Vmoto has continued its international investment strategy with an investment in LIT Energy. This is one of the most significant investments to date as it gives Vmoto access to Vietnam, the third largest, and one of the fastest growing, E2W markets in the world.
Vmoto will invest AUD 200,000 in Lit Energy Network Australia Pty Ltd for a 10% share in the company.
Importantly, Lit Energy is planning an ASX listing through a merger transaction with Story-i Limited. This transaction and listing on the ASX are expected to happen by 30th June 2026.
Lit Energy focuses on the electrification of mobility in Vietnam by operating electric mopeds, battery-swapping stations, and fast-charging stations.
The company operates under the brand ‘Litgo’ and offers B2B motorcycle leasing, fast charging, and battery swapping services. It also aims to earn through after-sales and maintenance services and advertising revenue.
The Importance of Vietnam
In terms of sales volumes, Vietnam should be the third-largest electric two-wheeler market. The local market is led by homegrown players like Vinfast, with new startups like Dat Bike fast gaining traction. Honda is still new in the market and has started manufacturing the Icon e: scooter locally. It also sells the CUV e:.
Vietnam has a two-wheeler parc of more than 75 million vehicles as per the Ministry of Transport. The densest cities of Hanoi and Ho Chi Minh City have more two-wheelers than inhabitants.
Vietnam: Strong Incentives
With the large vehicle parc, the government has a clear focus on electrification, and in recent years, this has given a strong boost to E2W sales.
In 2022, the Vietnamese Government issued new policy decisions that include exempting all Battery Electric Vehicles (BEVs, including two-wheelers) from registration fees for the first three years and a 50-percent reduction for the next 2 years. The policy also reduced the excise tax rate for BEVs to 1- 3% for a period of five years starting from March 1, 2022.
Between 2024-25, Vietnam further extended electric mopeds from registration and road tax till February 2027.
Apart from the national schemes, Ho Chi Minh City (Saigon) has a pilot to replace ICE motorcycles with electric ones in low-income households, supporting them through interest-free loans, scrapping incentives, and exemptions from VAT/ registration. The capital city has also set a target to convert all delivery vehicles and ride-hailing fleets to electric by 2030, with 80% to be achieved by 2027. For this, HCMC is deploying extensive charging and swapping infrastructure. HCMC is also offering soft loans at low interest rates to push E2W usage.
Most importantly, by 2030, the city plans to convert the central areas to zero-emission zones, allowing only electric vehicles to enter. There is also a draft proposal under review that may end up banning ICE two-wheelers on delivery platforms completely by 2029, with new ICE registrations of delivery two-wheelers banned from 2026 itself.
In Hanoi, apart from the national incentives, there is a notification that post 1st Jul 2026, ICE vehicles would not be allowed inside the Ring Road 1. Apart from that, the city provides support to electric vehicle pilots and adapts electric two-wheelers in the city’s fleets and services.
With these strong incentives and restrictions in place, E2W sales have been very strong in recent quarters. Vmoto is entering an important market at the right time.
Senior Executive Statements
“We are pleased to invest in Lit Energy, accessing the the Vietnamese market. With Lit Energy’s local market experience, network and resources and Vmoto’s knowhow and technical capabilities, we can quickly scale up and expand Lit Energy’s operations in Vietnam using Vmoto’s high quality electric motorcycles/mopeds and assisting Lit Energy to develop fast-charging and battery swapping infrastructure across the country.” – Vmoto’s Managing Director, Mr Charles Chen.
“We are very pleased to secure Vmoto as investors and shareholders of Lit Energy. Combining Vmoto’s high quality products and international market experience, it will help Lit Energy to expand its operations and to achieve steady growth of income with high quality products and put us in strong position to accelerate the adoption of e-mobility in Vietnam with the backing of Vietnam government’s EV policies.” – Lit Energy’s Chief Executive Officer, Mr Jen Cheng Ong.
