Changing the demand preference for electric vehicles in Ho Chi Minh City: costs and benefits from incentives in the early stages of adoption

This paper evaluates potential costs of implementing financial incentives for electric vehicles (EVs); specifically purchase subsidies and registration rebates offered in HCMC and the benefits related to individual savings and GHG emissions reductions. The analysis indicates that implementation could deliver net-positive benefits during the early stages of EV adoption in HCMC. Overall, the analysis shows that incentives to make EVs more cost-competitive, along with support for the deployment of charging stations, will be crucial for increasing EV adoption in HCMC. Some of the key findings of the study includes Electric mobility is a key strategy to mitigate greenhouse gas (GHG) emissions and generate individual and social benefits, especially in large cities like Ho Chi Minh City (HCMC). The study show analysis and evidence from leading EV markets show that incentives to make EVs more cost-competitive, along with support for the deployment of charging stations, will be crucial for deterring the use of ICE vehicles and increasing the purchase or use of EVs in HCMC. Analysis indicates that implementation could deliver net positive benefits during the early stages of EV adoption in HCMC, with a benefit-cost ratio estimated at 1.86 (discounted at 2 percent) and 1.69 (discounted at 6 percent) over a period of eight years, which is equal to a net present value (NPV) of $275 million (discounted at 2 percent) and $190 million (discounted at 6 percent).