“The factory in the central province of Ha Tinh will annually produce 30 million LFP battery cells.” Production is expected to start towards the end of 2023.“Prices of E2Ws equipped with lithium-ion batteries are much higher than those equipped with lead-acid batteries,” ICCT writes. “However, E2Ws powered by lithium-ion batteries have a longer lifespan, and are lighter, than E2Ws powered by lead-acid batteries, and their batteries are replaced less frequently.
Batteries, controllers, and electric motors still need to be imported, but it is believed that there is a capacity to produce these locally. Vietnamese enterprises such as Pinaco and 365 Creative Joint Stock Company have the potential to produce batteries for E2Ws. Motors are currently imported from Bosch or Chinese and Taiwanese manufacturers.
There is government support for the introduction of electric cars: such as reducing the special consumption tax and elimination of registration fees. But there is no policy support for E2Ws. They are still subject to the same taxes and fees as ICE two-wheelers. Safety concerns, range, and price are the top 3 reasons given for not buying an E2W in Vietnam.
Manufacturers need to be incentivized to produce affordable, quality electric 2-wheelers. Tightened emission standards would play a role, as would mandating E2W production targets. Thailand and Indonesia have set targets for EVs. For example, Indonesia aims to achieve a stock of 2 million electric passenger vehicles and 13 million E2Ws by 2030.