Vietnam Battery market is
predicted to proliferate during the forecast period 2024-2028F, owing to various
driving factors such as rising demand for continuous electricity, increasing
investment in renewable energy, and union government’s focus on increasing EVs
vehicles adoption as compared to petrol & diesel vehicles, among others.
A
battery is a device that transforms chemical energy directly into electrical
energy via an electrochemical oxidation-reduction reaction. This kind of reaction
involves the transfer of electrons from one material to an alternative with the
help of an electrical circuit. These batteries are charged with the help of
electric current. Batteries are divided into various types, for instance,
lead-acid batteries, lithium-ion batteries, nickel-metal hydride batteries,
nickel-cadmium batteries, nickel–zinc batteries, flow batteries, among others.
Also, multiple electrochemical cells that are connected to external inputs and
outputs are used to make batteries for their clients. There exist multi-fold
opportunities and future battery technologies across several sectors at a
global scale.
There
is a growing requirement for energy backup due to the rising demand for
uninterrupted power supply across the region. In power outages, batteries serve
as a backup power source. The rechargeable and scalability feature of the
batteries are the two major advantages. The need for a reliable supply has
increased, necessitating a growing need for energy backup across the countries.
Batteries are provided as a backup power source during power interruptions or
periods of heavy demand. The extended operating life and low maintenance needs
of batteries are further advantages which are directly impacting the market of
battery across the nation. The development of renewable energy sources such as
solar and wind have rising demand for batteries, which is likely to propel the
market of battery business across the country. Several developed and emerging
countries have established green energy objectives. Therefore, this trend is
anticipated to continue across the country. Batteries are generally used for
energy storage by utility companies. This serves as a market driver for the
India battery market, coupled with the additional benefits of longer operation
time and longer life.
Especially
in the electric two-wheeler (E2W) market, Vietnam has the potential to become
the leader in EV demand and EV production, in the Association of Southeast
Asian Nations (ASEAN). Vietnam’s electric two-wheeler market is the second
largest in the world after China’s. Thus, the market for electric passenger
cars (EPVs) is increasing significantly. In Vietnam, local manufacturers
dominate the EPV and E2W markets. However, more measures are needed for the
country to fully realize its capacity in the Electrical Vehicle (EV) market and
EV production. This current EV production and its supply chain, EV demand, and
EV charging infrastructure are likely to rise the demand for battery across the
country. Accelerating electric vehicle expansion not only contributes to
achieving the country’s climate goals, reducing GHG emissions, and improving
air quality, but also supports the country’s economic improvement.
In July 2022, Vietnamese government decided to approve
the action program on green energy transition and reducing carbon & methane
emissions in the transport sector, which is the objective to achieve net-zero
emissions in the transport sector by the end of 2050. The outcome sets specific
national objectives related to encouraging electric vehicle development,
including:
- In
the first period, from 2022 to 2030, Vietnam government is expected to promote
the production, assembly, import, and employ of electric vehicles (EVs),
and develop charging infrastructure.
- In
the second period, from 2031 to 2050, the production and import of
fossil-fueled cars, motorcycles, and mopeds will be directed for domestic
use till 2050. Additionally, demanding that 100% of road motorized automobiles
be powered by electric & green energy, and rising charging
infrastructure system across the country by the end of 2040.
National Policy In the Country
Reduce Excise Tax on Electric Cars - To
encourage the production and consumption of environmentally friendly products,
the current Law on Special Consumption Tax (SCT) stipulates that electric cars
have a lower tax rate than combustion engine cars. Specifically, the excise tax
rate for cars with internal combustion engines ranges from 15 to 150%,
depending on the vehicle model and cylinder capacity. For hybrid electric
vehicles (HEV, PHEV), and bioenergy vehicles, while the proportion of using
gasoline energy does not exceed 70%, the excise tax rate shall be equal to 70%
of the tax rate applicable to gasoline and diesel vehicles of the same cylinder
capacity. Particularly for “pure” electric cars (BEV, FCEV) with 9 seats or
less, the excise tax rate is 15%, 10% from 10 to under 16 seats, and 5% from 16
to 24 seats.
In January 2022, the 15th National Assembly approved a
law, in which the excise tax rate for electric cars was reduced to 1 – 3% and 4
– 11%.
Similarly, preferential import tax on components,
enterprises entitled to SCT reduction incentives must also meet the minimum
output requirement of 250 units per year, which is applicable to passenger cars
of 9 seats or less, trucks, minibuses among others.
Reduced
Registration Fee for Electric Cars - On
January 15, 2022, the Vietnam government issued stipulation of the registration
fee rate of 0% for battery electric cars registered for the first time after
three years from 1st March 2022. In the upcoming years, this fee is
expected to be equal to 50% of that of petrol and diesel cars with a similar
number of seats. Furthermore, for vehicles registered for the second time, the
registration fee for the whole country is 2%, relevant to electric and internal
combustion engine vehicles.
