Vietnam’s Gen Z And Millennials Are Taking It Slow On The EV Highway

Quynh Vu, a 29-year-old digital marketing specialist who considers herself an environmentally conscious consumer, doesn’t place buying an electric vehicle (EV) at the top of her priority list. While mindful of her consumption choices, Quynh hesitates to fully embrace green mobility.

“I’ve grown up in the heart of Ho Chi Minh City,” she stated. “I’ve witnessed the increasing congestion on our streets, and although I’m contributing by owning a motorbike for my daily commute and my family’s cars, I wouldn’t choose an EV if I had the funds for a four-wheeler myself. I’d still opt for a brand new diesel car, not electric.”

When asked about her rationale, Quynh simply said, “I believe we’re not prepared for it, and we’re far from being ready.”

She mentioned that finding a gas station, whether in the city or the countryside, has never been an issue. But the thought of searching for a charging point during a road trip to Da Lat when the battery is running low is a whole different situation. Quynh stressed, “That’s something I’d rather not go through.”

Also read: From Trains To Planes, Vietnam Pledges Green Transport By 2050

Easing off the gas

Despite being seen as trendsetters, the young professionals in Vietnam are hitting the brakes on EVs, according to a recent study by Vero. Gen Z and Millennials, who are usually all about breaking boundaries, are taking a more cautious stance when it comes to embracing EVs. This interesting twist shows a different side to their usual enthusiasm for change and innovation.

Amidst the growing clamor for sustainability, the environmentally-conscious Gen Z and Millennials stand as champions of a greener future. Their desire to shrink carbon footprints and embrace eco-friendly choices is undeniable. However, the road to full electric vehicle (EV) ownership is not without its obstacles, particularly in the context of urban living and unique circumstances in Vietnam.

But watts driving this hesitation among Gen Z and Millennials when it comes to adopting EVs? (pun intended)

Vero’s mobility-focused brand consulting practice recently published an in-depth whitepaper that sheds light on two significant behavioral trends influencing this stance.

Firstly, the surge in popularity of ride-hailing services within Vietnam has reshaped the transportation landscape, like Tam’s, and some young consumers are already embracing electric vehicles for their daily commuting needs. This shift has made navigating city streets and even traveling between cities more convenient, reducing the urgency of owning a personal vehicle for this demographic. As ride-hailing services provide hassle-free options, the idea of car ownership, whether traditional or electric, becomes less appealing.

This is true for 20-year-old Tam Phan, an international student taking a gap year in Saigon. Unlike many locals, she doesn’t own a motorbike. Instead, she opts for Grab or VinFast taxis to navigate the city during her stay. “Maybe it’s because I’ve been away for a while, but city driving feels overwhelming, and booking a ride with my phone is much simpler,” she explains.

Tam’s perspective on vehicle ownership extends beyond her motorbike preference. Similar to Quynh, the idea of purchasing an electric vehicle (EV) hasn’t crossed her mind, at least for the time being. “As my time here is temporary and I’m not used to driving in this setting, getting an unfamiliar car just doesn’t fit into my plans,” she reflects.

The other factor is that the current economic situation strongly affects the buying decisions of these generations. In a country where the average income for respondents aged 18 to 34 hovers between VND10-25 million, the financial burden of car ownership becomes a pertinent concern. “It’s also worth noting that these young consumers are known to prefer experiences over possession, which explains why they prefer renting a car or using ride-hailing apps to owning one,” reads Vero’s whitepaper.

As Gen Z and Millennials champion sustainability, their journey towards full EV adoption reflects the intersection of ideals and real-world limitations that shape their mobility choices.

Navigating the charging challenge

For those committed to ecological well-being, EVs offer a compelling vision of zero tailpipe emissions and cleaner air. Short urban commutes align seamlessly with EV ranges, promising convenience. Yet, the promise faces real-world challenges in Vietnam’s developing charging infrastructure. And amid the growing interest in EVs in the country, a roadblock casts a shadow on the potential acceleration of EV adoption: the charging infrastructure gap.

While Vero’s survey reveals a surge of interest in EVs, a significant number of respondents have expressed a shared concern: the current scarcity of charging stations. The lack of accessible power sources, coupled with the anxiety of running out of power on longer journeys, has contributed to the hesitancy surrounding EV ownership.

This charging infrastructure gap is a common thread that ties together the cautious approach of not only Quynh but also nearly 90% of respondents who hesitate to embrace EVs. While the landscape of curiosity grows, the need for a robust charging network becomes increasingly apparent. Brands like VinFast, EBOOST, and Charge+ are already striving to address this issue by installing a network of charging stations across the country, aiming to alleviate range anxiety and pave the way for a smoother transition to electric mobility.

As the nation’s appetite for sustainable transportation expands, it’s evident that resolving the charging challenge is essential. Bridging this infrastructure gap will power up EV adoption and contribute to a cleaner, greener future on Vietnam’s roads.