The Vietnamese government plans to provide a subsidy for charging stations for electric vehicles as part of a broad plan to promote the use of electric vehicles in the country. The move is expected to be submitted to the government for approval around the end of September. The Vietnamese government also plans to introduce incentives to encourage the production and import of electric vehicles, and to promote the shift from internal combustion engine vehicles to electric vehicles. Vietnam has implemented policies to exempt new electric vehicle registration fees and reduce special consumption tax.
“The transition to green energy is crucial to achieving the country’s ambitious clean energy goals and fulfilling Vietnam’s international commitments,” said government officials. The policy’s advancement reflects Vietnam’s strong commitment to promoting clean energy and addressing global climate change.
As Vietnam’s leading electric vehicle manufacturer, VinFast Auto Ltd. (VFS.US), has more than 150,000 charging points for its electric vehicles. The company has rolled out a compact and affordable all-electric SUV, the VFS 3, aimed to become the national car of Vietnam. VinFast plans to sell 20,000 cars in Vietnam this year and has attracted significant interest from potential buyers. Meanwhile, VinFast is leveraging its extensive charging infrastructure in Vietnam to support the growth of its electric vehicles. On the international stage, VinFast is building a factory in India to produce electric vehicles and plans to expand into additional markets in South Asia and Africa.
As of the time of publication, VinFast shares were trading slightly higher by 1.34% in pre-market trading on Monday. While the electric vehicle stock has fallen 55% so far this year, the new move from the Vietnamese government undoubtedly brings hope to VinFast and its shareholders.