Publication: Taking Stock, March 2025: Electrifying Journeys: E-mobility Transition in Viet Nam
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2025-03-12
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2025-03-12
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Viet Nam’s real GDP growth reached 7.1 percent in 2024, driven by a strong rebound in exports, outpacing most regional peers. External demand strongly rebounded in 2024 after a contraction in 2023. Final consumption and investment growth also accelerated in 2024 reaching 6.6 and 7.2 percent, respectively, supporting the growth momentum. However, private consumption remained a moderate driver of aggregate demand relative to the region (54 percent of GDP compared to a median of 61.7 percent, respectively) as household savings increased amid heightened uncertainty in recent years. Viet Nam’s GDP growth is forecast to moderate to 6.8 percent in 2025 before settling at 6.5 percent in 2026. The rebound in exports in 2024 is expected to ease in 2025 and further into 2026 due to projected economic slowdown in China and the United States in the near-team - Viet Nam’s largest trade partners – and uncertain global trade prospects from shifts in trade policy. Domestic activities and services are expected to continue to firm up in 2025 and into 2026 as the real estate market recovery gathers steam. The outlook for Viet Nam remains positive but with heightened uncertainties. Given Viet Nam’s openness to the global economy, the main uncertainty stems from slower-than-expected global growth and trade disruptions, particularly among major trading partners such as the United States, European Union, and China. Such developments, including heightened uncertainties from trade policy shifts and deepening trade fragmentation, could impact Viet Nam’s manufacturing exports, industrial production, and growth. On the other hand, increased public investment could further support demand and contribute to growth. An accelerated recovery in the real estate market thanks to faster project clearance could further boost domestic demand. The special focus of this edition focuses on preparing e-mobility transition in the transport sector. This analysis examines the critical steps required to decarbonize road transportation in Vietnam by using electric vehicles and rolling out a network of public charging stations. It explores the implications of this transition on electricity demand, greenhouse gas emissions, and job creation. The report presents a set of recommendations to achieve the Government’s ambitious target of having 50 percent of urban vehicles and 100 percent of urban buses and taxis powered by electricity or green energy by 2030, and subsequently reaching 100 percent for all road vehicles by 2050.
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“World Bank. 2025. Taking Stock, March 2025: Electrifying Journeys: E-mobility Transition in Viet Nam. © World Bank. http://hdl.handle.net/10986/42931 License: CC BY-NC 3.0 IGO.”
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