HANOI (Reuters) – Vietnam plans to subsidize electricity prices for electric vehicle (EV) charging stations, part of its efforts to promote the use of electric vehicles and meet its energy transition commitments.

The subsidy plan is to be submitted to the central government for approval by mid-September, the government said in a statement at the weekend.

The Southeast Asian country, home to electric vehicle manufacturer VinFast, is aiming to achieve carbon neutrality by 2050, in line with the commitment of advanced economies.

The country currently has just over 150,000 electric vehicle charging stations, most of which are owned and operated by VinFast.

“The transition to green energy is an essential and important task in the process of achieving green development goals and fulfilling Vietnam’s international obligations,” the government statement said.

The government will also create incentives for the production and import of electric vehicles and encourage users to switch from combustion engine vehicles to electric vehicles, the statement said.

The statement said Vietnam will ensure that all urban areas have public charging systems for electric vehicles and that a unified set of technical standards for these stations will be issued by the end of this month.

The country had previously introduced measures to exempt registration fees and reduce the special consumption tax for new electric vehicles.

(Reporting by Khanh Vu and Phuong Nguyen; Editing by Varun HK)