However,
the reduced registration fee for electric car policy also makes many hybrid car
manufacturers “feel” disadvantaged. In August 2022, the Vietnam Automobile
Manufacturers Association (VAMA) requested the Vietnam government to consider
reducing the registration fee for hybrid cars such as HEV, and PHEV despite it
not being approved so far.
Challenges: Limited Raw Materials
Available In The Country
Key materials in vehicle batteries are nickel and
lithium, and Vietnam is potentially a source of nickel and lithium. Vietnam’s
total nickel and lithium reserves are estimated at 3.6 million tons and 1
million tons respectively. However, the research, experience, and technology
needed to exploit these minerals in Vietnam are still very limited. Until 2022,
there was only one company studying the feasibility of nickel extraction in Son
La province, Ban Phuc Nickel Mine, Ltd. Ninety percent of this company’s shares
are owned by Blackstone Minerals, an Australian company, and 10% are owned by
Son La Engineering and Mechanical Joint Stock company. Therefore, above
mentioned factors are likely to hinder the market growth of battery in the
upcoming years.
Recent
Development:
- In
March 2021, VinFast, an automotive subsidiary established
by Vietnam’s one of the largest private group named “Vingroup” and the
first local automotive brand in Vietnam, announced the signing of a
memorandum of cooperation (MOU) with the solid-state battery company
Huineng Technology.
- As of
2020, the Vietnam government installed rooftop solar PV capacity reached
9,296 MW with 101,029 installations. Battery storage is a necessary part
of the solar rooftop power generation process, as solar energy is
intermittent and unavailable during the night. Lithium-ion battery-based
solar home systems are expected to increase in Vietnam, increasing the
demand for stationary batteries across the nation.
Market
Segmentation
The Vietnam Battery
market is segmented into type, chemistry, applications and region. Based on
type, the market is divided into primary battery and secondary battery. Based
on chemistry, the market is divided into lithium-ion, lead-acid, zinc-manganese
dioxide, nickel-metal hydride, and others. Based on application, the market is
automotive, industrial, and portable. The market analysis also studies the
regional segmentation to devise regional market segmentation, divided among Northern Vietnam, Central Vietnam, and Southern
Vietnam.
Company Profiles
Vision Group, Leoch International Technology
Limited, PINACO, Saite Power Source (Vietnam) Co. Ltd, Heng Li (Vietnam)
Battery Technology Co. Ltd, Ritar Power (Vietnam) Company Limited, TIA Sang
Battery Joint Stock Company, GS Battery Vietnam Co. Ltd, Eni- Florence Vietnam
Co. Ltd, Kung Long Batteries Industrial Co. Ltd., among others, are the major
players that are driving the growth of the Vietnam battery market.
Download Free Sample Report
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Attribute
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Details
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Base Year
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2022
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Historical Years
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2018 –
2021
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Estimated Year
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2023
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Forecast Period
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2024 – 2028
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Quantitative Units
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Revenue in USD Billion and CAGR for 2018-2022 and 2024-2028
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Report Coverage
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Revenue
forecast, company share, competitive landscape, growth factors, and trends
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Segments Covered
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Type
Chemistry
Application
Region
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Regional Scope
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Northern
Vietnam, Central Vietnam, Southern Vietnam
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Key Companies Profiled
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Vision Group, Leoch International Technology Limited, PINACO,
Saite Power Source (Vietnam) Co. Ltd, Heng Li (Vietnam) Battery Technology
Co. Ltd, Ritar Power (Vietnam) Company Limited, TIA Sang Battery Joint Stock
Company, GS Battery Vietnam Co. Ltd, Eni- Florence Vietnam Co. Ltd, Kung Long
Batteries Industrial Co. Ltd
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Customization Scope
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10% free
report customization with purchase. Addition or alteration to country,
regional & segment scope.
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Avail of customized purchase options to meet your exact
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Delivery Format
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PDF and Excel through Email (We can also provide the editable
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Report
Scope:
In this
report, the Vietnam battery market has been segmented into the following
categories, in addition to the industry trends which have also been detailed
below:
- Vietnam Battery
Market, By Type:
- Primary
Battery
- Secondary
Battery
- Vietnam Battery
Market, By Chemistry:
- Lithium-Ion
- Lead-Acid
- Zinc-Manganese Dioxide
- Nickel-Metal Hydride
- Others
- Vietnam Battery
Market, By Application:
- Automotive
- Industrial
- Portable
- Vietnam Battery
Market,
By Region:
- Northern Vietnam,
- Central Vietnam,
- Southern Vietnam
Competitive
Landscape
Company
Profiles: Detailed
analysis of the major companies present in the Vietnam Battery market.
Available
Customizations:
With
the given market data, TechSci Research offers customizations according to a
company’s specific needs. The following customization options are available for
the report:
Company
Information
- Detailed analysis and profiling of
additional market players (up to five).
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