Thailand, Indonesia, and Vietnam compete for EV leadership

Three Southeast Asian countries are competing to become major players in the electric vehicle (EV) market. Thailand, Indonesia, and Vietnam are making big investments and promoting policies to attract production. In Thailand, Yossapong Laoonual from the Electric Vehicle Association is optimistic. The government has rolled out the “EV 3.0” scheme, offering substantial subsidies to make EVs as affordable as regular cars. The market share for EVs has grown to around 15%, a significant increase from just a few years ago. However, the policy could reduce jobs in traditional car manufacturing as EVs require fewer parts. Indonesia, on the other hand, has focused on attracting manufacturers. The country has introduced tax exemptions and investment incentives while leveraging its rich mineral resources, like nickel. However, many investments are coming from Chinese companies that assemble vehicles from imported parts, raising concerns about local job creation. Vietnam's strategy revolves around VinFast, its national carmaker, which dominates the local market. Despite facing challenges in international markets, including a problematic launch in the U.S., VinFast plans to expand into India and Indonesia with government support. Still, it has not turned a profit and relies on the wealth of its billionaire owner to survive. All three countries face similar challenges. There is a risk of wasting resources amid a global oversupply of EVs. Additionally, they may become mere assembly hubs instead of high-tech production centers, as most value in EVs comes from software and engineering rather than traditional manufacturing. Optimists hope that these countries can develop their own regional hubs for EV production. However, geopolitical dynamics, especially with heavy reliance on Chinese expertise, complicate this vision. Ultimately, only one of these countries may emerge as a successful EV superpower, leaving the others facing costly failures.