Vietnam Battery Market Reaches Structural Inflection Point as PDP8 Mandates, EV Growth, and BESS Investments Accelerate Through 2030

Vietnam Battery Market Enters a Structural Growth Phase Driven by Electrification, PDP8 Policy, and Energy Transition Investment -

Vietnam's battery market is undergoing a fundamental transformation - evolving from a traditional lead-acid dominated ecosystem into a diversified, technology-driven energy storage market. According to Makreo Research's latest syndicated study, Vietnam Battery Market Size and Forecast (2021-2030), the market reached USD 508.43 million in 2024, expanding steadily from USD 432.14 million in 2021 at a CAGR of 5.57%.

This growth reflects a broader structural shift driven by electric vehicle (EV) adoption, large-scale renewable energy integration under the Power Development Plan VIII (PDP8), industrial expansion, and a wave of foreign direct investment into battery manufacturing facilities across northern and central Vietnam. The Vietnam battery market is projected to grow at a CAGR of 6.95% from 2025 to 2030, supported by government-led electrification policies, rising domestic production capacity, and a rapidly expanding competitive landscape spanning domestic players, South Korean conglomerates, and Chinese-invested manufacturers.

Vietnam entered 2026 as the only ASEAN economy with an operational domestic LFP gigafactory, a state-backed BESS target exceeding 10 GW by 2030, and an EV company, VinFast - holding over 21% of the domestic automotive market. The structural preconditions for accelerated battery demand are in place. What the next four years deliver will depend on how quickly pricing frameworks, supply chain localization, and infrastructure gaps are resolved.

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https://www.makreo.com/report/vietnam-battery-market-size-and-forecast-2021-2030

Vietnam Battery Market Evolution - From Lead-Acid Dominance to Lithium-Ion Transition -
Despite rapid technological advancement, lead-acid batteries continue to dominate Vietnam's battery market, accounting for 75.41% of total revenue in 2024. This share reflects the enduring scale of Vietnam's two-wheeler ecosystem, over 79 million registered motorcycles as of September 2024, nearly all powered by 12V lead-acid units favored for their low cost and ease of replacement. Car ownership reached approximately 60 vehicles per 1,000 people in 2023, up from around 20 per 1,000 in 2010, adding incremental starter battery demand across each successive year.

Dry cell batteries held a 24.59% revenue share in 2024, underpinned by Vietnam's role as a global electronics manufacturing hub. The country produced 182 million mobile phones in 2024, sustaining consistent demand for compact, high-performance primary batteries in consumer electronics and portable devices.

The Vietnam battery market narrative, however, is shifting decisively toward lithium-ion. VinFast's domestic automotive market share grew from 9.2% in 2023 to 21.3% in 2024, surpassing Hyundai and Toyota in the process. VinFast's model lineup runs entirely on lithium-ion, meaning each incremental unit sold generates direct cell demand at the VinES-Gotion Ha Tinh gigafactory. Electric motorcycle penetration reached approximately 18% in 2024, with VinFast's motorcycle division posting 501% year-on-year sales growth in the first half of 2025, while Yadea grew 37.5% over the same period.

Battery and accumulator manufacturing output grew 13.7% cumulatively in 2024 versus 2023, with December 2024 recording 17.7% year-on-year growth, the strongest single-month result of the year. That output acceleration tracks the ramp-up of Sunwoda, Exquisite Power, and Tianneng's Vietnam facilities, all of which reached scaled production after construction phases that began in 2022-2023. By source, domestically manufactured batteries account for 72% of total supply, with imported batteries holding the remaining 28%. Vietnam ranked 19th in BloombergNEF's Global Lithium-Ion Battery Supply Chain Ranking in 2024, ahead of Thailand (22nd), a position that reflects genuine manufacturing scale but limited upstream material integration.

PDP8 Policy Revision Triggers Large-Scale Battery Energy Storage (BESS) Demand in Vietnam -
The most consequential policy development in Vietnam's battery sector has been the revision of PDP8. The original 2023 plan included a BESS capacity target of just 300 MW by 2030, a figure widely regarded as insufficient for a grid set to absorb tens of thousands of megawatts of solar and wind generation. The revised PDP8, approved via Decision No. 768/QD-TTg in early 2025, raised that target to between 10,000 MW and 16,300 MW by 2030, and to nearly 96 GW by 2050 - a near-35-fold increase in the 2030 figure over two years.

Meeting this deployment timeline will require between USD 3.28 billion and USD 5.39 billion in capital, depending on the pace of global battery cost reductions toward USD 70/kWh by 2030. The policy framework is being built in parallel: MOIT issued Circulars 09/2025/TT-BCT and 12/2025/TT-BCT in early 2025, requiring concentrated solar power projects to install BESS with capacity equal to at least 10% of installed generation with a minimum of two hours of storage duration. Decision No. 988/QD-BCT set differentiated tariffs for solar-plus-storage projects at 1,577 VND/kWh (approximately 6.1 US cents/kWh) for floating solar with BESS.

