Vietnam Electric Bus Market By Propulsion Type, By Range, By Battery Capacity, By End Use, By Region, By Competition, Opportunities and Forecast, 2020-2030F

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.

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.

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.

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:

• BEV
• PHEV
• FCEV

Vietnam Electric Bus Market, By Range:

• Less than 200 miles
• More than 200 miles

Vietnam Electric Bus Market, By Battery Capacity:

• Upto 400 kWh
• Above 400 kWh

Vietnam Electric Bus Market, By End Use:

• Public
• Private

Vietnam Electric Bus Market, By Region:

• Northern
• Southern
• 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).