Many families and business households are expressing interest in investing in and operating electric vehicle (EV) charging stations.

Collaborative models between charging station providers and individuals or households are becoming increasingly popular.

Three investment models

After considering various options, Tran Hoang decided to install four 60kW charging poles on a 100 square metre lot near Ngoc Hoi Road, Thanh Tri District, Hanoi. He noted that there are three prevalent collaborative models offered by charging station companies: land leasing, equipment purchase, and joint ventures.

1. Land leasing: The charging station company handles the investment, operation, and management of the equipment.
2. Land provision and Equipment Purchase: The station developer provides management and operational services for a fee-sharing arrangement.
3. Joint ventures: Both parties jointly invest and operate, sharing the profits equally.

Hoang opted to partner with V-Green under the "land provision and equipment purchase" model to achieve higher profits. His station commenced operations in early November.

To establish the station, he was required to provide personal tax codes, identification, marital status certification, and land use rights documentation.

He also collaborated with the power company to install a transformer station, secure fire safety certification, and register the business.

Each of the four poles (with eight charging ports) cost approximately VND 280 million (US$ 11,300). Additional expenses included VND 800 million for the transformer station and VND 500 million for infrastructure such as concrete foundations, wiring, and fire safety measures. The total investment amounted to approximately VND 2.3 billion.

The station serves an average of 20-30 vehicles daily, selling around 60,000 kWh per month. Based on the profit-sharing agreement, Hoang earns approximately VND 45-50 million monthly, with an estimated payback period of 3-4 years.

Increasing interest from businesses

As EV adoption grows, individuals with available land and business experience are considering investments in EV charging stations.

Nguyen Manh Hung, based in Chi Linh City, Hai Duong, plans to install a charging station next year on his existing workshop property near a highway. "With a pre-installed transformer and available land, I only need to invest a few hundred million in equipment and licences to start the business," he said, though he remains uncertain about customer demand.

V-Green has pioneered a franchised charging station model for businesses, individuals, and households. Landowners invest in infrastructure and equipment, while the company provides technology, financial management, maintenance, and marketing support. Revenue-sharing agreements range from VND 350 to 750 per kWh, depending on the collaboration model.

Other companies, such as EV One, Solar Z, and EV Power, are also entering the franchised charging station market. Unlike V-Green, which serves only VinFast vehicles, these companies accommodate EVs from all brands.

Considerations for investors

Nguyen Van Phong, an electric taxi driver in Hanoi, highlighted that private charging stations offer lower prices, averaging around VND 3,500 per kWh.

Some even offer time-based rates, as low as VND 2,950 per kWh during off-peak hours, compared to nearly VND 10,000 per kWh at certain corporate stations.

According to a senior official at a crypto-only car dealership platform, partnerships with private landowners result in better pricing due to lower land costs and household electricity rates. In contrast, companies investing independently face higher costs for land leases and commercial electricity rates.

Private station operators emphasise the importance of evaluating land suitability, local demand, and power company approvals before investing. Additionally, as EV adoption rises, equipment costs are expected to decline, leading to increased competition in the sector. To mitigate risks, investors may consider offering additional services at their stations.

Challenges and costs

According to Nguyen Manh Cuong, Chairman of Ever EV (a V-Green partner), constructing a fast-charging station with four poles costs around VND 2 billion. The land must be zoned for commercial or residential use.

High transformer and 3-phase power installation costs, especially in urban areas, remain a significant challenge. Transformer stations for four poles can cost over VND 1 billion.

With EV charging rates in Vietnam among the lowest globally, the fastest payback period is estimated to exceed three years.

Charging pole pricing

V-Green offers slow chargers (7.4kW or 11kW) priced between VND 10.3 million and VND 17.6 million. Fast chargers range from VND 143 million (30kW) to nearly VND 3.3 billion (250kW).

Landowners investing in charging poles earn a fixed revenue of VND 750 per kWh over a minimum period of 10 years. For current VinFast EVs, estimated revenue per charge ranges from VND 15,000 to VND 90,000 per vehicle.