A two-component standalone BESS pricing mechanism, covering capacity availability fees and energy discharge charges, is under active development by MOIT and is expected to unlock private investment at utility scale once finalized. The policy direction is unambiguous. The revenue infrastructure to convert that direction into bankable projects is still being built.

Vietnam Emerging as a Regional Battery Manufacturing Hub -
Vietnam is attracting battery manufacturers and energy storage investors at a pace that reflects both its policy signals and its structural cost and location advantages. Fluence Energy and South Korea's ACE Engineering brought a 35 GWh/year fully automated BESS manufacturing facility online in Bac Giang Province in August 2025, targeting domestic BESS deployment as well as Asia-Pacific, European, and US export markets. China's Tianneng established its first overseas manufacturing base in Vinh City, Nghe An Province, covering lead-acid and lithium batteries for two-wheelers, light EVs, and energy storage. Sunwoda increased its Bac Giang plant's total capital to USD 30.2 million in April 2025, targeting annual output of over 15.5 million lithium battery units with a further USD 300 million expansion planned at Yen Lu Industrial Park.

At the strategic joint venture level, the VinES-Gotion High-Tech partnership operates a 5 GWh/year LFP cell plant in Ha Tinh's Vung Ang Economic Zone, the only fully integrated domestic LFP production and EV assembly ecosystem in Southeast Asia. VinEnergo signed MoUs in August 2025 to install 43 MWp of rooftop solar combined with 45 MWh of BESS across VinFast's automobile factory, the VinES battery pack plant, and the V-G High-Tech Energy Solutions facility, marking the first direct power purchase agreement in Vietnam to combine solar with BESS.

Samsung SDI Vietnam, operating from Yen Phong Industrial Park, Bac Ninh, recorded revenue of KRW 1,100.5 billion in 2024, an 8.5% year-on-year increase. Its March 2025 first 46-format module shipment and its exclusive battery cell supply agreement with Selex Motors reflect deepening integration with Vietnam's domestic EV supply chain. Domestically manufactured batteries already account for 72% of total battery supply, reducing import dependency while strengthening Vietnam's regional supply chain position.

Vietnam Battery Industry Key Challenges - Infrastructure, Supply Chain, and Policy Gaps
The single largest structural constraint in Vietnam's battery market today is the absence of a finalized, bankable revenue model for standalone grid-scale BESS. MOIT is drafting a two-component pricing mechanism, a capacity price for system availability and an energy price for actual discharge, but the framework has not been published as of early 2026. Without it, large-scale private investment in utility-grade storage depends entirely on the limited tariff premium from co-located solar-plus-storage projects. The revised PDP8 targets 10,000-16,300 MW of BESS by 2030. Targets do not move capital. A finalized pricing mechanism does.

Vietnam's entire lithium-ion manufacturing ecosystem, from VinES's LFP cells to Samsung SDI's cylindrical batteries to every new factory that opened in 2024-2025, depends on Chinese-supplied cathode materials, electrolytes, separators, and cell components. China controls an estimated 60% of global rare earth production, and US-China trade tensions have driven lithium price spikes of up to 40% in recent months. Vietnam has nickel deposits in Son La, manganese resources, and rare earth reserves, but no midstream processing infrastructure for battery-grade materials exists domestically. Manufacturing capacity is real. Supply chain resilience is not yet.

Vietnam had approximately 2,000 public EV charging stations as of end-2023 against a government target of 20,000 by 2025 - a 90% deployment gap that has contributed to a 28% slower EV adoption rate in rural areas compared to urban centers. Investment requirements to close this gap are estimated at USD 4 billion through 2030. VinFast operates over 150,000 charging ports within its ecosystem, but that infrastructure is brand-specific. As BYD, Wuling, and Chery enter the Vietnamese market, the absence of brand-neutral public charging constraints total EV market growth, and with it, demand for battery replacements, second-life applications, and energy-as-a-service models.

Vietnam's domestic battery demand is projected to reach 46.9 GWh by 2030, supporting approximately 1.55 million electric two-wheelers, 171,000 passenger EVs, and 10,000 MW of BESS deployment. That volume will produce a proportional wave of end-of-life batteries with no formal recycling framework, no domestic processing capacity, and no regulated take-back scheme in place. This is simultaneously Vietnam's most acute environmental compliance gap and its most underdeveloped commercial opportunity, particularly as EU ESG export requirements affecting Vietnamese manufacturers begin to apply from 2025-2027 onwards.

Vietnam Battery Market Outlook - Six Structural Opportunities Through 2030
Grid-scale and C&I BESS project development is the first and most proportionally large opportunity. As Vietnam's 10,000-16,300 MW target becomes operational policy and the MOIT pricing framework is finalized, a project development pipeline will open across utility-scale, commercial and industrial, and distribution-level segments. Fewer than ten projects are at any meaningful stage of development as of early 2026. The gap between target and deployment is the market.

