Major shifts taking place in electric vehicle adoption

Vietnam’s rising electric vehicle adoption is driving expansion and investment activities among both local and foreign players.

- By Van Bui

Last week, HSBC announced a $4 billion credit facility in China to facilitate electric vehicle (EV) and clean energy companies expanding to Vietnam and regional markets.

The sustainability and transition credit facility will offer financing to eligible mainland China businesses across sectors including clean power, electrification of transport, data centres, and AI. Among them, Vietnam’s EV sales penetration reached approximately 40 per cent — one of the highest in ASEAN and among the fastest adoption rates globally.

Tim Evans, CEO and head of Banking at HSBC Vietnam, said the clean energy transition is happening at pace and at scale.

“The country’s rapid EV adoption, its ambitious power development targets, and its growing openness to sophisticated foreign investment make it a compelling destination for Chinese clean energy companies looking to expand internationally. HSBC is uniquely positioned to support that flow of capital and technology, and this facility strengthens our ability to support this important trend,” Evans said.

Also reported last month, Chinese automobile brand Omoda & Jaecoo was on track to put a factory in Hung Yen province into operation this year. The factory is being developed through a joint venture between Vietnam’s Geleximco and Chery, the parent company of Omoda & Jaecoo.