There’s a long way to go, but the country has most of the ingredients it needs to be a significant player in global EV supply chains.
Vietnam has one of the fastest growing middle classes in Southeast Asia, with a recent McKinsey report estimating that more than 36 million people could join Vietnam’s consuming class by 2030.
This growing middle class, along with the associated increase in its consumption capabilities, is just one facet driving Vietnam’s strong economic expansion, with the country’s GDP forecast to increase from $327 billion in 2022 to $470 billion by 2025.
One of Vietnam’s growing economic sectors is its electric vehicle (EV) industry, focusing on domestic and international manufacturing, infrastructure, and supply chain elements specific to EVs. Vietnam’s increasingly important role in both the production and consumption of EVs will soon make it one of the world’s most dynamic EV markets, potentially disrupting China’s current dominance of the EV ecosystem on both levels.
Vietnam’s Growing Importance in the EV Supply Chain
Manufacturing has contributed significantly to Vietnam’s recent economic growth, with the manufacturing sector accounting for nearly 25 percent of the country’s total GDP in 2021.
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