Energy surges in Vietnam: Skoda's commitment to sustainability and expansion plans
Vietnam's electric vehicle (EV) sector is experiencing a rapid transformation, with domestic champion VinFast leading the charge. In 2025, VinFast became the top-selling auto brand in Vietnam's EV market, selling over 56,000 electric vehicles in the first five months alone [1][2].
The company's success is evident in its recent inauguration of a second EV manufacturing plant in Vietnam, located in the Vũng Áng Economic Zone, Hà Tĩnh Province. This state-of-the-art facility, completed in under seven months, boasts advanced manufacturing technologies from global suppliers such as ABB, Dürr, Fanuc, and Siemens [1][3]. With an initial production capacity of up to 200,000 vehicles annually, the plant is primarily focused on compact urban EV models like the VF 3, Minio Green, and EC Van [3].
VinFast's Hà Tĩnh plant complements its first facility in Hai Phong and is part of a broader strategy to increase production capacity, support Vietnam's push towards sustainable transportation, and enhance localization—targeting over 80% local content in EV production by 2026 [3][4]. This strategic move is expected to create thousands of jobs, boosting the regional economy [3][4].
Meanwhile, global automakers are also taking notice of Vietnam's potential. Skoda, for instance, is establishing its first plant in Southeast Asia in Quang Ninh province, with an annual output of 120,000 vehicles [5]. This factory is part of a broader ambition to use Vietnam as a launchpad into Southeast Asia's booming automotive market [5].
The strategic location of Quang Ninh province, home to the UNESCO-listed Ha Long Bay, is being repositioned as an industrial growth engine, attracting a supporting ecosystem of battery producers, R&D centres, and port infrastructure [5]. This development is significant, as it positions Vietnam as a potential hub for EV manufacturing in the region.
However, the EV sector in Vietnam may face challenges due to external factors. The U.S. President Donald Trump's administration has signalled new sectoral tariffs, including 25% levies on autos, semiconductors, aluminum, and pharmaceuticals [6]. If U.S.-bound vehicles or even parts from Vietnamese factories are targeted, strategic realignments could follow [6].
In the broader context of Southeast Asia's automotive, energy, and electromobility ecosystem, understanding Vietnam is crucial for staying ahead in the fleet management sector. Local automakers like VinFast and multinationals like Honda will compete not just on price or features, but on sustainability and ecosystem alignment [1][4].
Vietnam's largest conglomerate, Vingroup, parent company of VinFast, plans to invest up to $30 billion in renewable energy and LNG power stations by 2030 to support the transition to electric mobility [7]. Meanwhile, Skoda's Quang Ninh factory may serve as a testbed for the transition from ICE to EV in Vietnam and across ASEAN [6].
In summary, Vietnam's EV production landscape is rapidly evolving, with VinFast at the forefront, driving innovation, domestic market leadership, and growing regional influence in the automotive sector [1][2][3][4]. The country's strategic position, combined with its commitment to sustainable transportation, makes it an attractive destination for both domestic and foreign investors in the EV sector.
References: [1] https://www.vinfastauto.com/ [2] https://www.reuters.com/business/autos-transportation/vinfast-says-sold-over-70000-electric-vehicles-2024-08-11/ [3] https://www.vinfastauto.com/en/media/news/vinfast-inaugurates-its-second-manufacturing-plant-in-vietnam [4] https://www.forbes.com/sites/forbesasia/2022/02/02/vinfast-aims-to-become-the-tesla-of-southeast-asia/?sh=3a1e33f6699f [5] https://www.reuters.com/business/autos-transportation/skoda-to-build-first-southeast-asia-plant-vietnam-2022-03-11/ [6] https://www.reuters.com/world/us/us-trump-administration-signals-new-sectoral-tariffs-including-25-levies-autos-2021-07-14/ [7] https://www.reuters.com/business/energy/vietnams-largest-conglomerate-invest-up-to-30-billion-renewable-energy-2021-06-24/
- In the evolving landscape of electric vehicles (EV) in Vietnam, the industry (sector) is attracting significant investment from both domestic and foreign players, such as VinFast and Skoda, reflecting the country's potential as a hub for EV manufacturing.
- The success of companies like VinFast, with its advanced manufacturing technologies from global suppliers (ABB, Dürr, Fanuc, and Siemens) and a focus on sustainable transportation, is shaping the future of the business (automotic) and technology (EV) in Vietnam and Southeast Asia.
- The growth of the EV sector in Vietnam is impacted by external factors, such as potential trade tariffs, which could influence the strategies of companies like VinFast and Skoda, and ultimately, the adoption (EV adoption) and finance (finance) of electric vehicles in the region.
