Promising Prospects for Smart Mobility Industry in Vietnam

9:54:10 AM | 11/29/2023

In the global pursuit of reducing carbon emissions, the smart transportation sector has emerged as a focal point for innovation and growth. Vietnam is actively participating in the mobility revolution, witnessing a substantial rise in electric vehicles (EVs) and intelligent transportation systems (ITS).

Urban Traffic Management Center of Ho Chi Minh City

During the recent "Connecting the Smart Mobility Industry" conference in Hanoi, Mr. Tran Kien, Deputy General Director of Advantech Vietnam Co., Ltd, highlighted the remarkable progress and advantages characterizing the smart mobility market in Vietnam.

Vietnam boasts abundant human resources and a sizable population, facilitating the testing and implementation of smart mobility solutions. The country has experienced significant growth in EVs, both in the personal and public transport sectors, accompanied by the emergence of smart traffic monitoring systems. While still in its early stages, this development presents ample opportunities for growth and innovation in the realm of smart mobility.

The Vietnam Automobile Manufacturers Association (VAMA) anticipated a surge to 1 million electric vehicles (EVs) by 2028, with rapid growth projected in the 2030-2040 period. By 2040, Vietnam is expected to host 3.5 million electric cars. With the increasing popularity of EVs and smart transportation systems, Vietnam is positioning itself as a promising market in this domain.

Moreover, Vietnam has committed to addressing global climate change by reducing CO2 emissions from vehicles. This commitment underscores the urgency of transitioning to cleaner transportation options, including electric vehicles, public transport, and car-sharing services. The development of EV charging infrastructure is a significant aspect of Vietnam's smart mobility revolution.

Mr. Tran Kien emphasized, "The unwavering determination of the Government, businesses, and the public is propelling the smart mobility industry in Vietnam. I believe this industry holds a bright future, contributing to CO2 reduction and establishing a sustainable mobility system."

According to Mr. Tony Meng, General Director of Delta Electronics in Vietnam, the smart mobility industry in Vietnam is poised for continued robust growth due to government support, heightened environmental awareness, and a rising demand for convenient and sustainable mobility solutions.

However, Mr. Meng cautioned about challenges such as the high cost of electric vehicles, safety concerns, charging infrastructure, and power grid distribution capacity planning. Addressing these challenges requires innovative solutions to ensure sustainable development.

"Safety and quality are top priorities. Building a reliable and robust solution for long-term business development requires each charging station to obtain international/national safety certification and approval from power authorities," added Mr. Meng.

To capitalize on the positive trajectory of this industry, Mr. Tran Kien stressed the importance for businesses to prepare, invest significantly in research and development (R&D), seek collaborative opportunities with government agencies and industry peers, and commit to ensuring quality and security.

The optimistic development and future prospects of the smart mobility industry in Vietnam not only promise economic benefits but also contribute positively to global environmental protection and sustainable development goals.

By Giang Tu, Vietnam Business Forum