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

This working paper evaluates the costs and benefits of implementing financial incentives, such as purchase subsidies and registration rebates, to increase electric vehicle (EV) adoption in Ho Chi Minh City.

• The implementation of financial incentives for electric vehicles in Ho Chi Minh City is projected to yield net-positive benefits during the early stages of adoption. Over an eight-year period, the benefit-cost ratio is estimated at 1.86 with a 2 percent discount rate and 1.69 with a 6 percent discount rate, resulting in a net present value (NPV) of $275 million and $190 million, respectively.
• On an individual vehicle basis, an EV in Ho Chi Minh City may 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 internal combustion engine (ICE) vehicle use in Ho Chi Minh City requires incentives that make EVs more cost-competitive and support for the deployment of charging stations. Effective implementation requires local officials to consider budget feasibility and necessitates linkage between national and local policies, as national government can provide financial support for subnational 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} }