Battery-as-a-Service (BaaS) and swappable battery infrastructure at scale remains largely unbuilt outside a few urban corridors. Ho Chi Minh City alone has announced plans to convert 400,000 tech and delivery vehicles to EVs - a conversion that requires not just batteries but swap stations, subscription billing systems, IoT fleet management, and battery health monitoring infrastructure. Second-life battery applications represent an emerging market valued between USD 305 million and USD 420 million in 2025, with no established domestic players and no repurposing ecosystem, a first-mover window that remains open.

Upstream mineral processing for battery-grade materials is the highest-risk, highest-return white space in Vietnam's battery sector. Son La's nickel deposits, rare earth reserves, and manganese resources are geologically present. The gap is processing: converting mined material into battery-grade cathode precursors. Vietnam's stated goal of battery supply chain self-sufficiency requires midstream investment. Rural and semi-urban EV charging infrastructure carries a clear commercial rationale given the 90% shortfall against the government's own 2025 target. Battery recycling and circular economy services, particularly for lead-acid batteries from Vietnam's two-wheeler fleet, represent a compliance-driven commercial opportunity that will be activated when a regulatory take-back framework is introduced.

The convergence of policy support, industrial investment, and electrification demand positions Vietnam as a high-potential battery market in Asia-Pacific. The question for investors and manufacturers is not whether the market grows, it is who builds the infrastructure to capture each segment as it opens.

Vietnam Battery Market Competitive Landscape - Global and Domestic Players Strengthen Presence -
• Tier 1 (Market Leaders):
Dominated by Samsung SDI Vietnam and the VinFast-VinES-Gotion ecosystem, leading in lithium-ion and LFP battery production. GS Battery Vietnam controls over 60% of the motorcycle lead-acid OEM market, supplying major OEMs like Honda and Yamaha.

• Tier 2 (Domestic & Emerging Players):
Includes PINACO and Habaco (domestic leaders), alongside rising Chinese-backed manufacturers such as Sunwoda, Exquisite Power, Tianneng, and Hengli.

• Emerging BESS & Innovation Trends:
Companies like Fluence and ACE Engineering are localizing production, while T&T Group and Goldwind-GG Industries are investing in large-scale BESS manufacturing (up to 10 GWh capacity pipeline). Meanwhile, Alternō highlights innovation with sand-based thermal storage solutions.

Vietnam is rapidly evolving from an assembly hub to a regional battery manufacturing and innovation center, driven by global investments and domestic integration.

Vietnam Battery Market Research Coverage - Makreo Research
Makreo Research covers the Vietnam battery market through three research models, each designed to answer a different category of question.

The Vietnam Battery Market Size and Forecast (2021-2030) report delivers full market sizing by battery type, application, capacity range, source, and region; competitive benchmarking of key players across revenue, production capacity, and geographic footprint; price analysis across lead-acid and lithium-ion chemistries; BESS technology characteristics aligned with PDP8 targets; company profiles across Samsung SDI Vietnam, PINACO, Habaco, VinES, V-G High-Tech, LG Chem Vietnam, and others; and a full 2025-2030 revenue forecast with worst-case, base-case, and best-case scenario analysis.

• Custom Research:
Designed for specific business questions, covering buyer behavior, pricing strategy, channel mapping, competitive intelligence, factory capacity validation, and regulatory analysis tailored to investment or expansion decisions.
https://www.makreo.com/custom-research

• Market Surveys:
Deliver demand-side insights through targeted surveys, capturing EV buyer preferences, battery replacement trends, BESS adoption drivers, industrial purchasing behavior, and fleet decision-making frameworks.
https://www.makreo.com/market-survey

Access the Vietnam Battery Market Report
Vietnam Battery Market Size and Forecast (2021-2030):
https://www.makreo.com/report/vietnam-battery-market-size-and-forecast-2021-2030

Vietnam Battery Market Competition Assessment Report:
https://www.makreo.com/report/vietnam-battery-market-competition-assessment-report-2025

Market Segmentation of Vietnam Battery Market -
• By Type
Lead-Acid Battery
Dry Cell battery

• By Application
Automotive
Consumer Electronics
Energy Storage Systems
Industrial Applications
Other Applications

• By Region
Southern Vietnam
Northern Vietnam
Central Vietnam

By Source
Domestically Manufactured Batteries
Imported Batteries

• By Capacity Range
Below 1 kWh
1-50 kWh
Above 50 kWh

• Competitive Landscape
Competition
Mergers, Acquisitions, and Investments
Funding Timeline
Company Profiles

Contact Makreo Research
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Makreo Research and Consulting is a leading India-based market research and consulting firm, recognized for delivering data-driven insights and strategic intelligence that enable organizations to make informed, high-impact decisions. With a strong foundation in market analysis, business consulting, primary surveys, and industry intelligence, Makreo supports businesses in navigating complex and evolving market landscapes with confidence.

The firm offers a comprehensive suite of services, including syndicated research reports, custom consulting engagements, market mapping, and demand-side surveys, designed to provide both macro-level market visibility and granular, decision-ready insights. Backed by rigorous methodologies and validated data frameworks, Makreo ensures accuracy, reliability, and actionable outcomes aligned with real business objectives.

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This release was published on openPR.