USAID Vietnam Urban Energy Security

Scope of Work

Activity: Electric Two-wheeler Manufacturing Sector Assessment
Position: Market Assessment Consultant
Level of Effort: Up to fifty-five (55) days
Period of Performance: September 14, 2020 – November 16, 2020
Base of Operations: Hanoi / Vietnam

Project Background

Vietnam Urban Energy Security is a 4-year, USAID funded activity that addresses the problems of growing energy demand and air pollution from large coal projects and current urban energy practices in Vietnam. The activity supports cities to take advantage of: 1) the technological advancements and cost reductions of advanced, distributed energy solutions such as rooftop solar, battery storage, and demand response; 2) cleaner forms of transport; 3) energy efficiency and modern energy technologies for municipal services; and 4) business opportunities for local entrepreneurs in deploying distributed energy systems and services.

In supporting cleaner forms of transport, Vietnam Urban Energy Security seeks to promote the development of the electric vehicle (EV) market in Vietnam. The use of electric vehicles isstill in itsinfancy in Vietnam and the country has not yet developed a roadmap or embraced an official national position on the role of EVs in transportation. To date, the adoption of electric vehicles remain largely marginal, and internal combustion engine (ICE) two-wheelers continue to dominate the market. Especially, charging infrastructure such as charging stations or swapping hubs is almost non-existent, hindering the large-scale adoption of EVs due to the inconvenience for users. Despite these deficiencies, the electric vehicle market has been warming up in recent years and there has been an increasing number of companies – both well-established and new start-ups – that are looking at electric vehicles as a promising new market and seeking investment to test and grow this business.

Objective

In order to promote investments into the Vietnamese EV market, Vietnam Urban Energy Security seeks to assess the opportunities and challenges of manufacturing two-wheeler electric vehicles in Vietnam (focusing on >250W and >40kg two-wheelers) (the “Assignment”). The ultimate objective of the Assignment will be to produce a report that provides practical guidance to potential investors and/or enterprises with regard to the manufacturing of electric two-wheelers and battery packs in Vietnam, including information on regulations, licenses, physical space, human resources, and supporting industries to help facilitate the investment decisions into this emerging sector.

The resulting report should provide potential investors or entrepreneurs with enough information and insight into the Vietnamese context to be able to make educated decisions about whether and how to proceed in this market and provide greater insight into what information should be gathered and what questions should be asked in making these decisions.

Responsibilities

Vietnam Urban Energy Security is seeking an experienced consultant (hereafter referred to as the “Consultant”) who provide extensive expertise across two-wheeler and electric vehicle manufacturing in Vietnam.

Using existing examples, the Consultant should provide high level estimations of the physical, human, and financial resources required to start and maintain operations, and the typical pathways pursued by the industry in starting manufacturing operations and moving towards large-scale expansion. The Assignment will cover the whole value chain of electric two-wheelers and the EV battery pack manufacturing in Vietnam.

The Consultant will be required to produce a report that provides:

• An overview of the relevant inputs needed to commence manufacturing operations for electric two-wheelers and battery packs, including a summary of their accessibility, reliability, and average costs in Vietnam.
• An assessment of the pathways for starting and scaling manufacturing operations, including estimations of the financial, human, and physical resources needed to start-up manufacturing of electric two-wheelers and battery packs. This analysis should provide estimated cost breakdowns for different production scales (e.g. 100/ 1,000 / 10,000 electric two-wheelers and batteries/ year).
• A summary of the local inputs of the production chain, i.e. what is the percentage of localization, the capability of supporting industries in Vietnam versus the required imports.
• A review of relevant regulations that govern manufacturing, such as permits and licenses, mandates quality control checks, and product registration.

The Consultant is expected to conduct the Assignment through on in-depth desk research and interviews with key stakeholders for relevant data and understand common practices, drawing on his/her experience and expertise in the subject matter. As part of the Assignment, policy makers, regulators, operators, investors of the automobile industry should be consulted, together with start-ups or new market players in the electric vehicle sector.

Scope of Work

The Assignment includes, but may not be limited to, the following Scope of Work:

• Market review that includes the following:
  
  • Overview of the relevant inputs needed to establish electric two-wheeler and battery pack manufacturing operations and details on their accessibility, reliability, and cost in Vietnam.
  • Review ofrelevant regulations and policies that govern the manufacturing of electric two-wheeler and battery packs as well as permits and licenses required to engage in such activity
  • Assessment of typical pathways pursued by manufacturers of similar products in Vietnam
  • Assessment of the manufacturing outsourcing versus in-house manufacture, including considerations for determining the appropriate pathway and tradeoffs amongst the typical approaches or models
• Overview of scaling potential for electric two-wheeler and battery pack manufacturing, including:
  
  • Estimations of required financial resources to manufacture electric two-wheelers at small, medium, and large scales (e.g., below 100 units/year; 1,000 units/year; over 10,000 units/year)
  • Financial Analysis Report that details required resources - financial, physical, and human – needed at different manufacturing levels

Deliverables

Throughout the Assignment, the Consultant is expected to participate in regular phone calls and meetings to provide progress updates and should provide outlines of deliverables for comment and approval before developing the reports and prepare drafts for feedback and input before finalizing. Additionally, the Consultant should provide information regarding any interviews held, including interview guides and notes, and should provide include a written summary of the desk research that is undertaken.

The Consultant is expected to produce the following deliverables:

• Draft report of the Assignment
• Presentation of report and key findings
• Final report of the Assignment following receipt of written feedback

Location and Reporting

The Consultant will report to the Deputy Chief of Party (DCOP). Depending on the location of the Consultant, the reporting may be through in-person meeting (if based in Hanoi) and/or through weekly conference call (if based elsewhere). All communication will be in English (written and verbally).

Qualifications

• Experience in the manufacturing sector in Vietnam required, with a preference for two-wheeler and battery pack manufacturing
• Experience conducting market assessments in Vietnam; preference for candidates who can share relevant examples
• Experience conducting financial analyses and costing exercises; preference for candidates who can share relevant examples
• Demonstrated understanding of the Assignment; ability to propose viable approach to completing the tasks
• Demonstrated contacts and networks in relevant sectors
• University degree is required
• Fluency in Vietnamese
• Good writing, speaking, and reading skills in English; demonstrated report writing skills in English is required

Application Instructions

Interested candidates should send their CVs and cover letters detailing their relevant experience and information regarding their proposed approach to [email protected] by September 14, 2020.

About DAI

DAI works at the cutting edge of international development, combining technical excellence, professional project management, and exceptional customer service to solve our clients’ most complex problems. Since 1970, DAI has worked in 150 developing and transition countries, providing comprehensive development solutions in areas including crisis mitigation, democratic governance and public sector management, agriculture and agribusiness, private sector development and financial services, economics and trade, water and natural resources management, and energy and climate change. Clients include international development agencies, international lending institutions, private corporations and philanthropies, and host-country governments. More information about DAI can be found on the DAI
website (www.dai.com).

Organization: DAI
Location: Hanoi
Application deadline: 2020-09-14
Send application to: [email protected]