VinFast is a Vietnamese automotive company that produces EVs for the domestic and international markets and is a subsidiary of the Vingroup Joint Stock Company, the largest listed company in Vietnam. It sought financing from the ADB to support its operations and expansion into the manufacturing of electric buses and the development of a nation-wide EV charging network. DNV drew on its longstanding technical advisory, qualification, and verification experience to help ADB assess the opportunities and challenges of the EV market and assess VinFast, resulting in an objective evaluation and independent assessment of the company.
“It was a pleasure to work with the ADB to provide in-depth independent technical knowledge to support this transaction” said James Lam, Electric Vehicle Lead and Project Manager, DNV. “The rise of EV manufacturers from around the world shows the extent of potential innovation in the space and is an exciting sign of a developing market.”
In the latest edition of its Energy Transition Outlook (ETO), DNV estimates that the battery electric passenger vehicle market will grow from a total of 12.7 million EVs in 2022, to about 193 million in 2030. Between 2021 and 2030, a compounded annual growth rate (CAGR) of 36 percent is expected.
While EVs have been gaining momentum worldwide as a result of the push for zero-emission transport, interest has increasingly shifted towards electrifying public transportation systems. Greening public transport offers a higher reduction in fossil fuel consumption and has a larger and more immediate impact on greenhouse gas emission cuts. Switching from diesel to electric buses also improves air quality, reduces noise pollution, and lowers operational and running costs.
With an urbanization rate of around 3 percent per year and a transport sector accounting for 18 percent of the country’s annual greenhouse gas emissions, Vietnam is looking to transition to a zero-emission transport system running on mostly carbon-free electricity. The growth of the country’s middle class is opening up an opportunity for the uptake of the electric passenger vehicle market.
“As the financial community ventures into new technologies and asset classes to support the world’s net-zero ambitions, independent project assessments will be critical to better manage uncertainty and risk” added Brice Le Gallo, Vice President and Regional Director-Asia Pacific, Energy Systems at DNV. “DNV is pleased to assist the ADB in their goal of combating climate change and supporting low-carbon transport projects. By harnessing sustainable technologies and new kinds of public-private partnerships, we can hasten the energy transition while also supporting the growth of new high-tech industries.”
With over 16.5 GW of solar PV and 4 GW of wind power capacity installed since 2018, and a target of 50 GW of renewables by 2030, Vietnam is leading the charge in Southeast Asia’s transition to clean energy.
At the recently concluded COP 27 conference, the country renewed its 2016 call on the G7 and multilateral organisations to support the transfer of advanced wind and solar technologies and assist ASEAN nations in improving their capacity to adapt to climate change, ensuring a just transition.
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