The Future of Sustainable Vehicles in Vietnam

Published 04/24/2025 in Scholar Travel Stipend

Written by Brandon Quach | 04/24/2025

VinGroup is a multi-sector conglomerate and the wealthiest company in Vietnam. Its most recent venture is VinFast, a fully electric vehicle (EV) company—and the first mainstream automotive manufacturer founded in Southeast Asia to compete with major global EV brands. I traveled to Vietnam to learn more about VinFast’s rapid rise and to investigate whether its pledge to promote a more sustainable energy ecosystem holds up in practice.

The Future of Sustainable Vehicles in Vietnam

VinGroup is a multi-sector conglomerate and the wealthiest company in Vietnam. Its most recent venture is VinFast, a fully electric vehicle (EV) company—and the first mainstream automotive manufacturer founded in Southeast Asia to compete with major global EV brands. I traveled to Vietnam to learn more about VinFast’s rapid rise and to investigate whether its pledge to promote a more sustainable energy ecosystem holds up in practice.

VinFast’s Climate Pledge:

“Due to their many environmental advantages, electric vehicles are an essential part of the global effort to promote sustainable practices and fight climate change. In order to fully realize the potential of electric vehicles and usher in a new era of sustainable mobility, VinFast is adamant that governments, corporations, and individuals must continue to promote the growth and adoption of these vehicles.”

The vibrant turquoise VinFast Model VF8 populated the crowded streets of Ho Chi Minh City (HCMC), accompanied by an equally prevalent motorcycle model. I asked my Grab—Vietnam’s equivalent of Uber—driver about the sheer amount of EVs and why they were all the same color. He explained how the VinFast group began a taxi service that uses new models of the car and motorcycle for self-funded advertisements.

Beyond the marketing strategy, I learned there were two major factors behind VinFast's rise—the first were the protective ‘luxury goods’ tariffs that strangled the import of all automobiles outside of Vietnam and trade-friendly countries. VinFast bypassed these tariffs, which made their mid to high priced vehicles a bargain for car owners in Vietnam. Most Vietnamese people drive dated gasoline-powered motorcycles, which are subject to a lower tariff rate, but now have the option of the VinFast Klara 2 electric bike. In addition to tariffs, high fuel costs were a major driver of EV adoption. After conversion from Vietnam Dong per liter to USD per gallon—a sum of approximately $6 per gallon in 2025. Gas prices in HCMC are greater than what New Yorkers would pay—but in a country where the average salary is only $400 a month. Hence, it is clear why there is an enthusiastic move away from gasoline.

Electric Vehicles and the Future of Sustainability

At face value, it looks promising to see how electric vehicles—which have been deemed the pinnacle of sustainability for years—are thriving in developing nations. But there are several debates on how “green” full-electric cars even are. The race between gasoline, hybrid, and full-electric car fans continues to be a point of contention between sustainability groups. (Gasoline proponents say driving used vehicles is more sustainable than green alternatives). Toyota released an internal analysis suggesting that the materials required to build ninety hybrids or six plug-in hybrids equal one EV. For the hybrid proponents, climate-conscious consumers are better off simply ditching EVs and pushing hybrids to more consumers. While it is difficult to say, this nuance is often lost in the marketing by EV companies and enthusiasts.

Another crucial element for EV viability is a reliable charging grid, which makes both long-distance travel and daily driving feasible. In my day-to-day commutes around HCMC, charging stations were virtually nonexistent—I only spotted one during my entire visit, tucked beneath an upscale hotel. The massive infrastructure effort that allowed Tesla to install Superchargers across the U.S. remains out of reach in Vietnam, where densely packed streets and outdated electrical systems pose serious challenges. Integrating a widespread charging network into such a city would require monumental planning and investment. That is why it feels disingenuous to claim that EVs have truly entered the Vietnamese market—even while it may seem so at first glance. Their visibility stems almost entirely from VinGroup’s taxi fleet, not from widespread consumer adoption—a far cry from the Tesla (EV) boom in the U.S.

Looking deeper into energy production, Vietnam—like many other South East Asian countries—relies heavily on fossil fuels in order to generate electricity. Since production is determined by the socialist government, prices are set low and require the cheapest methods of energy production to meet quotas. At 8.2 cent per kWh (US average is 17.9 cents), the abundant coal reserves keep the price artificially down and make up roughly 80 percent of the country’s energy mix (World Population Review). This raises the critical question: is it more sustainable to burn gasoline directly in a vehicle’s engine, or to burn fossil fuels in a power plant just to deliver that energy to an electric car? The answer is still ambiguous.

VinFast’s Sustainable Pledge

Now looking into VinFast’s parent company, it becomes clear that its sustainability image may be more illusion than reality. The first image on its website shows a sleek electric minivan gliding through lush forests and pristine waters—a visual pitch for green innovation. But these marketing tactics are primarily economically driven, much like the National Environmental Award granted to VinPearl, VinGroup’s vacation resort division. VinPearl has faced multiple allegations of environmental dumping and safety negligence—issues that have gone largely unaddressed, often suppressed in a system plagued by government corruption. Many critics now question how a corporation that obscures critical environmental harm can credibly market its EVs as a sustainable choice.

Milken Institute’s Commitment to Sustainability

The Milken Institute’s emphasis on building a more sustainable and meaningful future reflects the broader momentum behind the global sustainability movement—one that, in recent years, has been symbolized by the rise of fully electric vehicles. But the blind craze surrounding EVs has sparked an essential debate: how sustainable are these vehicles when viewed beyond the marketing? Vietnam offers a case study, where VinGroup—the country’s most wealthy conglomerate—has captured the domestic and Southeast Asian auto market with EVs that may not be as “green” as advertised. Meanwhile, in the U.S., government incentives such as EV tax credits can sometimes create a false sense of environmental virtue for individual consumers or fix a mindset that EVs are automatically good. As sustainability becomes more urgent and more marketable, it’s critical to look past corporate messaging and assess the systems behind the solutions. The path forward requires more than just new technology—it requires honest companies, informed consumers, and conscious choices.

Works Cited

Vinfast Auto US. “Investigating the Environmental Advantages of VinFast Electric Vehicles.” VinFast Global Community, https://community.vinfastauto.us/vinfast-brand/investigating-the-environmental-advantag es-of-electric-vehicles-using-vinfast/. Accessed 2 April 2025.

World Population Review. “Cost of Electricity by Country 2025.” World Population Review, 2025, https://worldpopulationreview.com/country-rankings/cost-of-electricity-by-country. Accessed 2 April 2025.