Changing the Demand Preference for Electric Vehicles in Ho Chi Minh City: Costs and Benefits From Incentives in the Early Stages of Adoption

The analysis finds that financial incentives and charging station deployment would yield net-positive benefits in Ho Chi Minh City during early EV adoption, with a benefit-cost ratio between 1.69 and 1.86 over eight years.

• Implementing financial incentives for electric vehicles (EVs) in Ho Chi Minh City (HCMC), specifically purchase subsidies and registration rebates, is projected to deliver net-positive benefits during the early stages of adoption. Over an eight-year period, the benefit-cost ratio is estimated at 1.86 (discounted at 2 percent) and 1.69 (discounted at 6 percent), representing a net present value (NPV) of $275 million and $190 million respectively.
• On an individual vehicle basis, each EV is estimated to generate annual net benefits of approximately $76 (1.7 million VND) using a 2 percent discount rate, or $65 (1.4 million VND) using a 6 percent discount rate.
• Increasing EV adoption and deterring the use of internal combustion engine (ICE) vehicles in HCMC requires a combination of incentives to improve cost-competitiveness and support for the deployment of charging stations.
• Effective local incentive design requires budget feasibility assessments and coordination with higher government levels, as national policy can provide the necessary financial support to subnational governments for demand-based incentives.

APA

World Resources Institute (n.d.). Changing the Demand Preference for Electric Vehicles in Ho Chi Minh City: Costs and Benefits From Incentives in the Early Stages of Adoption. https://www.wri.org/research/changing-demand-preference-electric-vehicles-ho-chi-minh-city-costs-and-benefits

Chicago

World Resources Institute. Changing the Demand Preference for Electric Vehicles in Ho Chi Minh City: Costs and Benefits From Incentives in the Early Stages of Adoption. n.d. https://www.wri.org/research/changing-demand-preference-electric-vehicles-ho-chi-minh-city-costs-and-benefits.

Wikipedia

{{cite report |author=World Resources Institute |title=Changing the Demand Preference for Electric Vehicles in Ho Chi Minh City: Costs and Benefits From Incentives in the Early Stages of Adoption |url=https://www.wri.org/research/changing-demand-preference-electric-vehicles-ho-chi-minh-city-costs-and-benefits |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitutendchanging, author = {{World Resources Institute}}, title = {{Changing the Demand Preference for Electric Vehicles in Ho Chi Minh City: Costs and Benefits From Incentives in the Early Stages of Adoption}}, institution = {World Resources Institute}, url = {https://www.wri.org/research/changing-demand-preference-electric-vehicles-ho-chi-minh-city-costs-and-benefits}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }