On July 18, Chinese electric vehicle (EV) maker BYD announced prices for its first three models in Vietnam: the Dolphin, SUV Atto3, and Seal.

The vehicles are priced at approximately $26,300, $30,600-34,600, and $44,000-52,000, respectively, considered high compared to petrol and other EVs in the same segment.

Liu Xue Liang, BYD Auto's general manager for Asia-Pacific said, “We have been cautious in researching the market for more than 10 years. The pricing strategy reflects our thorough research.”

BYD’s prices in Thailand are notably lower, with the Dolphin priced at approximately $15,760 and the Atto 3 at $22,520. Other Chinese brands like MG4EV and Haima 7X-E also face similar pricing challenges, with the latter having to cut prices by $5,200 recently to stimulate demand, yet is still struggling to pull in buyers.

Over 10 Chinese EV manufacturers have entered the Vietnamese market in recent times, including MG, Chery, Wuling, Haima, Omoda, and Jaecoo. However, charging infrastructure remains a significant concern for potential EV buyers in Vietnam.

Vo Minh Luc, BYD's executive director, noted that the company plans to collaborate with other enterprises for charging solutions rather than developing its own network.

"Customers can use portable chargers or wall-mounted 7kW units provided with the vehicle. However, this approach raises concerns among urban residents about charging convenience and availability, especially for long-distance travel," he said.

Nguyen Minh Dong, director of Duc Viet Technology Consulting, stressed that charging stations are the backbone of the EV industry.

“The development of a robust charging infrastructure is crucial for the growth of EVs,” he said.

In contrast, VinFast leads with 150,000 charging points nationwide and continues to invest heavily in expanding its network.

Despite previous announcements of a $250 million investment to build an EV assembly plant in Vietnam, BYD shifted its focus to Indonesia, Thailand, and Cambodia, importing vehicles into Vietnam. Liu noted that establishing a manufacturing plant in Vietnam would depend on long-term strategies and market conditions.

The expansion of Chinese EV manufacturers in Vietnam occurs amid global oversupply and new 100 per cent tariffs in the US on Chinese-made EVs. This competitive landscape is driven by BYD’s integrated supply chain, which lowers production costs, particularly for batteries, the most expensive EV component.

Meanwhile, the Vietnam Automobile Manufacturers' Association (VAMA) predicts that Chinese manufacturers will likely produce affordable EVs for the Vietnamese market. With government policies aimed at reducing fossil fuel vehicle production by 2040, the demand for EVs is expected to surge.

The VAMA also highlights the growing pressure on locally assembled vehicles due to rising imports. Following the elimination of import duties on ASEAN cars in 2018, many domestic products struggled to compete with imports from Thailand and Indonesia. This competition is expected to intensify post-2025, when import duties from the EU and UK drop to 30-35 per cent.

Nguyen Chi Sang, chairman of the Vietnam Association of Mechanical Industry said, "Companies like Hyundai Thanh Cong are already producing and assembling hybrids and EVs in Vietnam, such as the Ioniq5 and Santa Fe hybrid."

Sang also noted that maintaining current production levels is essential for continued investment in green vehicle production to offer consumers diverse options.

Source: Vietnam Investment Review