeholders monitor technological developments to ensure electric heavy trucks can match performance and operational uptime required for demanding applications.

Buses are a significant focus in Vietnam’s electric transition, driven by governmental sustainability goals and public pressure to reduce urban pollution. Electric buses appeal to municipalities due to their zero tailpipe emissions, quieter operation, and lower lifetime costs. Investments in dedicated charging depots and local manufacturing capacity are creating an ecosystem to support electric bus deployment. Municipalities consider electric buses vital for meeting national climate targets and improving urban air quality. Their deployment across city routes helps reshape public perception about electric commercial vehicles, reinforcing confidence in broader commercial fleet electrification.

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Region Insights

In 2024, Southern Vietnam plays a central role in the country’s electric commercial vehicle market due to its dense industrial base and thriving urban centers. Ho Chi Minh City, the economic engine of the region, faces severe air pollution and traffic congestion, leading local authorities to prioritize cleaner transportation solutions. Commercial fleet operators in Southern Vietnam view electric vehicles as essential for maintaining competitiveness in logistics, public transit, and municipal services while aligning with environmental targets. Strong urbanization and infrastructure development in the region further support adoption, creating a foundation for electric commercial vehicle growth.

Industrial parks and manufacturing hubs scattered across Southern provinces contribute to significant freight activity, driving demand for sustainable logistics solutions. Ports such as Cai Mep-Thi Vai and Cat Lai handle substantial cargo volumes, generating opportunities for electric heavy trucks and specialized commercial vehicles serving intra-port and short-haul operations. Companies operating in these zones increasingly explore electric alternatives to enhance sustainability credentials and reduce operational costs, leveraging shorter, predictable routes suitable for current electric vehicle ranges. Government policy interventions and local incentives support investment in electrified commercial fleets across logistics and industrial sectors.

The Northern Vietnam electric commercial vehicle market is expanding due to rapid urbanization, rising air pollution concerns, and government incentives promoting green mobility. Cities like Hanoi are pushing for cleaner public and goods transport, encouraging the adoption of electric buses, vans, and trucks. Infrastructure development, such as charging stations and urban logistics hubs, is also supporting the shift. Domestic automakers and new entrants are launching affordable electric models suited for urban delivery and transit. With growing e-commerce and demand for low-emission transport, the market is positioned for steady growth, aligning with national goals for carbon neutrality and sustainable urban development.

Recent Developments

• In May 2025, VinFast introduced a small electric cargo van aimed at urban delivery operations in Vietnam. The vehicle promises lower operating costs and zero tailpipe emissions, addressing urban congestion and sustainability goals. Its compact size suits dense city traffic, and VinFast highlights cost competitiveness compared to traditional combustion models. This launch signifies Vietnam’s growing focus on electric solutions for commercial logistics applications.
• In April 2023, GSM officially launched Vietnam’s first pure-electric taxi company, aiming to transform urban mobility with a fully electric fleet. The service highlights low operating costs and reduced emissions, aligning with national sustainability objectives. GSM plans significant fleet expansion across major cities, introducing electric vehicles into everyday transport. The move accelerates public acceptance and infrastructure growth for electric commercial vehicles.
• In 2023, Vietnam’s TMT Motors announced plans to sell 5,525 mini electric vehicles, focusing on cost-effective models for urban transport and logistics. The company aims to capture rising demand from businesses seeking sustainable vehicle options. Compact EVs appeal to operators navigating narrow urban streets and emission zones. TMT’s ambition underscores growing local production and market confidence in electric commercial vehicles.
• In June 2025, Vingroup secured an order for 1,300 VinFast electric vehicles and 1,000 charging stations to expand Vietnam’s electric mobility infrastructure. The deal highlights growing domestic demand for sustainable transport solutions across commercial and public sectors. Vingroup emphasized its commitment to supporting national green targets through local manufacturing and charging network development. This milestone underscores Vietnam’s accelerating shift toward electric vehicles and supporting ecosystems.
• In October 2024, BYD advanced its presence in Vietnam’s electric vehicle market, introducing new EV models to compete with local players like VinFast. The brand seeks to serve both passenger and commercial segments, strengthening EV accessibility. BYD’s entry brings competitive technology and manufacturing expertise. The expansion contributes to a dynamic market landscape driving broader electric vehicle adoption.

Key Market Players

• BYD Vietnam
• Dongfeng Vietnam
• Fuso Vietnam (Daimler Truck)
• Hino Motors Vietnam
• Hyundai Thanh Cong Vietnam
• Mitsubishi Motors Vietnam
• SAMCO (Sài Gòn Mechanical Engineering Corporation)
• THACO (Trường Hải Auto Corporation)
• TMT Motors
• VinFast

Report Scope:

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

·         Vietnam Electric Commercial Vehicle Market, By Vehicle:

o    Light Commercial Vehicle (LCV)

o    Heavy Commercial Vehicle (HCV)

o    Buses

·         Vietnam Electric Commercial Vehicle Market, By Battery:

o    <50kwh

o    50-150 kwh

o    >150kwh

·         Vietnam Electric Commercial Vehicle Market, By Propulsion:

o    Battery Electric Vehicle (BEV)

o    Plug in Hybrid Vehicle (PHEV)

o    Fuel Cell Electric Vehicle (FCEV)

·         Vietnam Electric Commercial Vehicle Market, By End Use:

o    Logistics

o    Last Mile Delivery

·         Vietnam Electric Commercial Vehicle Market, By Region:

o    Southern Vietnam

o    Northern Vietnam

o    Central Vietnam

Competitive Landscape

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

Available Customizations:

Vietnam Electric Commercial Vehicle Market report with the given market data, TechSci 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).

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