While ASEAN Neighbours Grow in EV Industries, What Can Cambodia Do Beyond a Consumer Role?

• 30 November 2023
• Local News
• 3476 Views

While neighboring countries such as Thailand, Indonesia, and Vietnam are making significant strides in the electric vehicle (EV) industry, Cambodia’s participation in this emerging market has been relatively subdued. The country’s limited activity in EV products can be attributed to several barriers that hinder the development of the EV market. Understanding these challenges and identifying potential solutions is crucial to unlocking Cambodia’s potential in the EV sector. Now let’s have a look at recent updates on the EV market in some ASEAN neighborhoods.

THAILAND Continues Backing for Locally Produced EVs: On 1 November 2023, Thailand accelerated its electric vehicle (EV) ambitions with the approval of the groundbreaking “EV3.5” subsidy scheme. Aimed at bolstering domestic EV production, the scheme offers an enticing subsidy of up to 100,000 baht (US$2,760) per car from 2024 to 2027. This initiative positions Thailand as a key player in the regional push towards sustainable transportation, according to the ASEAN Briefing of 10 November 2023.

INDONESIA aims to be one of the world’s top three producers of EV batteries by 2027: Indonesia emerges as a pivotal player in the global electric vehicle industry, leveraging its abundant nickel reserves. The Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, reveals that global EV giants, including Tesla and BYD, are on the brink of finalizing investment deals in Indonesia. With aspirations to become one of the top three EV battery producers by 2027, Indonesia positions itself as a strategic hub for the EV revolution, according to ASEAN Briefing on 23 November 2023.

VIETNAM, VinFast Already Accelerates Revenue Growth Amid Global Expansion Plans: In Vietnam, VinFast, the rising star in the electric vehicle arena, reported a remarkable Q3 2023 revenue of US$343 million, marking a staggering 159% year-on-year growth. Despite a net loss of US$623 million during the same period, VinFast remains undeterred in its pursuit of global expansion. With ambitions to reach 50 markets and countries by the end of 2024, VinFast signifies Vietnam’s growing influence in the EV market, according to prnewswire.com dated 5 October 2023.

CAMBODIA Does Not Yet Have Initiatives or Plans on the Production Side, only Imports and Consumption: The Cambodian electric vehicle (EV) market has been experiencing significant growth in recent years. As of February 2023, there are 700 registered electric vehicles in the country, representing a 1,000% increase from the previous year. The government has set ambitious goals for EV adoption, aiming to have 40% of all cars and urban buses and 70% of motorbikes be electric by 2050, (ResearchInCambodia, 31 March 2023). However, the focus appears solely on importing and consumption, leaving questions about Cambodia’s proactive involvement in EV production.

So What are the Barriers to Cambodia’s Active Participation in EV Products:

Infrastructure Limitations: Cambodia faces challenges related to the development of EV infrastructure, including the availability of charging stations and supportive policies for EV adoption.

Market Awareness and Demand: Limited awareness and demand for EVs among Cambodian consumers pose a barrier to the growth of the EV market. The lack of consumer education and promotion of EV benefits may contribute to low adoption rates.

Regulatory Framework: The absence of comprehensive regulations and incentives tailored to promote EV adoption and production within Cambodia may hinder the development of the EV industry.

Investment and Manufacturing: Cambodia’s limited investment in EV manufacturing and production facilities may impede the country’s ability to compete in the global EV market, especially in comparison to neighboring countries such as Thailand and Indonesia.

By addressing these barriers and implementing the suggested measures, Cambodia can overcome its current limitations and actively participate in the global shift toward electric mobility. The development of a thriving EV market in Cambodia not only aligns with global sustainability goals but also presents economic opportunities and technological advancements

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