Vietnam plans electricity subsidies for EV charging stations By Reuters

HANOI (Reuters) – Vietnam plans to subsidize electricity prices for electric vehicle (EV) charging stations as part of its efforts to promote the use of electric vehicles and meet its energy transition commitments.

The subsidy scheme is to be submitted to the central government by mid-September for approval, the government said in a statement over the weekend.

The Southeast Asian country, home to electric vehicle maker VinFast (NASDAQ: ), is aiming for carbon neutrality by 2050, in line with a commitment made by advanced economies.

The country currently has just over 150,000 EV charging ports, most of which are owned and operated by VinFast.

“The transition to green energy is an essential and important task in achieving green development goals and fulfilling Vietnam’s international commitments,” the government said in the statement.

The government will also work on incentives for the production and import of electric vehicles and for users to switch from internal combustion engine cars to electric vehicles, according to the statement.

The statement said Vietnam will ensure all urban areas have public electric vehicle charging systems, adding that a unified set of technical standards for these stations is to be issued by the end of this month.

The country has previously launched policies to exempt registration fees and reduce special consumption taxes for new electric vehicles.