Vietnam's opportunity in a shifting global EVs market
The global electric vehicle boom presents numerous opportunities for Vietnam's economy, supported by leading technology suppliers like Bühler Group.
Nearly 14 million battery-powered electric vehicles (EVs) were sold last year, marking a 35% increase from 2022, according to a report of the International Energy Agency (IEA).
This surge has brought the global tally of EVs in circulation to 40 million despite global economic and political instability and a generally sluggish automotive market.
EV sales will account for a half of all car sales by 2035, driven by evolving consumer preferences and government policies promoting the transition to green mobility, the IEA predicted.
The burgeoning potential of the EV market is a catalyst for the industry's expansion, attracting both established players and promising newcomers, namely Chinese automaker BYD commanding 20% of the global EV market, Tesla – the world's most valuable automotive company, and VinFast – Vietnam's first EV manufacturer.
Traditional automakers are also pivoting toward electrification. German luxury carmaker Audi announced in late 2022 that it would cease production of internal combustion engine vehicles by 2029 to focus exclusively on EVs.
Meanwhile, South Korea's Hyundai plans to invest nearly $42 billion in EV production, aiming to manufacture over 1.5 million EVs annually and rank among the top three global EV makers by 2030.
New demands, new challenges
Major automakers' active participation has steadily advanced technology, lowered production costs, and made EVs more accessible to diverse consumer segments.
However, this shift has posed challenges for suppliers and original equipment manufacturers (OEMs).
Sharing with local media, an automotive industry expert said that while EVs require fewer components than internal combustion engine vehicles, their production involves unique challenges that compel OEMs to revise their strategies.

Rafael Diem, head of advanced materials in Southeast Asia at Bühler Group, introduces effective support technologies for EV production at GEFE 2024. Photo courtesy of Tuyen Phan.
For instance, EVs typically weigh significantly more than gasoline-powered cars due to large battery packs. This necessitates enhancing tire load capacity and reducing the weight of other components while maintaining structural durability, particularly in the chassis.
Additionally, critical components like batteries, charging systems, power converters, and electronic control units are not traditionally supplied by conventional automotive parts manufacturers.
The EV industry also levels the playing field for new entrants, challenging century-old automakers. Similarly, the component supply chain may see a shift, as conventional OEMs struggle to pivot from producing internal combustion engine parts to EV components - especially given the continued profitability of gasoline-powered vehicles, according to EV Quotient.
This opens opportunities for new players to fill gaps in the green transportation supply chain.
Vietnam's position in EV manufacturing
Vietnam's EV industry is taking shape, led by VinFast, a subsidiary of Vingroup. After phasing out gasoline-powered vehicles in early 2022, VinFast has launched multiple EV models across various segments while developing a network of public charging stations to stimulate consumer demand.
In addition to VinFast, automakers like Audi, Mercedes-Benz, and BYD are distributing EVs in Vietnam, though these vehicles are mostly imported or assembled locally.

Some car parts are cast using Bühler's Carat Die Casting. Photo courtesy of Bühler.
The EV components industry in Vietnam is also gaining momentum. According to Dinh Nguyen Uyen Nhung, head of sales at Bühler Vietnam, many of Bühler’s clients in Vietnam – foreign investors from Taiwan, South Korea, and Germany – manufacture parts and equipment for global EV makers.
Bühler’s solutions, such as high-pressure aluminum die casting, enable the production of lightweight aluminum components for EVs, significantly reducing vehicle weight.
For instance, an aluminum chassis weighs approximately 54 kilograms, compared to 368 kilograms for a steel equivalent, Bühler Southeast Asia director advanced materials Rafael Diem explained.
Bühler also offers advanced wet grinding solutions to reduce particle size from 100 micrometers to nanometer scales, with energy consumption less than 50% of conventional technologies. This is vital for producing high-performance lithium-ion batteries and specialized body coatings for EVs.
Moreover, Bühler plans to introduce vacuum thin-film coating technology, critical for semiconductor and sensor production, to Vietnam. Diem highlighted this as a core technology for developing autonomous EVs, the next frontier in automotive innovation.
Bühler supports EV OEMs, including new market entrants, throughout the production process, from designing manufacturing lines to providing equipment and installation guidance. Its engineers and technology experts remain involved until products meet initial design specifications and offer lifetime support for its solutions.
“Not only foreign-invested enterprises but also Vietnamese companies, with Bühler’s advanced technologies and technical support, can participate in the global EV supply chain,” Nhung affirmed.
With operations in over 140 countries, Bühler has the expertise to deploy international engineers to assist its Vietnamese clients. Simultaneously, Bühler is investing in local talent, training engineers in design, automation, technology, and project management.
“The local workforce we train will be a crucial addition to Vietnam’s growing EV supply chain,” Diem added.
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